IRS: Don’t Become a “Pig” – Don’t Fall for Crypto Criminals

The Internal Revenue Service (IRS) has issued a warning about cryptocurrency scams related to so-called pig slaughter. Special agents of the US Treasury emphasized that scams of this type operate today all over the world, but that “US taxpayers are currently the largest target group” of criminals behind them.

Pig Slaughter Scam Alert

The US Internal Revenue Service has issued a warning about cryptocurrency scams involving so-called pig slaughter, which happened during International Scam Awareness Week. The US tax agency wrote:

IRS Criminal Investigation (CI) special agents are seeing hog slaughter schemes popping up around the world.

CI is the investigative arm of the IRS that is responsible for investigating financial crimes, including tax fraud, drug trafficking, money laundering, public corruption, health care fraud, and identity theft.

The IRS has described how pig slaughter works. It has pointed to the first, most cynical stage. Criminals contact victims using social media, often dating sites. They want to “lure” people who play the role of “pigs” in this process. Victims are encouraged to invest in cryptocurrency trading platforms. Initially, they earn money, but when they “try to withdraw money, criminals seize their funds.”

CI Chief Jim Lee commented on the precedent:

Crypto scammers have become more sophisticated in their schemes. (…) people invest their savings in cryptocurrencies and make a profit, only to never see that money again.

The IRS noted:

To date, the largest reported loss in one of these schemes is $2 million, but average losses are larger – hundreds of thousands of dollars.

Further added:

If you meet someone on a dating site or app and they try to convince you to invest in cryptocurrencies, it’s probably a scam.

Apparently there is a precedent almost all over the world, but the greatest number of victims is in the USA.

FBI: Beware of Cryptocurrencies!

The Federal Bureau of Investigation (FBI) has repeatedly warned of hog slaughter scams. In August of last year, US authorities said that these types of scams were becoming alarmingly popular. In April of this year, the US Department of Justice seized $112 million worth of cryptocurrencies that had been seized from victims as part of a “slaughter.”