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Fraudsters engaging in “pig butchering” schemes have begun to actively utilize harmful DeFi applications, which facilitate the theft of funds from inexperienced users.
Sean Gallagher, Principal Threat Researcher at Sophos X-Ops, released a report detailing “pig butchering” scams that involve decentralized finance (DeFi). The researcher indicates that this method of misleading “investors” is among the fastest expanding categories of online scams globally.
The expert highlights that cryptocurrency is more attractive to criminals than fiat currency, as it is cross-border, allows for rapid fund receipt, and offers numerous avenues for subsequent laundering. Additionally, DeFi technologies enable scammers to bypass intricate social engineering tactics and utilize counterfeit DeFi platforms to deceive inexperienced Web3 users.
“Pig butchering” refers to a scam tactic where a victim is gradually drawn into a friendship or romantic relationship to build trust. Eventually, the victim is presented with a tempting investment opportunity, which ultimately proves to be fraudulent. After the victim “invests” their funds, the “butchering” occurs — the funds vanish, and communication is severed. Similar schemes are prevalent in the online dating sector.
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DeFi applications simplify deception for scammers:
- they do not require victims to download separate mobile applications;
- users can access malicious pages within legitimate apps;
- victims are not required to transfer funds from their personal wallets, which preserves the illusion of control until the very end.
Victims typically link their wallets to a decentralized “pension fund” or “liquidity pool” set up by scammers, leading to total financial loss. According to Sophos X-Ops, the “DeFi Savings” scam toolkit was identified across 300 different domains.
The Singapore police recently voiced concerns regarding the rising incidence of cybercrime and published the most common methods of cryptocurrency theft, outlining strategies to combat them.
Сообщение DeFi Products Increasingly Featured in “Pig Butchering” Scams появились сначала на CoinsPaid Media.
