AG Nessel Reissues Consumer Alert on Pig Butchering as Part of National Consumer Protection Week

LANSING – As part of National Consumer Protection Week, Michigan Attorney General Dana Nessel is reissuing her consumer alert on Pig Butchering, a sophisticated scam that combines a romance scam with an investment spin. 

“Consumers must always remain vigilant and alert for scams, especially as financial products like bitcoin and other cryptocurrencies become popular,” Nessel said. “Just as with any major financial decision, consumers should research the investments they are considering, avoid people or entities demanding upfront payment in cryptocurrency, be wary of promises of large, quick returns, and refrain from mixing online dating with any investment advice.” 

In an episode of their recently announced Pantsuits and Lawsuits podcast, Attorney General Nessel and Arizona Attorney General Kris Mayes expose the dangers of “pig butchering” scams that are targeting seniors in their states. They are joined by Alex Juarez and Mark Fetterhoff of AARP to discuss how people can recognize and protect themselves from fraudsters. During the episode, Juarez and Fetterhoff talk about how the AARP’s ElderWatch program offers peer to peer counseling for residents with questions about their credit report, finances in general, or who may have recently been the victim of a scam.  AARP’s trained volunteers are available to seniors and their family, and can be contacted at 800-222-4444 or via email.

“With Pantsuits and Lawsuits, we’re having important conversations about scams and legal issues that impact our lives,” Nessel said. “We were glad to talk with experts from the AARP, who are on the front lines protecting seniors from pig butchering scams. Episodes like this one help give listeners the tools they need to stay informed and protect themselves against scammers.”

To protect yourself from pig butchering scams:

• Don’t send money, trade, or invest with a person you have only met online.
• Don’t speak of your financial position or investments with strangers online.
• Don’t share personal information or current financial status with strangers.
• Don’t provide your banking information, social security number, copies of your identification or passport, or any other sensitive information to anyone online or to a site that you cannot verify is authentic.
• If an online investment or trading site promotes unbelievable profits, it is most likely just that—unbelievable.
• Be cautious of individuals who claim to have exclusive investment opportunities and urge you to act fast.

The scam is predominately executed by a sophisticated criminal enterprise (sometimes using human trafficking victims) to find potential targets on social media sites and by sending out mass text messages. It can start with a perpetrator creating a fake profile used to reach out to those seeking companionship often through social media, WhatsApp, Tinder or other dating sites, and even random texts, masquerading as an incorrect number or an old acquaintance. The goal is to initiate a cordial discussion with the recipient, attempting to be their “new friend” or “romantic partner.”

The new friend creates reasons to continue a conversation, which leads to multiple calls. They slowly develop a relationship so they can insert themselves into their target’s daily life. While building trust through ongoing conversations, they slowly introduce the idea of making a business investment using cryptocurrency. The new friend employs persuasion rather than requesting money outright because they are aware that individuals are savvy and know that being asked for money by a stranger is a sign of a scam. The victim is gradually drawn into what appears to be benign talk about cryptocurrency investments and earnings, but they are really being manipulated to make an investment.

The new friend slowly convinces the target to invest in cryptocurrency and refers them to a bogus website or app that looks authentic but is controlled by the scammer. The victims are encouraged to invest small amounts in the beginning and the scammer will make sure to post a modest gain on the investment. They may even allow the victim to withdraw money once or twice to convince them the process is legitimate. 

The victim is then persuaded to invest larger amounts on the fake platform, sometimes hundreds of thousands of dollars. Once the money is sent to the fake investment app, sometimes the scammer vanishes, taking all the money with them.  Other times, the scammer claims that the victim must pay exorbitant, and fake, fees and taxes before being able to withdraw their money. Either way, the end result is the same – significant losses for the victim.

While pig butchering often uses romance as a tactic, scammers can also build other types of personal or professional relationships. They are experts who are trained to manipulate their targets, making it easy for someone to fall prey to this scam. 

Pig butchering red flags include:

• Strangers sending seemingly innocuous text messages out of the blue.
• Strangers who quickly try to move the conversation to WhatsApp or another social media site.
• People who avoid video-calling with multiple excuses or flatly refuse to initiate any kind of video-calling.
• People chit-chatting about their insider investment knowledge.
• The URL of the investment platform doesn’t match the official website of a popular cryptocurrency market or exchange but may be very similar.
• The investment app generates warnings of being “untrusted” when launched, or the computer’s antivirus software marks it as potentially dangerous.
• The investment opportunity sounds too good to be true.

If you believe you are a victim of this cryptocurrency scam, quickly report the crime to your bank, the Federal Trade Commission (FTC), the Internet Crime Center (IC3), the Federal Bureau of Investigation (FBI) local office, your local police, and the Michigan Department of Attorney General. The longer you wait, the harder it is to trace or freeze stolen funds. 

To file a complaint with the Department of Attorney General, contact:

Consumer Protection Team
P.O. Box 30213
Lansing, MI 48909
517-335-7599
Fax: 517-241-3771
Toll-free: 877-765-8388
Online complaint form

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