Greg's Corner

Victim loses $90K in new version of infamous crypto scam

By Greg Collier

One of the more egregious scams that has proliferated in the past year or so is the so-called pig butchering scam. It’s known as the pig butchering scheme due to the way scammers ‘fatten up’ their targets through emotional manipulation before ultimately guiding them to the financial slaughterhouse.

Typically, pig butchering scams are a form of the romance scam. Once trust is established, scammers persuade their victims to invest in cryptocurrency. They steer the victims towards a fraudulent cryptocurrency exchange under their control, creating the illusion of rapid investment growth. However, when the victims attempt to withdraw their alleged profits, they are informed that additional payments are required before they can access their earnings. Regardless of the amount paid, the victims never receive any returns.

However, more recently, a man from Missouri recently lost $90,000 to a similar scam except no romance was involved. The man had been successful investing in the stock market and wanted to get a jump on the next wave of investing. It was his belief that AI would be the next hot ticket in the investment market. So, he took an online class he thought was using Elon Musk’s Quantum AI technology to predict the stock market.

The instructor of the class told his students the stock market was about to crash, and suggested they should sell their investments and invest the money into a cryptocurrency exchange. This is where the usual pig butchering takes place, and this story is no exception.

After the Missouri man invested his $90,000 into the crypto exchange, he was told his investment garnered him a $2.5 million windfall. When the man tried to get his money out of the exchange, they told him he would need to upgrade to VIP status to withdraw his profits, and that would cost another $50,000. That $50,000 application fee couldn’t be taken out of his profits either, he would have to wire an additional $50,000. That’s when the man realized he had been scammed.

While online investment classes can provide valuable education and insights into financial markets, there are potential dangers associated with them. Some online investment classes could be fronts for scams or fraudulent schemes. Participants may be persuaded to invest in fake or non-existent opportunities, resulting in financial loss.

Unlike traditional financial institutions and educational programs, online investment classes might not be subject to the same level of regulatory oversight. This makes it easier for unscrupulous individuals to take advantage of unsuspecting participants.

Some classes may create a sense of urgency to invest quickly or capitalize on time-limited opportunities. This pressure can lead participants to make impulsive decisions without proper research or consideration.

To mitigate these risks, individuals interested in online investment classes should thoroughly research the course provider, check for reviews and testimonials, and approach any promises of guaranteed returns with skepticism. Additionally, seeking education from reputable financial institutions, universities, or well-known industry experts may offer a more secure learning experience.