FinCEN Issues Alert on Prevalent Virtual Currency Investment Scam Commonly Known as “Pig Butchering”
WASHINGTON—Today, the Financial Crimes Enforcement Network (FinCEN) issued an alert to highlight a prominent virtual currency investment scam known as “pig butchering.” Multiple U.S. law enforcement sources estimate victims in the United States have lost billions of dollars to these scams and other virtual currency investment frauds.
“This scam has impacted far too many Americans, which is why FinCEN is sounding the alarm and asking financial institutions to report suspicious activity indicative of this scheme,” said Acting Director Himamauli Das. “Suspicious Activity Reports filed by financial institutions will enable law enforcement to both aid victims and track down the perpetrators.”
“Pig butchering” scams resemble the practice of fattening a hog before slaughter. Victims invest in supposedly legitimate virtual currency investment opportunities before they are conned out of their money. Scammers refer to victims as “pigs,” and may leverage fictitious identities, the guise of potential relationships, and elaborate storylines to “fatten up” the victim into believing they are in trusted partnerships before they defraud the victims of their assets—the “butchering.” These scams are largely perpetrated by criminal enterprises based in Southeast Asia who use victims of labor trafficking to conduct outreach to millions of unsuspecting individuals around the world.
FinCEN's alert explains the scam's methodology; provides behavioral, financial, and technical red flags to help financial institutions identify and report related suspicious activity; and reminds financial institutions of their reporting requirements under the Bank Secrecy Act.
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EYES ON TRAFFICKING
This “Eyes on Trafficking” story is reprinted from its original online location.
ABOUT PBJ LEARNING
PBJ Learning is a leading provider of online human trafficking training, focusing on awareness and prevention education. Their interactive Human Trafficking Essentials online course is used worldwide to educate professionals and individuals how to recognize human trafficking and how to respond to potential victims. Learn on any web browser (even your mobile phone) at any time.
More stories like this can be found in your PBJ Learning Knowledge Vault.