Pig Butchering Scams Plague US Citizens
Pig butchering scams have become a growing concern in the United States, leading to significant financial losses for victims. According to Erin West, Deputy District Attorney in Santa Clara, California, these scams are on the rise, with an average of 5-6 emails daily being received from individuals who have fallen victim to pig butchering. The latest victim reported a loss of $5 million, highlighting the substantial financial impact of these scams.
Furthermore, the stolen funds from these scams are channeled overseas to transnational criminal organizations in countries like Myanmar and Cambodia. These criminal groups use trafficked individuals as virtual slaves to carry out the pig butchering scams. Such activities exacerbate the issue and make it more challenging to address.
According to TRM Labs, a leading blockchain intelligence company, the FBI’s Internet Crime Complaint Center (IC3) has received over 4,300 complaints related to pig butchering, with cumulative losses surpassing $400 million. Reports from FBI field offices indicate that the surge in pig butchering shows no signs of abating.
Erin West has developed a prosecutorial blueprint for tackling pig butchering cases in the United States. As a member of the Regional Enforcement Allied Computer Team (REACT) Task Force, West specializes in investigating high-tech crimes. She emphasizes the need for a comprehensive ‘whole-of-government’ solution to combat pig butchering. West’s collaboration with Binance, the world’s largest cryptocurrency exchange, enabled the recovery of funds for 26 victims. This success prompted her to disseminate the blueprint nationwide to offer assistance to other victims.
In a separate development, despite a slight decline in hacking incidents targeting the cryptocurrency industry in 2023, hackers managed to steal around $2 billion in digital assets, according to a report from De.FI, a prominent web3 security firm known for its REKT database. This marks the first decrease in crypto hacking incidents since 2021. The REKT database ranks the most devastating crypto hacks, highlighting ongoing vulnerabilities and challenges within the DeFi ecosystem.
The cumulative amount of stolen funds in multiple incidents underscores the persisting vulnerabilities and the progress made in addressing them. The report from De.FI suggests that 2023 served as a testament to both the ongoing vulnerabilities and the progress made in addressing them, despite muted interest in the space during the first half of the year due to the ongoing bear market.