<![CDATA[<figure class="image"><img src="https://cimg.co/news/123285/326151/adobestock-richelle-1.jpeg" alt="" srcset="https://cimg.co/news/123285/326151/responsive-images/adobestock-richelle-1___media_library_original_4032_3024.jpeg 4032w, https://cimg.co/news/123285/326151/responsive-images/adobestock-richelle-1___media_library_original_1200_900.jpeg 1200w, https://cimg.co/news/123285/326151/responsive-images/adobestock-richelle-1___media_library_original_900_675.jpeg 900w, https://cimg.co/news/123285/326151/responsive-images/adobestock-richelle-1___media_library_original_720_540.jpeg 720w, https://cimg.co/news/123285/326151/responsive-images/adobestock-richelle-1___media_library_original_600_450.jpeg 600w, https://cimg.co/news/123285/326151/responsive-images/adobestock-richelle-1___media_library_original_300_225.jpeg 300w" sizes="100vw" width="4032" class="content-img"><figcaption>Source: AdobeStock / Richelle</figcaption></figure>The number of 'pig butchering scam' cases reported to <a href="https://cryptonews.com/news/binance-pay-steps-into-brazil-simplifying-crypto-payments-for-businesses-crypto-adoption-rise.htm">Binance</a> has increased by 100.5% from 2022 to date, the exchange <a href="https://www.binance.com/en/blog/community/binance-reports-a-100-rise-in-pig-butchering-scams-and-shares-tips-to-prevent-them-601342202418225172">said</a>.Binance warned that the number of reported pig butchering scam cases doubled over the past year.Scammers are drawn to whatever is gaining popularity: "Wherever there&rsquo;s an opportunity to promise high returns with minimal risks, a pig butchering scam can take place."Blockchain and digital assets have seen increased adoption, higher demand, and recognition, Binance said, drawing attention from all sorts of scammers.&nbsp;Per the exchange,<blockquote>"Pig butchering scams have experienced a worrying upsurge in the crypto space, fueled by the growing interest in digital-asset investments. This rise is part of an overall increase in investment scams across all finance-related industries."</blockquote>Losses from investment fraud jumped 127% from $1.45 billion in 2021 to $3.31 billion in 2022, a "significant" portion of which involved crypto.&nbsp;Crypto investment fraud cases went up 183%, from $907 million in 2021 to $2.57 billion in 2022, Binance wrote.The exchange's internal data and research recorded "a roughly 100% increase" in the number of reported pig butchering scams from 2022 to 2023 - a figure that will likely rise by the year's end.Per Binance,<blockquote>"This surge in crypto-related scams can be connected to the influx of inexperienced investors entering the market, with scammers seizing the opportunity to exploit their lack of knowledge about a new asset class."</blockquote>Blockchain, however, makes it easier to track and fight these scams, as transactions are public and traceable. As such, it is "a powerful tool" for gathering evidence and taking action against scammers.<h2 id="anyone-can-fall-victim">Anyone Can Fall Victim</h2>'Pig butchering' consists of scammers 'fattening up' their victims - commonly inexperienced investors, before 'butchering' them.&nbsp;Per Binance,<blockquote>"It is important to remember, however, that anyone can become a fraud victim, including more experienced investors and knowledgeable crypto users."</blockquote>First, the victims are promised high returns should they invest on a fraudulent platform and are shown initial 'profits' once they do. Over time, the fraudsters gain the victim's trust, taking more money.Then, the scammers take as much as possible and whatever money the victim has left - before disappearing.These actors' tactics have been used for decades in various financial cons. Common types include social engineering scams, romance scams, Ponzi schemes, exit schemes, and pump-and-dump schemes.&nbsp;There are some tips people can follow to distinguish a legitimate investment opportunity from a scam, such as conducting thorough research, verifying credibility, investing through official channels, not rushing into decisions, and being skeptical of unsolicited offers.Meanwhile, in April, Binance <a href="https://www.justice.gov/usao-cdca/pr/justice-dept-seizes-over-112m-funds-linked-cryptocurrency-investment-schemes-over-half">supported</a> the US Federal Bureau of Investigation (FBI) and Department of Justice (DOJ) in a crypto-linked pig butchering case where $112 million in funds were seized.&nbsp;____<h3 id="learn-more">Learn more:</h3>- <a href="https://cryptonews.com/news/pig-butchering-crypto-investment-scams-delivered-massive-losses-to-victims.htm">'Pig Butchering' Crypto Investment Scams Delivered 'Massive Losses' to Victims</a> - <a href="https://cryptonews.com/news/major-media-outlets-seek-release-of-9-million-ftx-customer-names-despite-scam-fears-whats-going-on.htm">Major Media Outlets Seek Release of 9 Million FTX Customer Names Despite Scam Fears</a> - <a href="https://cryptonews.com/news/spike-crypto-scams-targeting-young-korean-women-heres-how-fraudsters-strike.htm">Spike in Crypto Scams Targeting Young Korean Women &ndash; Here&rsquo;s How Fraudsters Strike</a> - <a href="https://cryptonews.com/news/serial-scammer-uses-advanced-laundering-techniques-clean-stolen-crypto-worth-15-million-heres-what-you-need-know.htm">Serial Scammer Uses Advanced Laundering Techniques to Clean Stolen Crypto Worth $15 Million</a>
]]>

Binance Warns of Escalating Pig Butchering Scams – What's Going On?

Table of Contents

Cryptonews.com

Other articles published on Aug 24, 2023

Euro Stablecoin EUROe Launches on Solana, Fiat Gateway Available

Pro-XRP Lawyer Reacts to SEC Attorney Leaving Ripple Lawsuit: Insight into the Controversy

Ethereum Advocate Slams Cardano as "Zombie Chain"

Pantera Capital: $35k Bitcoin Expected Before 2024 Halving, Then Blast Off to $148k

Exclusive: Raleon Raises $3.8M in Seed Funding to Transform Web3 Marketing with Innovative Engage...

Ripple and SEC Set to Clash Again: Appeal Scheduled for Q2 2024 Amid Availability Clash

Join our free newsletter for daily crypto updates!