What are pig butchering scams, and how do they work?
“Pig butchering” scams get their name from the process scammers use. Like fattening up a pig before slaughter, victims are groomed over time through fake online relationships, only to be financially exploited at the end.
Many people have lost a lot through these types of relationships, including their entire life savings and their homes.
Scammers typically initiate contact via social media, dating apps or messaging platforms. They create a friendly or romantic bond, slowly introducing the idea of investing in cryptocurrency. Once trust is gained, the scammer sends the victim a link to a professional-looking, but fake, trading platform — such as NFT-UNI.com in the New York case.
In this instance, the victim was led to believe they were participating in a legitimate crypto investment.
After they transferred money as instructed, the funds — more than $172,000 — were quickly laundered through numerous bank accounts to hide the source, ultimately becoming unrecoverable.
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Learn MoreThe rise of pig butchering scams
Pig butchering scams are on the rise, particularly as cryptocurrency continues to become more mainstream and unregulated.
The FBI’s Internet Crime Complaint Center (IC3) reported that investment scams cost victims more than $3.3 billion in 2022, with cryptocurrency-related schemes representing $2.57 billion — a 183% increase from $907 million the year before. Many of these were pig butchering cases.
Among these cases, older Americans are specifically targeted. The FBI's 2023 Elder Fraud Report noted individuals over 60 experienced losses of $3.4 billion in 2023, an 11% increase from the previous year.
Tips to protect yourself from pig butchering scams
Keep these things in mind to protect yourself — and your aging loved ones — from pig butchering scams.
- Be skeptical of unsolicited online relationships, especially when conversations quickly shift to financial opportunities.
- Verify any investment platform through independent research. If a site isn’t listed on FINRA’s BrokerCheck or doesn’t have verifiable company information, it may be fake.
- Avoid apps or websites recommended by strangers, even if they look professional.
- Never send money or crypto to someone you’ve only met online.
- Consult a financial advisor or cybersecurity expert if you're unsure about an investment opportunity.
- Report suspicious activity to the FTC or local law enforcement immediately.
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