PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Crypto Criminals Ramp Up Pig Butchering Scams

By Tom Nawrocki
December 27, 2024
in Analysts Coverage, Fraud & Security
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
As Online Gambling Legalization Expands, So Do Scams and Regulatory Issues

Pig butchering—a drawn-out process in which criminals gradually entice victims to hand over assets—has become the number one fraud threat for crypto investors.

In 2024, pig butchering scams resulted in $3.6 billion in stolen assets from crypto investors. A report released by Cyvers, a Web 3 security firm, revealed that the most targeted currency in these scams was not bitcoin, the most popular cryptocurrency, but ethereum.

The report also highlighted a 40% increase in cyber threats this year compared to the previous year.

Ethereum is considered particularly vulnerable to such scams. According to separate analysis from Kryptocasinos, ethereum accounted for 18% of all stolen crypto funds in 2024, compared to just 2% for bitcoin.

Ethereum’s blockchain utilizes smart contracts, which automatically carry out transactions without the need for banks, brokers, or other third parties. However, criminals have found ways to create one-time-use smart contracts that are difficult to flag as fraudulent. Since smart contracts are irreversible, there is no way to halt automatic payments once they have been authorized.

The Latest in Scams

In pig butchering, a criminal uses a social media account to convince a victim to invest their money in a fake transaction, often involving crypto. The “pig” gets stuffed over several weeks, watching the apparent growth of their investment, which encourages them to invest even more money.

These types of scams appear to be on the rise. Last year, cybersecurity firm Hacken reported that rug pulls were the most common type of crypto scam, accounting for 65% of all incidents within the crypto ecosystem. A rug pull occurs when a developer promotes a new currency as a lucrative investment opportunity, then disappears, taking investors’ funds along with them.

Social media frequently plays a significant role in these crimes. Last year, Lloyds Bank issued a warning stating that 66% of investment scams are initiated through social media, particularly on Facebook and Instagram.

Everyone Is at Risk

Even the most financially savvy individuals are vulnerable to these scams. In August, the CEO of a Kansas bank pleaded guilty to embezzlement after falling victim to a pig butchering crypto scam. Ultimately, he transferred $47 million of the bank’s assets to the criminals, leading to the bank’s collapse.

Even Mark Cuban, the star of “Shark Tank” and owner of the Dallas Mavericks, admitted to being scammed, losing $870,000 to a crypto fraud after downloading a fake version of MetaMask, a crypto wallet used to manage ethereum-based assets.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: BitcoinCyversEthereumFraud Risk and AnalyticsPig ButcheringRug Pulls

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    digital gift card

    Present and Accounted For: Digital Gift Cards in Incentive Programs

    January 14, 2026
    payments fraud, faster payments fraud

    Faster Payments Demand Faster Fraud Detection

    January 13, 2026
    metal credit card

    Defying Expectations: How a Metal Credit Card Found Its Market

    January 12, 2026
    swift digital assets, banks leveraging geography, PhotoPay stablecoin

    PhotonPay Raises Tens of Millions in Series B to Pioneer Stablecoin-Centric Financial Infrastructure

    January 9, 2026
    payments innovation

    The $7 Trillion Bottleneck: Why Banks Are Paralyzed by Payments Innovation

    January 8, 2026
    Amazon

    Is There a Future for Unattended Retail?

    January 7, 2026
    Walmart Delivers Groceries Direct To Your Fridge

    How the Principles of the Planogram Can Apply to Payments

    January 6, 2026
    merchant security customer engagement AI, IoT impact on retail, machine learning small business loans

    How Bank Websites Can Build Customer Relationships

    January 5, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result