(CNS): The RCIPS has said that the Cayman Islands Bureau of Financial Investigation has received dozens of reports from Cayman residents as well as from people overseas involved in crypto-companies registered here that they had been conned out of millions of dollars through what is commonly known as “pig butchering” or a shāzhūpán scam.
In a press release issued Tuesday, the RCIPS warned that victims in the Cayman Islands are being targeted in this sophisticated scam operated by overseas criminal groups.
Answering questions from CNS, the CIBFI said that while these criminals go after people all over the world, the proportion of Cayman Islands victims seems to be higher than average, presumably because of the wealth of individuals living or doing business here and because of the crypto business being conducted in this jurisdiction.
On average, Cayman Islands victims have lost between CI$50,000 and $150,000, with some losing more than a CI$1 million. Overall, millions of dollars have been lost to these criminal gangs, but the investigators suspect that there are more victims who haven’t reported being conned.
“The scam is a type of fraud in which criminals lure victims into digital relationships to build trust before convincing them to invest in cryptocurrency platforms,” the CIBFI stated. “Unbeknownst to victims, the fraudsters control the platforms and will eventually take all the money and vanish.”
Drawing its name from the Chinese phrase shāzhūpán, the scams are usually perpetrated over a long period of time, and combine elements of romance scams, investment schemes, and cryptocurrency fraud. The fraudsters build some form of relationship with their victims — metaphorically fattening the pig. They then deceive them into making investments in fake business ventures and take every penny — the butchering.
Anyone can fall victim to this type of scam. Most victims are working age, between 30 and 60, though recently retired people have also been sucked into the scams, police said. Even police officers, those familiar with investment products, graduate students, engineers, consultant doctors and those working in the virtual currency space have been caught out by these criminals.
“Unlike the stereotypical scam victim, many of them are highly educated and digitally savvy,” the CIFBI officers said.
Unfortunately, very few victims have been able to get any money back. The criminals use a third-party money laundering service to obfuscate and hide the stolen funds within a huge and sophisticated network, turning over billions of dollars before being cashed out, usually to Chinese crime syndicates operating in South East Asia.
The CIBFI is encouraging anyone who thinks they may be engaging in similar online activities to visit the crime prevention page, review the tips and take the necessary steps to prevent any further loss.
People can also call +1(345) 649-4358 to make a report or speak with an investigator in person.
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