As digital technology continues to change the way we handle money, Decentralized Finance (DeFi) has emerged as a fast-growing trend. DeFi allows people to send, receive, and invest money online without traditional banks or financial middlemen. While this new system offers exciting opportunities, it also opens the door for scammers—especially in areas as critical as healthcare.
DeFi is short for decentralized finance, a system built on blockchain technology. Unlike banks, DeFi platforms are not regulated or overseen by any central authority. This means anyone, anywhere in the world, can move large amounts of money anonymously.
While this can be convenient, it also means that fraudsters can operate without being easily tracked, making it harder for law enforcement to catch them—or recover the stolen funds.
Although there haven’t been any public cases in the U.S. (as of July 2025) linking DeFi platforms directly to healthcare fraud, scammers are already using this technology to prey on people looking for affordable medical care or quick investment opportunities.
Because DeFi systems are anonymous and decentralized, once the scammer is gone, it’s nearly impossible to recover your money.
One particularly dangerous tactic is called a “pig butchering” scam. Here’s how it works:
Even though many DeFi scams don’t directly involve medical fraud, they highlight the danger for patients and caregivers searching for low-cost healthcare or investment opportunities tied to medical advancements. The mix of emotional vulnerability and financial pressure makes people easy targets.
You don’t need to be a DeFi expert to stay safe. Here are a few simple rules to follow:
Scams using DeFi are still evolving. As this technology grows, so will the creativity and complexity of the frauds. That’s why it’s important to stay informed and cautious.
Next blog: On Catching Crypto Scammers
