Summary
Romance scams involving pig butchering have seen a significant increase in crypto activity, with revenue doubling from 2022 to 2023, according to Chainalysis. Despite a decrease in total value sent to scams, romance scams have continued to grow. Victims are tricked into giving scammers access to their funds through social engineering tactics. The financial impact of romance scams on victims is high, with an average payment size of $4,593 in 2023. Many romance scams go unreported due to the shame associated with them. Some scammers have been caught, with reports suggesting they may be victims of human trafficking themselves. Chinese police have intervened in Myanmar to arrest those running scam centers.
Key Points
1. Crypto activity linked to “pig butchering” romance scams has increased significantly, with revenue doubling from 2022 to 2023, according to a report from Chainalysis.
2. Romance scams involving pig butchering typically start with the scammer building an online relationship with the victim before tricking them into giving access to their funds by leveraging the victim’s lack of crypto knowledge.
3. Romance scams have the worst financial impact on victims, with the average payment size for these scams being $4,593 in 2023, highlighting the psychological and financial devastation caused by these schemes.