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HomeEntertainmentSilicon Valley tech employee loses over $1.3 million in crypto scam: Report

Silicon Valley tech employee loses over $1.3 million in crypto scam: Report

A new cryptocurrency fraud involving millions of dollars in losses is emerging in the Bay Area of the United States, specifically targeting Silicon Valley investors by gaining control of their mobile devices without even the knowledge of the victim. These scams are termed Pig butchering. 

Cryptocurrency Frauds reported

The scope of the fraud is unknown at this time, but at least two individuals have been found, with a total loss of almost $2.5 million in life savings. Notably, one of the victims is a Silicon Valley technology employee who lost around $1.3 million of retirement savings in the scam. 

Pig butchering process

In another word, Pig butchering is a crypto fraud in which victims are encouraged to deposit funds into an account, basically fattening it up, before vanishing with enormous sums of bitcoin. It starts with infecting the victim’s phone through conversations on online dating or social networking sites, with criminals creating a fictitious connection and encourages the victim to work in crypto. Then, the fraudsters provide the victim a link which looks like a reputable cryptocurrency trading software or platform. However, once the program is downloaded, the fraudsters have access to their victims’ devices. Once the target’s phone has been infected, the virus may access the victim’s personal data. In the process before targeting a person, fraudsters research their targets.

How the fraudster’s success

As per information from financial analysts in the United States Secret Service, these application links from fraudsters look really appealing and pretty convincing. Some of those sites looks similar to Apple Program Store, complete with ratings information. In certain situations, the fraudulent investment sites even provide customer support helplines. However, the victims wind up talking with the fraudsters directly. Some examples of these fake apps are CoinBaseBIT and Kraken, which are copying legitimate crypto-trading companies

How to avoid crypto scams

Individuals must avoid downloading software from links supplied over WhatsApp and text messages, instead focusing on legitimate channels such as the App Store and Google Play. 

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