FinCEN Issues Alert for Financial Institutions on Red Flags for “Pig Butchering” Schemes
Source: JD Supra.
The U.S. Department of Treasury has warned financial institutions about a virtual currency investment scam known as “pig butchering,” which has resulted in billions of dollars in losses for victims. The scam involves scammers luring victims with fictitious identities and elaborate storylines, enticing them to invest in virtual currency with the intent to defraud them. The alert provides an example of a recent seizure of domain names used in a scam, where victims lost over $10 million. FinCEN has identified fifteen red flags for financial institutions to help identify and report suspicious activity related to these scams. Click here to learn more.