WhatsApp has removed more than 6.8 million accounts
reportedly linked to a global network of scams known as “pig butchering” or
“romance baiting.” These scams often begin with unsolicited messages, followed
by efforts to build trust with victims before defrauding them.
Scammers have also used AI tools like ChatGPT to generate
messages and later shifted conversations to Telegram to carry out the fraud.
Crypto Scams Surpass $60 Billion in Reported Losses
“WhatsApp’s removal of millions of scam accounts shows
tech platforms are finally tackling scams that combine romance and investment
fraud. Victims suffer both emotional and financial losses, often after months
or years of manipulation, making this one of the most damaging forms of fraud,” Jonathan Frost, Director of Global Advisory for EMEA at BioCatch, commented.
While pig butchering schemes often begin with romance-like
communication, they differ from traditional romance scams by leading victims
into fake investment platforms.
A recent study reviewed 236 major cryptocurrency scam cases.
The findings showed total losses exceeding $60 billion. Fraudulent trading
platforms were the most common, with 112 cases. Romance
scams followed with 46 incidents. Pig butchering schemes accounted for 39 cases.
Use of AI Tools in Scam Operations
One documented case involved the misuse of AI tools.
Scammers reportedly used OpenAI’s ChatGPT to write initial contact messages.
These messages included a link that led victims to a WhatsApp conversation.
“It’s clear that while the criminals are coordinated and
tech-enabled, our response is still fragmented and reactive. The Global
Anti-Scam Alliance estimates that over US$1 trillion globally was stolen by
scammers in 2024 alone,” Silvija Krupena, Director of the Financial
Intelligence Unit at RedCompass Labs said.
You may find it interesting at FinanceMagnates.com: Scammers
Pose as Banks in Instagram Ads to Trap Investors via WhatsApp, FSMA Warns.
Shifting Victims to Telegram and Showing Fake Profits
From there, victims were moved to Telegram, where they were
asked to complete small tasks, such as liking TikTok videos. The scammers then
displayed fake earnings to gain the victim’s trust. Victims were eventually
asked to deposit real money into a crypto account, resulting in financial loss.
“Banks can protect their customers by using advanced
behavioural analytics to spot subtle fraud. Only coordination among banks,
regulators, tech platforms, and consumers can stop this large-scale crime
before more people are harmed,” Frost added.
This article was written by Tareq Sikder at www.financemagnates.com.
