515 | Cyber Security Update: Social Engineering & Pig Butchering
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Deep Dive
What is 'Pig Butchering' and how does it work in the context of investment scams?
Pig Butchering is a type of investment scam where scammers build a relationship with the victim, often through social engineering, and then convince them to invest in a fake platform. The scammer shows the victim their investments growing on the platform, but the money is actually gone. Once the victim tries to withdraw, the scammer demands additional fees, leading to further losses.
Why are younger people also susceptible to investment scams like Pig Butchering?
Younger people, especially those interested in high returns, are susceptible to investment scams because they may be looking for quick wealth and are less experienced in recognizing fraudulent schemes. Scammers often promise unrealistic returns, like 50% or more, which can be very appealing to a younger, less risk-averse demographic.
What are some initial touch points scammers use to start a Pig Butchering scam?
Scammers often start with random text messages, dating apps, social media profiles, or fake job offers. They may also use real estate leads or impersonate celebrities to initiate contact and build a relationship with the victim.
How do scammers use AI and deepfakes in their scams?
Scammers use AI to create deepfakes, such as using someone's voice to make it sound like they are making investment recommendations or urgent requests. This can be particularly effective in convincing victims who recognize the voice, such as family members or trusted contacts.
What are some actionable steps to protect yourself from becoming a victim of investment scams?
To protect yourself, never click on unsolicited links, verify information through official channels, and avoid sending money to people you meet online. Use reputable investment platforms and never invest based on unsolicited advice. Additionally, talk to friends and family about these scams to raise awareness.
What should you do if you or someone you know falls victim to a scam?
If you or someone you know falls victim to a scam, report it immediately to the local police and the Internet Crime Complaint Center (IC3) at ic3.gov. Do not trust recovery companies that ask for upfront fees, as many are scams themselves. Law enforcement is the best resource for potential restitution.
Why is it important to talk to your friends and family about these scams?
Talking to friends and family about scams is crucial because it helps raise awareness and can prevent them from falling victim. Scammers often isolate victims to prevent them from seeking advice, so open conversations can break this isolation and provide support.
What are some red flags to watch out for in investment scams?
Red flags include unsolicited investment offers, promises of high returns with little risk, pressure to act quickly, and requests to use cryptocurrency or Bitcoin ATMs. Scammers often use urgency and emotional manipulation to get victims to send money.
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