Illustration: Aïda Amer/Axios
Federal prosecutors seized seven domain names that cybercriminals used to collect crypto investments, prosecutors said Monday.
Why it matters: This week’s action appears to be the first time federal prosecutors have taken action against operators of a so-called “pig butchering” crypto scam.
The big picture: The FBI estimates that these social-engineering scams resulted in consumers losing more than $429 million in 2021.
- Pig-butchering schemes involve a cybercriminal befriending someone on a social media site, dating app or similar venue and then leveraging that friendship to get a crypto investment in one of their businesses.
- The scam can also start with someone claiming they texted the wrong number and continuing to carry on a conversation anyway.
Details: The U.S. Attorney’s Office for the Eastern District of Virginia seized seven domains used in a scam from May through August that pretended to be the Singapore International Monetary Exchange.
- Five U.S. victims sent a total of more than $10 million to cybercriminals through those links, prosecutors said.
- “The victims’ funds were immediately transferred through numerous private wallets and swapping services in an effort to conceal the source of the funds,” according to a press release.
By the numbers: Overall, victims lose an average of $121,926 during pig-butchering scams, according to the Global Anti-Scam Organisation.
- Roughly two-thirds of all victims are women between the ages of 25 and 40.
- About a third of victims have a graduate degree.
- 41% of victims met the scammer on Facebook, Instagram or WhatsApp.
The intrigue: The growth of pig-butchering scams comes as cybercriminals increasingly focus on social engineering, like hopping on the phone or building trust with victims, in their attacks to lure people into their schemes.
Sign up for Axios’ cybersecurity newsletter Codebook here.
