Pig Butchering Scams: Victims May Have Recovery Options
A new scam known as “pig butchering” may have cost victims more than $75 billion, according to a study described in Time. MDF Law is investigating the perpetrators of pig butchering scams, which often lure investors into transferring assets on cryptocurrency exchanges such as Coinbase. If you lost money to scammers, contact us for a free consultation about your recovery options.
What Is Pig Butchering?
As a recent “scam alert” published by the Federal Deposit Insurance Corporation explained, pig butchering scams begin very simply: with a text. In the typical scam, perpetrators contact their victims “out of nowhere,” whether on text messaging apps, dating platforms, or social media. Later, they might transition the conversation to VOIP chat platforms. Either way, they work to build a relationship with the victim, gaining their trust. This is where the name comes from: “the practice,” the FDIC explains, “of fattening a pig before slaughter.”
Once the perpetrator has built a trusting relationship with the victim, they will likely instruct the victim to create accounts on investment platforms. Then, they will urge the victim “to deposit money via wire transfer to shell companies, or direct transfers on legitimate virtual asset service providers (VASPs) or cryptocurrency exchanges,” per the FDIC. Over time, they will pressure their target to invest or send more and more money. They may even threaten to end their relationship if the target refuses. Eventually, they will vanish—and so will their victim’s money.
Red Flags of Pig Butchering
In an alert published in 2022, the Financial Industry Regulatory Authority outlines red flags of pig butchering scams. Among the things investors should look out for:
- Unexpected, out-of-the-blue contact from a stranger. “Never respond to unsolicited messages from unknown contacts,” FINRA cautions, “even about seemingly benign topics.”
- The perpetrator refuses to appear on video. If the person messaging you rejects your efforts to video chat or meet in person, “they likely aren’t the person from the profile photo.”
- The perpetrator asks for your financial information. As a general rule, you should be wary about people you’ve never met asking for your financial information.
- Solicitations to invest in financial products. If the person you’ve been chatting with suddenly starts offering investment advice, they’re probably not acting in your interests. “Always question what a source has to gain from sharing tips with you,” FINRA advises, “and whether the transaction fits with your financial goals and investment strategy.”
- Encouragement to use new trading platforms. The perpetrators of pig butchering scams often encourage their targets to invest or transfer money using unfamiliar platforms and novel cryptocurrencies. In such cases, FINRA recommends asking a few important questions: “Who controls the platform? What security measures are in place? How can you withdraw funds if needed?”
- Exaggerated claims. Once the perpetrator establishes a meaningful relationship with their target, they may lean on that relationship to escalate their con. In addition to making exaggerated claims, like calling an investment a sure thing, they might “appeal to your emotions,” FINRA warns. For instance, if they know that you need money for certain expenses—say, your family—they might bring that up to pressure you.
Targeted by Scammers? Call Our Crypto Attorneys Now
If you’ve been targeted by a pig butchering scam, you may be able to recover lost funds. Contact our law firm for a free consultation about your options. In addition to taking cases on contingency—we only receive a fee if our clients win—we currently offer free consultations across the United States. Call 800-767-8040 to speak with a pig butchering scam attorney today.