Latest news with #ShanHanes
The Sun
15-07-2025
- The Sun
Warning over horrifying swindle carried out by cyber gangs who raid people's bank accounts
BRITS have been warned over a horrifying swindle carried out by gangs of cyber criminals who raid people's bank accounts. The devastating con is usually carried out by Chinese organised crime groups who have been estimated to have stolen billions of dollars from victims worldwide. 2 So-called 'pig butchering' is where scammers established fake romantic and trusting relationships with victims before luring them into fraudulent investments or other financial traps. In 2023, Shan Hanes, a banker from Kansas, US, embezzled £34.6million from his bank to cover his losses, having fallen victim to a pig butchering scam. Hanes was later sentenced to more than 24 years behind bars. Usually, a pig butchering scam works in three stages – hunting, raising and killing. This involves a scammer finding a victim online, chatting to them in order to build up trust and then getting them to invest large amounts of money into fraudulent schemes. The scam works in a similar way to a traditional romance scam, where scammers approach their victims by posing as a possible romantic partner on a dating app, or as a friend via social media. The big difference though is how the scam is executed. With a romance scam, trust is based on the victim's urge to maintain a romantic relationship with the scammer. In this scenario, the scam can often last for years. Pig butchering scams though, in comparison, generally take place over a much shorter time period. Interview with Richard Foster who is a ransomware negotiator The scammer, rather than focusing on trying to extract money through emotional manipulation, leans more on the victim's desire to make money together with the scammer. This can involve just a few months rather than years to take advantage of the victim. Usually, the scammer will present themselves as being financially successful and confident with a broad network and have appealing investment opportunities. Once the victim has made an initial small investment, the scammer will then try to escalate the process and push them into making a much larger financial commitment, reports. In 2024, Jacqueline Crenshaw, from Connecticut, US, met a man on an online dating site. He posed as a widower with two children and regularly chatted to Crenshaw on the phone. In just two months, they started talking about investing in cryptocurrency. She sent him $40,000 (£29,500) at first and received screenshots from him showing supposedly huge profits from the investment. Crenshaw was then encouraged to invest much more and it ultimately led to her losing almost $1 million (£738,000). Highly organised criminal gangs are thought to run these pig butchering scams with them using management teams who provide training to new recruits and even hire people as models who can interact with the victim. The Chinese government has taken a number of measures in order to try to stamp out the fraud. The Anti-Telecom Fraud Act was introduced in 2022 which was aimed at specifically preventing and punishing the use of telecommunications and internet technologies to defraud individuals and organizations. The Chinese Ministry of Public Security has also launched the National Anti-Fraud Centre App. This app allows the public to report scams and access real-time risk alerts relating to fraud. Along with the work of other government departments, it has helped intercept 4.7billion scam calls and 3.4billion fraudulent text messages since the start of 2024. The crackdown by the Chinese authorites has made it more difficult for criminal groups to operate in the country, leading many criminals to relocate abroad with South-East Asian countries – mainly Cambodia, Laos and Myanmar – being their chosen destination. The collapse of the illegal online gambling industry in the region following the Covid pandemic has led criminal gangs to look for new sources of revenue. Estimates of the profits made from online scams amount to around 40 percent of the combined GDP of Cambodia, Laos and Myanmar. The leaders of the criminal gangs often operate from tightly controlled compounds which act as hubs for online scams, with their primary focus on pig butchering. These compounds are usually presented as being 'technology parks' which help recruit workers. However, many people are forced into working for the scammers. While pig butchering can inflict severe financial hardship on the victims, the crime gangs are often also closely tied with violent crime, human trafficking as well as other forms of organised criminal behaviour. 2
The Irish Sun
15-07-2025
- Business
- The Irish Sun
Warning over horrifying swindle carried out by cyber gangs who raid people's bank accounts
BRITS have been warned over a horrifying swindle carried out by gangs of cyber criminals who raid people's bank accounts. The devastating con is usually carried out by Chinese organised crime groups who have been estimated to have stolen billions of dollars from victims worldwide. Advertisement 2 Chinese cyber criminals are believed to be mainly behind 'pig butchering' scams (stock image) Credit: Getty So-called 'pig butchering' is where scammers established fake romantic and trusting relationships with victims before luring them into fraudulent investments or other financial traps. In 2023, Shan Hanes, a banker from Hanes was later sentenced to more than 24 years behind bars. Usually, a pig butchering scam works in three stages – hunting, raising and killing. Advertisement Read More on Technology This involves a scammer finding a victim online, chatting to them in order to build up trust and then getting them to invest large amounts of money into fraudulent schemes. The scam works in a similar way to a traditional romance scam, where scammers approach their victims by posing as a possible romantic partner on a dating app, or as a friend via social media. The big difference though is how the scam is executed. With a romance scam, trust is based on the victim's urge to maintain a romantic relationship with the scammer. Advertisement Most read in Tech In this scenario, the scam can often last for years. Pig butchering scams though, in comparison, generally take place over a much shorter time period. Interview with Richard Foster who is a ransomware negotiator The scammer, rather than focusing on trying to extract money through emotional manipulation, leans more on the victim's desire to make money together with the scammer. This can involve just a few months rather than years to take advantage of the victim. Advertisement Usually, the scammer will present themselves as being financially successful and confident with a broad network and have appealing investment opportunities. Once the victim has made an initial small investment, the scammer will then try to escalate the process and push them into making a much larger financial commitment, In 2024, Jacqueline Crenshaw, from He posed as a widower with two children and regularly chatted to Crenshaw on the phone. Advertisement In just two months, they started talking about investing in cryptocurrency. She sent him $40,000 (£29,500) at first and received screenshots from him showing supposedly huge profits from the investment. Crenshaw was then encouraged to invest much more and it ultimately led to her losing almost $1 million (£738,000). Highly organised criminal gangs are thought to run these pig butchering scams with them using management teams who provide training to new recruits and even hire people as models who can interact with the victim. Advertisement The Chinese government has taken a number of measures in order to try to stamp out the fraud. The Anti-Telecom Fraud Act was introduced in 2022 which was aimed at specifically preventing and punishing the use of telecommunications and internet technologies to defraud individuals and organizations. The Chinese Ministry of Public Security has also launched the National Anti-Fraud Centre App. This app allows the public to report scams and access real-time risk alerts relating to fraud. Advertisement Along with the work of other government departments, it has helped intercept 4.7billion scam calls and 3.4billion fraudulent text messages since the start of 2024. The crackdown by the Chinese authorites has made it more difficult for criminal groups to operate in the country, leading many criminals to relocate abroad with South-East Asian countries – mainly The collapse of the illegal online gambling industry in the region following the Covid pandemic has led criminal gangs to look for new sources of revenue. Estimates of the profits made from online scams amount to around 40 percent of the combined GDP of Cambodia, Laos and Myanmar. Advertisement The leaders of the criminal gangs often operate from tightly controlled compounds which act as hubs for online scams, with their primary focus on pig butchering. These compounds are usually presented as being 'technology parks' which help recruit workers. However, many people are forced into working for the scammers. While pig butchering can inflict severe financial hardship on the victims, the crime gangs are often also closely tied with violent crime, human trafficking as well as other forms of organised criminal behaviour. Advertisement 2 A pig butchering scam usually works in three stages – hunting, raising and killing Credit: Getty
Scottish Sun
15-07-2025
- Scottish Sun
Warning over horrifying swindle carried out by cyber gangs who raid people's bank accounts
The scam works in a similar way to a traditional romance scam BE AWARE Warning over horrifying swindle carried out by cyber gangs who raid people's bank accounts Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) BRITS have been warned over a horrifying swindle carried out by gangs of cyber criminals who raid people's bank accounts. The devastating con is usually carried out by Chinese organised crime groups who have been estimated to have stolen billions of dollars from victims worldwide. Sign up for Scottish Sun newsletter Sign up 2 Chinese cyber criminals are believed to be mainly behind 'pig butchering' scams (stock image) Credit: Getty So-called 'pig butchering' is where scammers established fake romantic and trusting relationships with victims before luring them into fraudulent investments or other financial traps. In 2023, Shan Hanes, a banker from Kansas, US, embezzled £34.6million from his bank to cover his losses, having fallen victim to a pig butchering scam. Hanes was later sentenced to more than 24 years behind bars. Usually, a pig butchering scam works in three stages – hunting, raising and killing. This involves a scammer finding a victim online, chatting to them in order to build up trust and then getting them to invest large amounts of money into fraudulent schemes. The scam works in a similar way to a traditional romance scam, where scammers approach their victims by posing as a possible romantic partner on a dating app, or as a friend via social media. The big difference though is how the scam is executed. With a romance scam, trust is based on the victim's urge to maintain a romantic relationship with the scammer. In this scenario, the scam can often last for years. Pig butchering scams though, in comparison, generally take place over a much shorter time period. Interview with Richard Foster who is a ransomware negotiator The scammer, rather than focusing on trying to extract money through emotional manipulation, leans more on the victim's desire to make money together with the scammer. This can involve just a few months rather than years to take advantage of the victim. Usually, the scammer will present themselves as being financially successful and confident with a broad network and have appealing investment opportunities. Once the victim has made an initial small investment, the scammer will then try to escalate the process and push them into making a much larger financial commitment, reports. In 2024, Jacqueline Crenshaw, from Connecticut, US, met a man on an online dating site. He posed as a widower with two children and regularly chatted to Crenshaw on the phone. In just two months, they started talking about investing in cryptocurrency. She sent him $40,000 (£29,500) at first and received screenshots from him showing supposedly huge profits from the investment. Crenshaw was then encouraged to invest much more and it ultimately led to her losing almost $1 million (£738,000). Highly organised criminal gangs are thought to run these pig butchering scams with them using management teams who provide training to new recruits and even hire people as models who can interact with the victim. The Chinese government has taken a number of measures in order to try to stamp out the fraud. The Anti-Telecom Fraud Act was introduced in 2022 which was aimed at specifically preventing and punishing the use of telecommunications and internet technologies to defraud individuals and organizations. The Chinese Ministry of Public Security has also launched the National Anti-Fraud Centre App. This app allows the public to report scams and access real-time risk alerts relating to fraud. Along with the work of other government departments, it has helped intercept 4.7billion scam calls and 3.4billion fraudulent text messages since the start of 2024. The crackdown by the Chinese authorites has made it more difficult for criminal groups to operate in the country, leading many criminals to relocate abroad with South-East Asian countries – mainly Cambodia, Laos and Myanmar – being their chosen destination. The collapse of the illegal online gambling industry in the region following the Covid pandemic has led criminal gangs to look for new sources of revenue. Estimates of the profits made from online scams amount to around 40 percent of the combined GDP of Cambodia, Laos and Myanmar. The leaders of the criminal gangs often operate from tightly controlled compounds which act as hubs for online scams, with their primary focus on pig butchering. These compounds are usually presented as being 'technology parks' which help recruit workers. However, many people are forced into working for the scammers. While pig butchering can inflict severe financial hardship on the victims, the crime gangs are often also closely tied with violent crime, human trafficking as well as other forms of organised criminal behaviour.
Yahoo
20-06-2025
- Business
- Yahoo
DOJ Ties Kansas Bank Collapse to $225 Million 'Pig Butchering' Seizure
A Kansas banker who looted millions from his small-town bank in 2023, which triggered its collapse, lost much of the money to overseas crypto scammers targeted in a record-breaking DOJ bust, according to a complaint filed Wednesday. Prosecutors have filed a civil forfeiture action targeting over $225 million in laundered USDT, part of a butchering scam with ties to a Philippines call center that ensnared Shan Hanes, the disgraced former CEO who embezzled $47 million from Heartland Tri-State Bank, a theft which was directly attributed to the agricultural lender's demise in 2023. According to the Department of Justice complaint, OKX, a crypto exchange, provided key information that helped identify an intricate network of accounts on the exchange used to launder the crypto proceeds. Scammers laundered funds by first directing victims to send USDT to 93 scam-controlled deposit addresses. From there, the funds were routed through as many as 100 intermediary wallets in a process designed to obscure the source of funds and mix deposits from multiple victims, according to the complaint. These laundered funds were then funneled into 22 primary OKX accounts and further shuffled across 122 additional OKX accounts, all linked by shared IP addresses, reused KYC documents, and coordinated behavior allegedly traced to a Manila-based scam compound, which the complaint names as ITECHNO Specialist Inc. In total, the DOJ says that approximately $3 billion in transaction volume was generated by this laundering network. In total, the DOJ says there were 434 victims and has identified 60 of them who lost a combined $19.4 million. The largest of these victims was Hanes, with the DOJ identifying $3.3 million of the $47 million he embezzled in this seizure. Hanes embezzled the money between May 30, 2023, and July 7, 2023, according to both the DOJ complaint and the Federal Reserve's report into the collapse of Heartland Tri-State Bank, one of the banks to collapse in the aftermath of the 2023 U.S. banking crisis. During this six-week period, Hanes initiated 10 wire transfers totaling approximately $47.1 million from Heartland Tri-State Bank, a small community lender focused on agricultural loans, to a crypto wallet he controlled. These wire transfers occurred between the bank's quarterly regulatory reporting periods, allowing the activity to go initially undetected. At the time, Heartland was well-capitalized with $13.7 million in capital and $139 million in assets, but Hanes' actions depleted its liquidity, triggered $21 million in emergency borrowing, and left the bank with a $35 million capital hole, forcing regulators to shut it down in July 2023. According to prior reporting from CNBC, Hanes also stole $40,000 from the Elkhart Church of Christ, $10,000 from the Santa Fe Investment Club, $60,000 from his daughter's college fund, and liquidated nearly $1 million in stock from a firm called Elkhart Financial to send to pig butchering scammers. He was sentenced to 24 years in prison in August 2024. The DOJ complaint referred to him as both a perpetrator and a victim. Crypto seized by the U.S. government, such as in this case, is likely to be earmarked for a not-yet-established stockpile ordered by President Donald Trump. The bitcoin BTC reserve and the stockpile of other cryptocurrencies haven't yet been formally established, but the Treasury Department has been leading an audit of governmental digital asset holdings to determine what needs to be gathered. Once established, the long-term crypto holdings will likely put seized bitcoin in one fund and other types of tokens in another. The holdings in this case appear to be in significant amounts of USDT, according to the filing. It's unclear what funds may eventually be returned to victims, as only a relatively small percentage of those directly harmed have been identified.
Yahoo
19-06-2025
- Yahoo
Feds seize $225 million in crypto from crooks who ran giant ‘pig butchering' operation
The Department of Justice on Wednesday asked a court to let the agency seize $225 million from a so-called 'pig butchering' operation—a term that describes scams where con men build up the trust of a victim over time, and then trick them into handing over large amounts of money. The funds, which the crooks held in USDT stablecoins, were laundered through the crypto exchange OKX, according to Justice Department. This is the U.S.'s largest ever seizure of funds tied to crypto confidence schemes, said the agency. While prosecutors didn't name one perpetrator in the complaint, they did say the funds were linked to a 'scam compound' in the Philippines. These locales usually house scores of workers who labor in shifts to lure victims into parting ways with their crypto, like Bitcoin, or cash. Many of these workers are employed by transnational criminal rings and forced to work against their will, according to the United Nations. The DOJ was able to identify more than 430 victims tied to the 144 OKX accounts through which victims' funds were laundered. One of these victims was Shan Hanes, the former CEO of Heartland Tri-State Bank in Kansas. In August 2024, Hanes was sentenced to 24 years in prison for stealing $47 million of his bank's funds to invest in what he thought was a cryptocurrency investment opportunity that turned out to be a scam. 'These schemes harm American victims, costing them billions of dollars every year,' Matthew Galeotti, head of the DOJ's criminal division, said in a statement. Losses from cryptocurrency scams have accelerated in the U.S. over the past five years, according to the most recent annual report on internet crime from the Federal Bureau of Investigation. From 2023 to 2024, the money Americans lost skyrocketed 66% to $9.3 billion and the number of complaints the agency received more than doubled to nearly 150,000, said the government agency. The most common crime linked to cryptocurrencies was extortion, or when bad actors manipulate photos or videos to create explicit content and lure victims into sending crypto. The second most common type was investment fraud, or when criminals promise victims outsized returns if they send them money. This latter category includes Hanes, the former bank CEO. 'He was the pig that was butchered,' wrote his lawyer at the time of his sentencing. 'Mr. Hanes's vulnerability to the Pig Butcher scheme caused him to make some very bad decisions, for which he is truly sorry for causing damage to the bank and loss to the Stockholders.' This story was originally featured on
