Key Points
- Maryland residents lost nearly $54.5 million to cryptocurrency investment scams in the first 8 months of 2024, with 482 reported cases.
- The FBI highlights “pig butchering” as one of the most prevalent and damaging fraud schemes, urging caution when dealing with online investment opportunities.
Alarming Rise in Crypto Scams
The Federal Bureau of Investigation (FBI) has issued a stark warning about the growing threat of cryptocurrency investment fraud in Maryland. According to the latest data from the FBI’s Internet Crime Complaint Center (IC3), Maryland residents have reported losses of almost $54.5 million to cryptocurrency investment scams from January to August 2024 alone. This alarming figure comes from 482 individual reports, highlighting the widespread nature of the problem.
FBI Baltimore Special Agent in Charge William J. DelBagno emphasized the gravity of the situation, stating, “Bottom line: never trust someone you haven’t met who claims to be an expert and can help you make money through a can’t-miss investment opportunity.” DelBagno noted that victims span a wide age range, from individuals in their 20s and 30s to senior citizens, all of whom have been “absolutely devastated by these schemes.”
Understanding “Pig Butchering” Scams
The FBI’s press release specifically mentions “pig butchering” as one of the most prevalent and damaging fraud schemes in the cryptocurrency space. This type of scam involves criminals manipulating victims into depositing increasingly large sums of money into fake cryptocurrency investments. The scammers often build trust over time, leading victims to believe they are making profitable investments when, in reality, their funds are being stolen.
The term “pig butchering” comes from the scammers’ tactic of “fattening up” their victims before ultimately “slaughtering” them financially. These schemes are particularly insidious because they often involve long-term manipulation and can result in victims losing their entire investment.
Protecting Yourself from Crypto Fraud
In response to the rising threat, the FBI has provided several tips to help individuals recognize and avoid cryptocurrency investment scams:
- Be wary of unsolicited investment advice, especially from individuals met online.
- Verify the legitimacy of investment opportunities and cryptocurrency platforms.
- Be cautious of domain names that impersonate legitimate financial institutions.
- Avoid downloading suspicious apps for investment purposes.
- Remember that if an investment opportunity sounds too good to be true, it likely is.
The FBI also advises against paying additional fees or taxes to withdraw funds from suspected fraudulent schemes, as these are often attempts to extract more money from victims.
As cryptocurrency adoption continues to grow, it’s crucial for investors to remain vigilant and educated about potential risks. The FBI’s warning serves as a reminder that while digital assets offer new opportunities, they also present new avenues for fraudsters to exploit unsuspecting individuals.
