You may have heard about the new scam on the block with an unfortunate name. Called “Pig Butchering Scams,” these scams are especially dangerous because they don’t unfold like a typical scam. Instead of putting a potential victim on the spot and demanding payment or information immediately, these scams start small and gain the trust of potential victims over time. By the time the victim realizes what’s going on, they could already have lost a large amount of money. Let’s explore this scam, warning signs to look out for, and what to do if you (or someone you know) falls victim to it.
It’s called what?!
“Pig Butchering” scams have their unfortunate name because scammers “fatten up” a victim to gain their trust before “butchering” them — typically by persuading them to invest large sums of money into a fraudulent investment.”
How does it work?
- The scam starts out small- the scammer contacts a potential victim on social media, random texts, dating websites, and pretends to have contacted them by accident or pretends to be someone they know.
- The scammer then comes up with ways to continue contacting the victim so they can create a relationship.
- The scammer may even try to fake a romantic relationship with the potential victim.
- After a while they may bring up that they made a lot of money through cryptocurrency/Bitcoin– but they do not pressure the victim to invest.
- After some time, the scammer tries to convince the potential victim to invest in cryptocurrency using an app that they recommend. This app or website may look legitimate, but it’s not!
- Eventually the scammer may pressure the victim to invest more money into cryptocurrency.
- Victims may be able to see their returns on the app/website or make small withdrawals, but it’s all fake and the victim is losing money.
Warning Signs
- Random messages or text messages
- A wrong number messaging you multiple times
- Not being able to meet in person or do a video call.
- Asking for payment in cryptocurrency.
- Being told by a “friend” that they have a “can’t lose” proposition.
- Being told you can only use the app/website they recommend.
- Being told you need to pay a percentage in “taxes” (sometimes as much as 20%) before you can withdraw your money from the app/website.
- Click here for more warning signs from the Michigan Attorney General’s Office
- Remember: if something (or someone) seems too good to be true, it probably is!
How to protect yourself
- Tell your loved ones when you hear about a new scam targeting older adults.
- Don’t send payment of any kind to someone you haven’t met in person.
- Don’t share personal information, including financial information, online.
- Don’t mix business and pleasure– if you’re on a dating website or a website for communicating with friends, don’t trust people on there for investing advice.
- Click here for more tips from the Michigan Attorney General’s Office.
What to do if you’re a victim of a pig butchering scam
- The most important thing to do is to report the crime. It can be tempting to just hope this all goes away, or to want to avoid talking out of shame or embarrassment but doing that lets the scammers win. The longer you wait to report, the harder it is to trace your money!
- Report to your bank ASAP
- Contact the cryptocurrency exchange company you used to send the money ASAP and ask if they can reverse the transaction
- Contact the Federal Trade Commission (FTC)
- Contact the Internet Crime Center
- Contact the FBI (Michigan’s main office is in Detroit) or visit www.fbi.gov/cryptoguard
- Contact the MI Department of the Attorney General
- Contact the US Department of Justice at [email protected]
- Important information to include in your report:
- Mention that you’re a victim of the Pig Butchering PSA
- Name of the investment platform you used
- Cryptocurrency address and transaction hashes
- Bank account information
- Names/contact information of suspected scammers
Together we can protect the vulnerable adults in our community.
