An unexpected text message, a new online friendship, or a connection through a dating app might seem harmless. But sometimes, what starts as a friendly conversation can turn into an elaborate financial scam.

These scams are known as pig butchering scams, and they’re designed to build trust over time before convincing someone to invest money in a fake opportunity.

Unlike scams that demand money immediately, pig butchering scams can unfold over weeks or even months, making them especially difficult to recognize.

Here’s what you need to know about how these scams work, the warning signs to watch for, and how to protect your money.

What Is a Pig Butchering Scam?

A pig butchering scam is a type of investment fraud in which criminals build personal relationships with their victims before convincing them to send money to fraudulent investments, often involving cryptocurrency.

The unusual name refers to the scammer’s strategy of building trust and encouraging larger investments before stealing the victim’s money.

These scams often combine elements of romance fraud, social media scams, and cryptocurrency investment fraud.

According to the FBI, scammers frequently use fake identities and fraudulent investment platforms that appear legitimate, making victims believe their money is growing when it is actually being stolen.

How Do Pig Butchering Scams Work?

Pig butchering scams typically follow a pattern designed to gain someone’s trust before introducing a financial opportunity.

1. An Unexpected Message Starts the Conversation

The scam often begins with a text from an unknown number, a social media message, or a connection through a dating app.

The person might pretend they accidentally texted the wrong number or simply want to make a new friend.

What seems like an innocent conversation is actually the beginning of a carefully planned scam.

2. The Scammer Builds a Relationship

Instead of immediately asking for money, the scammer spends time getting to know the person.

They may send daily messages, share personal stories, express romantic interest, or pretend to have similar hobbies and interests.

The goal is to create an emotional connection and establish trust.

3. An Investment Opportunity Is Introduced

Once the relationship feels genuine, the scammer casually mentions how much money they’ve made through cryptocurrency, online trading, or another investment.

They might offer to teach you how to invest or introduce you to a platform they claim has helped them earn significant profits.

The opportunity may seem legitimate, especially when it’s coming from someone you’ve grown to trust.

4. Fake Profits Encourage Larger Investments

Victims are often directed to professional-looking websites or apps that display account balances, investment activity, and impressive returns.

But those profits may be completely fabricated.

Sometimes, scammers even allow small withdrawals to make the investment appear trustworthy.

Once the victim feels confident, the scammer encourages additional deposits, often involving much larger amounts of money.

5. The Money Disappears

When the victim attempts to withdraw their funds, problems suddenly appear.

The platform may demand additional payments for taxes, processing fees, or account verification before releasing the money.

In reality, the investment was fraudulent, and the scammer may disappear entirely.

Warning Signs of a Pig Butchering Scam

Recognizing the red flags early can help prevent financial loss.

Watch for these common warning signs:

• Unexpected online relationships: Someone you don’t know starts a conversation and quickly wants to develop a friendship or romantic relationship.

• Investment advice from a new connection: A person you’ve only met online begins discussing cryptocurrency or other investment opportunities.

• Promises of guaranteed profits: You’re told an investment offers unusually high returns with little or no risk.

• Unfamiliar investment platforms: You’re directed to a website or app you’ve never heard of, often through a link provided by the person.

• Pressure to invest more: The person encourages you to add money quickly or take advantage of a limited-time opportunity.

• Difficulty withdrawing funds: You’re told you must pay additional fees or taxes before accessing your money.

• Requests for secrecy: The person discourages you from discussing the investment with family, friends, or your financial institution.

If someone you’ve met online begins mixing a personal relationship with investment advice, it’s important to slow down and verify the information independently.

How to Protect Yourself From Pig Butchering Scams

A few simple precautions can help protect your personal information and finances.

• Be cautious with unexpected messages. You don’t have to respond to unknown numbers or unfamiliar social media accounts.

• Don’t invest based on online relationships. Never let someone you’ve only met online pressure you into making financial decisions.

• Research investment opportunities independently. Verify the company and investment professional through trusted sources before sending money.

• Be skeptical of guaranteed returns. Every legitimate investment involves some level of risk.

• Avoid unfamiliar investment links. Scammers can create convincing websites and apps designed to look like legitimate trading platforms.

• Talk to someone you trust. A family member, friend, or financial professional may recognize warning signs you haven’t noticed.

Remember, a legitimate investment opportunity shouldn’t require secrecy, emotional pressure, or additional payments just to access your own money.

What to Do If You’ve Been Targeted by a Pig Butchering Scam

If you believe you’ve been involved in a pig butchering scam, acting quickly is important.

Stop sending money immediately. Don’t make additional payments, even if someone promises you’ll be able to withdraw your funds afterward.

Contact your financial institution as soon as possible and explain what happened. Depending on how the money was transferred, there may be steps that can be taken to help protect your accounts or attempt to recover funds.

Save copies of messages, transaction details, website addresses, and any other information related to the scam.

You should also report the incident to:

• Federal Trade Commission (FTC): ReportFraud.ftc.gov

• FBI Internet Crime Complaint Center (IC3): IC3.gov

Be cautious of anyone who contacts you afterward claiming they can recover your stolen money for an upfront fee. These recovery offers may be another scam.

Michigan United Credit Union Is Here to Help

Scammers are becoming more sophisticated, and sometimes the biggest warning sign isn’t an urgent demand for money. It’s someone taking the time to earn your trust before asking you to invest.

At Michigan United Credit Union, we believe awareness is one of the best ways to help protect yourself from financial fraud.

If something doesn’t feel right, take time to ask questions, verify information, and talk to someone you trust before moving forward.

If you believe your Michigan United Credit Union account or financial information has been compromised, contact us at (248) 814-4000.

Stay informed. Stay alert. Protect your money.