'Pig butchering' or investment scams. How to spot them before it's too late

The state is warning New Yorkers to be on the lookout for “pig butchering” scams, which target unsuspecting victims to make fraudulent investments resulting in severe financial losses, according to a consumer alert from the attorney general’s office.

In pig butchering scams, fraudsters “fatten up” their targets by gaining their trust through long-term personal or romantic relationships, Attorney General Letitia James’ office warned this week. They remain one of the riskiest types of scams in terms of financial losses, research shows.

“Heartless scammers are using increasingly sophisticated means to prey on communities looking for connection and opportunity,” James said in a statement Tuesday. “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,” she said.

Online attacks have grown exponentially more prevalent and sophisticated over the years across the country, including on Long Island, as scammers take advantage of technological advances like artificial intelligence to con victims, experts say. And while seniors are frequently highlighted as a vulnerable group, scammers target everyone.

The financial loss from pig butchering scams are staggering. Nearly $75 billion globally was lost through such scams between 2020 and 2024, according to a 2024 study from the University of Texas at Austin.

Here are five things to know about pig butchering scams.

How do scammers gain a victim’s trust?

Pig butchering scams usually find victims through social media, dating apps, random text messages or online advertisements, the attorney general’s office said.

Unlike other scams where fraudsters look for a quick buck, in these scams, criminals will spend a “substantial amount of time” making victims think they are in a close friendship, business partnership or romantic relationship, the office said.

Claire Rosenzweig, president and CEO of the Better Business Bureau of the New York metropolitan area, said fraudsters will sometimes spend months trying to gain trust.

How do scammers communicate with victims?

Scammers will often move conversations away from social media onto encrypted chat apps like WeChat or WhatsApp to hide their identities from law enforcement, the state said.

What’s the next step in the scheme?

Typically, after trust has been established, scammers will introduce victims to an investment opportunity, usually one involving cryptocurrency or foreign currencies, the AG’s office said.

Scammers will often share fake screenshots showing how much money the investment is bringing them, or direct victims to fictitious websites that appear to be for legitimate investments firms or banks.

The following-up and constant communication is a major part of the scam, said Bernard Macias, senior associate state director for AARP Long Island.

“This is a business for scammers, and like a lot of businesses, if you’re a salesperson, you’re following up on the cold-calling to land the account,” Macias said.

When does the “butchering” part of the scam occur?

Throughout the scam, victims are shown fabricated evidence that their investments are making major gains, often through fake online statements, the attorney general's office said. From there, victims are encouraged to deposit even more of their funds to the fake investment platform.

After substantial funds are sent, ranging from tens of thousands of dollars to more than a million, scammers will then cut contact and make off with a victim’s money.

How often do victims lose money in these scams?

Rosenzweig said that pig butchering is a type of investment scam and can exact a heavy financial toll on victims. 

Investment scams, including those that involve cryptocurrency purchases or investments, were the "riskiest scam type" in 2024, according to the Better Business Bureau's 2024 Scam Tracker Risk Report. More than 80% of people targeted by investment/cryptocurrency scams reported losing money, with a median loss of $5,000, according to the BBB.

“Crypto/investment scams are the number one riskiest type of scam” in terms of financial loss, she said.