Crypto-Scammer Convinces Victim to Hand Over Thousands in Cash at Local Coffee Shop

The Scam Unfolds

A victim of a crypto-scammer lost an undisclosed amount of cash after they agreed to meet the suspect at a local coffee shop earlier this month.

The Initial Contact

The victim was a resident of San Marino, according to the San Marino Police Department.

They became the target of the scammer through Facebook, with the victim telling investigators they were contacted by an unknown woman who claimed to be a “risk management specialist” from Singapore.

The Con

The scammer convinced them to transfer thousands of dollars into an online crypto wallet, a software program that stores the private keys needed for accessing a user’s cryptocurrency.

The victim then withdrew the funds and discovered a “noticeable increase” in value, police said.

The Final Handover

On January 10, convinced that the scheme was legitimate, the victim then agreed to meet a “legitimate currency dealer” at a local coffee shop, bringing with them an even larger sum of cash.

They handed the cash to the scammer, assuming that the value would increase as before, but when they checked the account the following day, the funds had completely disappeared.

The Scam Tactic

It’s a tactic known by federal investigators as a “Pig Butchering Scam,” in which a scammer meets a victim online, often through social media, and builds trust with them over time.

The scammer convinces their victim to invest in cryptocurrency, showing them immediate results, and continuing to encourage them to deposit more and more before ending contact and making off with all of the victim’s funds.

Prevention and Awareness

The California Department of Financial Protection and Innovation is actively tracking cryptocurrency scams and continues to urge consumers to be diligent when discussing online funds, especially with someone you don’t know or have never met in person.

“As an investment, crypto is typically highly risky, and lacks the protections associated with other financial assets such as deposit insurance and the right to error resolution,” DFPI says on its website.

“While there can be some security built into a blockchain system, consumers should be aware of the risks and potential for fraud.”

The Impact

The FBI says Americans lost more than $5.6 billion in crypto scams in 2023.

Conclusion

The case of the victim in San Marino remains under investigation, police said.

FAQs

Q: What is a Pig Butchering Scam?

A: A Pig Butchering Scam is a type of cryptocurrency scam in which a scammer meets a victim online, builds trust, and convinces them to invest in cryptocurrency, showing them immediate results, and then disappears with the funds.

Q: How can I protect myself from cryptocurrency scams?

A: Be cautious when discussing online funds with someone you don’t know or have never met in person. Research the company and individual thoroughly, and never invest more than you can afford to lose.

Q: What should I do if I’ve fallen victim to a cryptocurrency scam?

A: Report the incident to the Federal Trade Commission (FTC) and your local authorities. You can also contact the California Department of Financial Protection and Innovation for assistance.