The US Secret Service has issued a warning about the growing threat of cryptocurrency investment scams known as 'pig butchering'. This type of scam involves scammers enticing investors to put money into fake accounts, which then suddenly appear to be highly valuable.
'Pig butchering' is being described as the modern-day equivalent of a Ponzi scheme. Scammers use complex terminology and promise unusually high returns to lure in unsuspecting victims. However, when people try to withdraw their funds, they discover that the account was never real to begin with.
The Secret Service has stated that cryptocurrency can be particularly vulnerable to these types of scams due to its complexity. Michael Peck, an assistant special agent in charge with the US Secret Service, said 'even I get confused' by some of the technical terms used in cryptocurrency transactions. He warned people not to click on suspicious links or invest in schemes that seem too good to be true.
To protect themselves from these scams, the Secret Service is advising people to ignore random messages from unknown sources and to be wary of promises of quick profits. They are also warning against sharing personal details online as this can be used by scammers to build trust and gain access to sensitive information.