The Expert Podcast

So, what is a pig butchering scam?

If you've been a victim of fraud, you may not even realize it until it’s too late. That’s because the pig butchering method is being used by scammers. What is it? Sadly, we get dozens of calls and contacts every day from people who are victims of this kind of scam. They have been groomed over the course of weeks or months—sometimes over a year—by people online, on social media, or maybe on dating apps. These scammers build up a relationship to gain your trust and then go in for the kill.

Then they ask you for money—and usually, they do that slowly. They start by asking for a small amount of money and gradually build it up until they’ve taken everything you have. It requires so much time and patience by the scammer that you would never think you’re being scammed because the person just puts too much into it.

The reason they’re able to do it is that they have teams of people on the other end working 24 hours a day, seven days a week. It’s not just one person you’re talking to. They might seem like one person with one name and one picture, but they have a crew or staff rotating to always be available to talk to you. Sometimes one of the people might quit, leave the company, get fired, or move. They’ll have someone else step right in.

Over time, they’ll gain your confidence. They’ll ask for a small amount of money—$100, $1,000—something very reasonable. You send it to them, and they’ll show you a large return, maybe doubling your money in a month. Then they’ll say, “If you put more in, you’ll make more money.” Gradually, they build it up.

If you get to the point where you’re skeptical and want to take your money out, they’ll say, “No problem, we’ll give you your money, but you have to pay tax.” Then you pay the tax, which is just more money in their pocket.

Be aware of these pig butchering scams. They don’t look like a scam—they look like a legitimate investment. Always verify that any investment being offered to you is registered with the SEC as a registered investment security. Look at the history and background of the principles. Make sure you’re not just going by a picture and a name. Sometimes, they’ll even hijack somebody’s name off LinkedIn or Facebook to make it look like a real person. Contact them through another channel to ensure it’s really the person.

If you have questions about an investment you’re thinking about or are already in, you can click the link below to get more information about an investigation or a simple consultation with an investigator to set your mind at ease—whether or not you’re being scammed or if your money is safe.

If you like this video, be sure to click on a few others on our channel to see if there’s other information that might be helpful about this subject or other related subjects that could assist you in resolving your issue.