Hackers stole millions in digital assets from popular cryptocurrency exchange Crypto.com, the company announced Thursday.

IRS Warns Of “Pig Butchering” Romance Schemes

Individuals desire companionship, and since more people are utilizing social media and dating apps to establish relationships, online romances have grown in popularity.
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Individuals desire companionship, and since more people are utilizing social media and dating apps to establish relationships, online romances have grown in popularity.

While happily ever after is the desired outcome, IRS Criminal Investigation (CI) special agents are witnessing an increase in “pig butchering” operations worldwide.

Using social media, flirtatious strangers entice romantic partners—who act as the “pigs”—to make cryptocurrency trading platform investments.

Read: 3 People Convicted For Laundering Money In California Gift Card Scam

When victims try to withdraw their money, thieves take it.

This year, IRS Criminal Investigation (CI) is cautioning US taxpayers not to get butchered during International Fraud Awareness Week, which runs from November 12–18.

“Cryptocurrency scammers have become more sophisticated with their schemes. It’s a shame to watch people hopelessly invest their savings in crypto and earn returns on their deposits – to never see the money again. This International Fraud Awareness Week, we don’t want additional victims to get butchered,” said CI Chief Jim Lee.

CI investigators warn that U.S. taxpayers are currently the most targeted population for pig butchering schemes.

Thus far, the highest identified loss in one of these schemes is $2 million, but average losses are hundreds of thousands of dollars. If you meet someone on a dating website or app and they urge you to invest in crypto, it is likely a scam.

Individuals should be aware of these red flags:

  • A long-lost contact or stranger sends you a message on social media.
  • You are urged to send money to an investment platform that is similar but does not match the
    platform’s official website address. This is called typo-squatting.
  • You have an online romantic interest who asks you to send payment to them or an investment
    platform in cryptocurrency.
  • You embark on an online romantic relationship, and your love interest guarantees profits or big
    returns if you invest with them.
  • A romantic interest reaches out to you through an online messaging application like WhatsApp
    with account numbers so you can transfer of funds.

If you or someone you know is a victim of pig-butchering, please contact local law enforcement or one of CI’s 20 field offices.

CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining more than a 90% federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.

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