Investment scams are one of the most common types of scams reported in the last year to the FBI’s Internet Crime Complaint Center, IC3. Nationally, investment fraud losses totaled $4.57 billion in 2023, with $3.96 billion of those losses tied to cryptocurrency.

Here in Maryland, 886 people reported losing $84.2 million dollars to investment scams, with most of that ($74.5 million) tied to cryptocurrency. Of note, these losses only reflect the people who realized they were scammed and then made reports to IC3. Unfortunately, actual losses are likely much greater.

These scams entice victims with the promise of lucrative returns on their investments. The FBI Baltimore Field Office is warning the public to be aware of how these schemes work so they can take measures to protect themselves.

The term “pig butchering” comes from a Chinese phrase “Sha Zhu Pan,” which refers to fattening a pig before slaughter. Victims are often contacted by text message, social media apps, even professional networking sites by strangers whose messages are often meant to appear accidental and meant for someone else. Criminals use fictitious identities to develop trusting relationships, sometimes romantic in nature.

Once they gain a victim’s trust, criminals introduce the topic of cryptocurrency and claim to have expertise, or to know an expert, who can help potential investors achieve financial success. Criminals then convince victims to use fraudulent websites or apps, controlled by the criminals, to invest in cryptocurrency. Criminals coach victims through the investment process, show them fake profits, and encourage victims to invest more. When victims attempt to withdraw their money, they are told they need to pay a fee or taxes. Victims are unable to get their money back, even if they pay the imposed fees or taxes.

If you believe you or someone you know may be a victim of a cryptocurrency scam, immediately submit a report to the FBI Internet Crime Complaint Center at www.ic3.gov or contact the FBI Baltimore Field Office and provide as much transaction information as possible. Be wary of anyone claiming they can recover your funds as this may be another scam.

The most important information you can provide are transaction details. Transaction details include cryptocurrency addresses, amount and type of cryptocurrency, date and time, and transaction ID (hash). These unique identifiers vary in length and look like long strings of random letters and numbers.

If you are unsure whether transaction information you have is relevant, please include it. Provide any other information you may have about the scam, to include:

This table shows examples of important transaction details.

Cryptocurrency Addresses: 0x58566904f57eac4E9EDd81BbC2f877865ECd35985

Amount and Cryptocurrency Type: 1.02345 ether

Dates/Times: 1 January 2023, 12:01 AM EST

Transaction ID (hash): 0xfa485de419011ceefdd3cd00a4ff64e52bf9a0dfa528e4fff8bb4c9c