IRS Criminal Investigation special agents have seen an uptick in a specific type of scheme that couples cryptocurrency with romance, and they have a message for taxpayers: Don’t get butchered.
Referred to as “pig butchering,” this scheme involves flirtatious strangers who use social media to lure unsuspecting romantic partners, who serve as the “pigs,” to invest in crypto trading platforms. When victims attempt to cash out, the scammers seize their funds.
IRS-CI investigators say U.S. taxpayers are currently the most targeted population for pig butchering schemes. So far, the highest identified loss in one of these schemes is $2 million, but average losses are in the hundreds of thousands of dollars. Recognize the red flags.