Attorney General James Warns New Yorkers About “Pig Butchering” Scams

NEW YORK – New York Attorney General Letitia James today issued a consumer alert and an online guide to protect New Yorkers from “pig butchering” scams, in which fraudsters befriend victims under false pretenses and convince them to make fraudulent investments. Scammers use the phrase “pig butchering” to refer to their schemes in which they “fatten up” victims by gaining their trust before finally taking their money. Attorney General James is encouraging New Yorkers to follow the Office of the Attorney General’s (OAG) guide to protect themselves and report these schemes to the respective platforms involved and to OAG.

“Heartless scammers are using increasingly sophisticated means to prey on communities looking for connection and opportunity,” said Attorney General James. “These fraudsters go to great lengths to gain trust and convince people to send them their savings, sometimes ruining their victims’ finances. I encourage all New Yorkers to remain vigilant and contact my office if they or a loved one is affected by one of these scams.”

Pig butchering schemes typically target victims through social media, dating apps, unsolicited text messages, or ads. After establishing a connection, the scammers will generally transition the conversation over to an encrypted chat platform, such as WeChat or WhatsApp, that can shield their identity from law enforcement. Scammers typically spend a substantial amount of time making victims believe that they are in a close personal relationship, such as romantic partners or friends, or in a professional relationship with a trustworthy financial advisor.

After scammers gain the confidence of their victims, they introduce them to a trading or investment opportunity, often in cryptocurrency or foreign currencies. To reinforce the appearance of success, the scammer may share fake screenshots showing how much they have made on trading platforms or send photos of the expensive houses, jewelry, or cars they supposedly own. The scammer may also refer victims to fraudulent websites that appear to belong to a legitimate bank or investment firm, but with a slightly altered name.

From there, victims are led to believe that they are making incredible returns with the help and expertise of the scammer. Throughout the scam, victims typically see their account balances increase on purported online statements or investment platforms. In turn, the victims continue to place more trust in the scammer and invest more funds. After the victims have deposited substantial sums of money into the scammer’s platform, ranging from tens of thousands to over a million dollars, they will be unable to withdraw their funds or will be asked to prepay fake withdrawal fees or taxes with the promise that their investment gains will be released. Eventually, the scammers will cut off contact and keep their victims’ money.

Attorney General James recommends simple steps for New Yorkers to follow to avoid becoming the victim of a pig butchering scam or any other fraudulent schemes. These include being suspicious of anyone who:

• Warns you not to tell anyone about your relationship with them or the investment opportunity they’re offering.
• Interferes when your bank or brokerage questions a transaction they have instructed you to do.
• Asks you for personal financial information or private photographs, which could later be used to extort you.
• Promises to meet you in person or over video, but always finds an excuse not to meet. Keep in mind that even video calls can be faked.
• Instructs you to hand cash or a check to a courier or delivery person, or to use a bitcoin ATM.
• Requests to move your conversation from text and email to WeChat, WhatsApp, or other encrypted platforms.

Attorney General James also urges New Yorkers to: 

• Avoid wiring money, sending cryptocurrency, or giving cash to people you don’t know. These transactions cannot be reversed.
• Research the person soliciting. Do web searches to see whether their image, name, or details appear elsewhere online – and whether they have been faked or belong to someone else. Scammers may use stolen identities, or could use AI to generate their profiles and pictures.
• Beware if someone pressures you to invest within a very short time frame, and claims you will lose out on an opportunity. 
• Consult a trusted legal professional or financial advisor who can advise you on investment opportunities. 
• Never rush into any investment. If it seems too good to be true, it probably is. 
• Report the individual to the respective platform and to law enforcement if you suspect fraud. Save all communications so that you can provide them to law enforcement if needed.

Attorney General James encourages anyone who may have been a victim of this type of scam to report it to OAG by filing a complaint online or calling 1-800-771-7755. Any identifying information provided to OAG will be protected according to law and policies on the safeguarding of identifying information.