Fraud Banner

Exposing the Pig Butchering Scam

Introduction

In recent years, a troubling investment scam known as the “Pig Butchering” scheme has emerged, targeting victims with false promises and cryptocurrency transactions.

Understanding the Scam

The Pig Butchering scam operates by enticing victims to invest cryptocurrency with promises of high returns. Initially, small investments are encouraged, but as trust is built, scammers persuade victims to increase their contributions significantly.

Insights from Investigations

The Office of Inspector General (OIG) has been instrumental in investigating and uncovering the inner workings of this fraudulent scheme. Through collaboration with law enforcement and financial experts, they’ve exposed the tactics used by scammers to deceive and defraud investors.

How this type of Scam Targets Consumers:

  • The perpetrators might contact you randomly by way of text messages, dating apps, social media platforms, and then later switch to VOIP chat applications. 
  • They will try to develop meaningful relationships with you, gain your trust, and offer you high-yield investment opportunities in virtual assets, such as cryptocurrency. 
  • They will tell you to open accounts on online investment websites and instruct you to deposit money via wire transfer to shell companies, or direct transfers on legitimate virtual asset service providers (VASPs) or cryptocurrency exchanges. 
  • They will pressure you to invest more money, or your relationship with them will end. 
  • If the scam works, you will most likely be duped and the fraud will end.
  • When you attempt to withdraw money, websites may demand that you pay additional fees to do so; or you may be locked out of the account and never hear back from the perpetrator. Perpetrators disappear with all of your funds. 

Pig Butchering Consumer Scam Alert

If you or someone you know has been victimized, report it immediately to:

  • The victim’s financial institution
  • The FBI’s Internet Crime Complaint Center 
  • Victims should also report to cryptofraud@usss.dhs.gov and the Secret Service will refer your email to an appropriate field office for immediate action. 
  • Local law enforcement
  1. Information provided by the Office of Inspector General.