IRS Says US Taxpayers Are the Most Targeted for Pig Butchering Crypto Scams

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The Internal Revenue Service (IRS) has issued a warning about pig butchering cryptocurrency scams. IRS Criminal Investigation special agents stressed that these schemes are popping up across the globe, emphasizing: “U.S. taxpayers are currently the most targeted population for pig butchering schemes.”

IRS’ Pig Butchering Crypto Scam Warning

The Internal Revenue Service (IRS) issued a warning regarding pig butchering crypto scams on Monday during the International Fraud Awareness Week. The U.S. tax authority wrote:

IRS Criminal Investigation (CI) special agents are seeing pig butchering schemes pop up across the globe.

CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, and identity theft.

The IRS explained: “Flirtatious strangers use social media to lure unsuspecting romantic partners, who serve as the ‘pigs,’ to invest in cryptocurrency trading platforms. When victims attempt to cash out, criminals seize their funds.”

CI Chief Jim Lee commented: “Cryptocurrency scammers have become more sophisticated with their schemes. It’s a shame to watch people hopelessly invest their savings in crypto and earn returns on their deposits — to never see the money again.”

The IRS noted: “Thus far, the highest identified loss in one of these schemes is $2 million, but average losses are hundreds of thousands of dollars.” Warning that “If you meet someone on a dating website or app and they urge you to invest in crypto, it is likely a scam,” the tax agency stated:

CI investigators warn that U.S. taxpayers are currently the most targeted population for pig butchering schemes.

The Federal Bureau of Investigation (FBI) has repeatedly warned about pig butchering scams. In August last year, U.S. authorities said that this type of scam is becoming alarmingly popular. In April this year, the U.S. Department of Justice (DOJ) seized cryptocurrency worth $112 million in a pig butchering scam crackdown. U.S. authorities have also seized domains used in these schemes.

What do you think about the warning by the IRS about pig-butchering crypto scams heavily targeting U.S. taxpayers? Let us know in the comments section below.