EL SEGUNDO, Calif. — California Attorney General Rob Bonta warned Californians on Monday of the proliferation of fraudulent cryptocurrency websites, which are sometimes referred to as pig-butchering scams.
Bonta also vowed to continue to protect consumers from scams, which are often carried out by international scammers who are difficult to prosecute and arrest.
Bonta also announced in a news release the shutting down of 42 fake crypto websites by the California Department of Justice that scammed innocent victims out of at least $6.5 million. Each victim lost an average of $146,306.
“As scammers grow increasingly sophisticated and calculated, so must our enforcement,” Bonta said. “Scammers can use deception and emotional manipulation to take advantage of people looking for connection. While there is much work to be done, I want to take a moment to celebrate the hard work of my team, who took action to protect consumers by shutting down 42 fake cryptocurrency websites last year. I would also like to thank our state partners at the Department of Financial Protection and Innovation for their collaboration. I urge Californians to be vigilant and protect their finances: Do not send money to anyone you have never met in person.”
In a pig-butchering scheme, a victim receives a random text or message on social media and builds trust with the scammer. Then they are directed to a website to invest money that at first, will show their investment rapidly increasing. Eventually, when victims try to withdraw their funds, they won’t receive anything and the scammers will walk away with their money.
The DOJ has identified 10 red flags that Californians should watch out for, including:
- Impossible rates of return
- No contact information
- The use of stolen or borrowed images
- The use of stolen dialog and written content
- Address does not exist or is a bad location
- The offer prizes or bonuses
- Inconsistent phone numbers and addresses
- Websites tha have not been recently updated
- Bad grammar and translation
- Not on industry listings of exchanges such as CoinMarketCap.com
Those who believe they have been a victim of a scam, are asked to report the incident to local law enforcement agency and the following agencies:
Yazmin Cruz - Senior Digital Producer
Yazmin Cruz is a senior digital producer at Spectrum News 1 SoCal. She writes, edits, and produces news stories, while also curating the Spectrum News app. Yazmin graduated from California State University, Northridge with a degree in Journalism and minor in Spanish Language Journalism. She's worked in print and digital media covering breaking news, including the Thomas and Woolsey fires, Montecito mudslides, Borderline shooting, and more.
