In a recent government hearing, lawmakers addressed the alarming rise of confidence scams, commonly referred to as \"pig butchering,\" which have surged since the COVID-19 pandemic. These scams exploit trust, often developing over weeks or months through seemingly innocuous communications, such as text messages or social media interactions. Scammers impersonate individuals to build relationships, ultimately convincing victims to invest in fraudulent cryptocurrency schemes.

The hearing highlighted the sophisticated tactics employed by scammers, who never directly ask for money but instead guide victims to send funds to fake platforms designed to appear legitimate. Victims, often lulled into a false sense of security, may initially send small amounts, only to be pressured into liquidating their savings and retirement funds. The scams have reportedly generated a staggering $75 billion for criminal organizations, particularly those based in Southeast Asia, from January 2020 to February 2024.

Witnesses at the hearing emphasized the devastating financial impact on victims, many of whom are left destitute, having emptied their bank accounts or taken out loans to invest in these fraudulent schemes. The Federal Trade Commission reported over 2.6 million fraud complaints in 2023, with losses exceeding $10 billion, a figure believed to be significantly understated due to underreporting.

Lawmakers underscored the urgent need for increased public awareness and education regarding these scams, as many victims feel embarrassed and reluctant to come forward. The hearing served as a critical first step in addressing this pervasive issue, with calls for a coordinated response from state, local, and federal authorities to combat the growing threat of confidence scams.