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Avoid Scams: Investment Fraud and Pig Butchering

Investment fraud involves criminals duping victims into investing money into fraudulent projects or fictitious assets. These types of securities scams may include pyramid or Ponzi schemes, high yield investment fraud, “pump and dump” schemes, advance fee schemes, real estate investment fraud, or schemes involving precious metals and coins. In particular, investment fraud associated with cryptocurrencies is becoming increasingly prevalent and easily perpetrated using social media and communications applications.

One of the most common categories of cryptocurrency investment fraud is known as “pig butchering,” a highly lucrative billion-dollar industry that has victimized millions of Americans. Pig butchering scams involve fraudsters gaining the trust of victims, oftentimes via a fictitious romantic relationship, and duping them into making investments into fake cryptocurrency projects. These schemes typically begin with a victim meeting someone on an online dating website. Alternatively, a victim may receive a random unsolicited message on social media, via text, or through a messaging application, with the conversation eventually appearing to turn romantic. The victim will then be convinced to begin transferring money to an alleged cryptocurrency investment opportunity recommended by the scammer. The scammer will eventually highlight seemingly impressive monetary gains from initial investments and encourage the victim to invest increasingly larger amounts, ultimately resulting in financial ruin to the victim.

Secret Service Alert on Cryptocurrency Scams and Pig Butchering: Click here to download a Secret Service awareness flyer for education and distribution purposes.

How to Protect Yourself

• Be wary of people you meet on dating websites or social media who offer you unsolicited financial, investment, or cryptocurrency advice.
• Be cautious of unsolicited investment opportunities offered via phone, message, email, social media, or in person.
• Always question the legitimacy of projects that sound too good to be true, are advertised as having high rates of returns with little or no risk to your original financial investment deposit, or are advertised as “the next big thing.”
• Shield yourself from scenarios in which you are encouraged to open an account on a cryptocurrency trading platform and transfer funds from your bank account to invest in cryptocurrency projects. 
• Never share personal financial information with individuals you have not met in person. If the promoter of an alleged investment is asking you for sensitive information, such as your social security number or bank account details, is using high pressure tactics to attempt to force you to invest, or claims you need to pay a fee or provide identifying documents to unlock access to an investment opportunity or liquidate existing profits, immediately remove yourself from the situation by ceasing all communications.
• Avoid projects that involve you earning money in exchange for recruiting others to invest in a project, as this is likely a pyramid scheme.
• Consult the websites of federal and state regulatory authorities and online corporate records concerning any proposed investment, investment firm, or anyone representing themselves to be a broker or similar.
• Conduct searches via Internet search engines to attempt to identify any online reports flagging particular investment or cryptocurrency projects of interest as scams.
• Request to review financial statements, annual reports, or audit results for any proposed investment.
• Warning signs that you are a victim of a scam include notifications, messages, or websites indicating that you have made large amounts of money in a short time period.
• Red flags include perceived “friends” or romantic partners who you have met online but who can seemingly never meet in person and avoid showing themselves on video calls. Do not be embarrassed about being a victim. Immediately report this fraud to your local law enforcement agency.

Investment Fraud and Pig Butchering Victim Resources 

• Federal Trade Commission (FTC) Investment Scams
• Financial Industry Regulatory Authority (FINRA) BrokerCheck
• Securities and Exchange Commission (SEC) How to Avoid Fraud
• American Association of Retired Persons (AARP) Fraud Resource Center

The Secret Service has observed a significant increase in cryptocurrency and digital asset investment scams. These scams often target victims who use social media, online dating, or professional networking platforms.

If you have been defrauded of funds through a cryptocurrency investment scam, please contact the Secret Service at CryptoFraud@SecretService.gov.

Disclaimer: Your responses are voluntary. Based on the information provided, you may be contacted by the Secret Service or other law enforcement entity and asked to provide additional information. The Secret Service cannot act as your attorney or provide you with legal advice. However, you may seek the advice of an attorney with respect to this or other related legal matters.

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