Florida’s CFO warns of ‘pig butchering’ cryptocurrency scam

Florida Chief Monetary Officer Jimmy Patronis on Wednesday warned of a cryptocurrency rip-off often called “pig butchering” or ”pig slaughtering.”

As a part of the rip-off, in accordance with Patronis, persons are enticed to place an increasing number of cash right into a faux cryptocurrency funding scheme solely to “fatten them up” earlier than a scammer disappears with huge sums of their cryptocurrency.

Patronis stated this rip-off is reportedly most frequently carried out on relationship websites and on social media as a brand new type of a romance rip-off.

“In Florida, we embrace rising know-how and innovation, however shoppers should at all times keep on guard for scams particularly as new monetary merchandise like Bitcoin and different cryptocurrencies turn into more and more well-liked. Reviews say cryptocurrency scams have bilked tens of millions out of unsuspecting crypto buyers; a lot of which have been scammed by way of on-line relationship apps over the course of a number of months,” Patronis stated. “Similar to with any main monetary choice, shoppers ought to do analysis and by no means switch funds to somebody you assume is suspicious, untrustworthy, and whose id you haven’t verified. It’s possible you’ll as effectively kiss your cash goodbye.”

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In the event you really feel you’ve got been the sufferer of a rip-off, you’re urged to report it instantly at FraudFreeFlorida.com.

“All the time bear in mind, if a possibility sounds too good to be true, it’s,” Patronis stated.

Listed here are three suggestions from the Federal Commerce Fee to keep away from cryptocurrency scams:

• Solely scammers demand fee in cryptocurrency. No professional enterprise goes to demand that you just ship cryptocurrency upfront — to not purchase one thing, and to not shield your cash.

• Solely scammers will assure income or massive returns. Don’t belief individuals who promise you may shortly and simply make cash within the crypto markets.

• By no means combine on-line relationship and funding recommendation. In the event you meet somebody on a relationship website or app, and so they wish to present you spend money on crypto or ask you to ship them crypto, that’s a rip-off.

For extra recommendation on keep away from cryptocurrency scams, click on right here.