"Pig Butchering" Scam

The U.S. Department of Treasury has issued an alert to highlight a prominent virtual currency investment scam commonly referred to as “pig butchering.”

What is it?

Pig butchering is a type of scam in which the scammers use false identities to foster potential relationships with their victims. They use complex storylines to “fatten up” and gain their victim’s trust. The scammers then “butcher” their victims by stealing all their assets. The “butchering” phase usually involves convincing the victims to invest in virtual currency or foreign exchanges, then defrauding them of their investments.

Law enforcement sources estimate billions of dollars have been lost to victims of pig butchering in the U.S. To protect yourself from financial scams like pig butchering, be on the lookout for the following red flags:

• Initial contact via text message or social media
• Individuals “accidentally” reaching the wrong number or person (looking for someone else)
• Individuals contact you claiming to be an investor or money manager- often with convincing online profiles showcasing wealth
• Individuals asking for your personal information or login credentials
• High pressure sales tactics
• “play-to-earn” games with financial incentives
• Requesting you liquidate assets or take out a HELOC to invest funds
   

REMEMBER: OUR Credit Union will never contact you requesting your personal information. If you are ever unsure of a call related to your account, transactions or debit card, hang up and call your institution directly to ensure validity. Visit OUR Consumer News page to stay up to date on common scams and how to stay protected.

The U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) has released a report with additional details, and can be found here.