Stay Aware and Avoid Pig Butchering Scams

April 21, 2026

By K-Staff

Fraud, Insighter

An investment scam that is increasing in frequency is the “pig butchering” scam, where fraudsters work to gain their victims’ trust over time before convincing them to invest in fake cryptocurrency assets or other fraudulent investment opportunities. They are called “pig butchering” scams as a metaphor of the fraudsters “fattening” their victims before exploiting them financially.

How do "pig butchering" scams work?

The scammer can use a variety of methods to contact victims, from social media profiles and dating apps to unsolicited text messages. Once a connection has been made, they will work to deepen that connection over time before introducing the scam – usually an investment opportunity with cryptocurrency or foreign currency, with promises of profits for the prospective investor.

From there, victims who provide funding for this investment are led to believe they are making incredible returns, with the scammer showing them increasing account valances on purported online statements and investment platforms. This reinforces the trust loop between the victim and the scammer, leading the victim to increase their investment.

However, once the victim tries to withdraw their funds, they find they are either unable to do so, or the scammer asks them to pay fees – and eventually, the scammers cut off contact and keep their victims’ money.

How can you avoid becoming a victim?

Avoid wiring money, sending cryptocurrency, or giving cash to people you don’t know. These types of transactions are irreversible; once executed, the money will not be recoverable.
Don’t give your personal or financial information to someone you just met, and limit the information you share online. Anything that is publicly accessible can be used to target you for these types of scams.
Be cautious if someone is using high-pressure sales tactics or attempts to create a false sense of urgency.
Avoid projects that involve you receiving money in exchange for recruiting other participants in an investment – this is a classic sign of a pyramid scheme.
Never rush into any investment – if it seems too good to be true, it likely is. Consult a trusted legal professional or financial advisor if you have any questions about prospective investment opportunities.

The most important thing to do is to be vigilant about anyone you have recently met. Be aware, be skeptical, and think twice before acting.

What should you do if you are a victim of a "pig butchering" scam?

If you’ve shared financial details or made a payment through your bank accounts, notify your bank or credit union immediately to freeze your accounts and dispute the charges.
If your personal information has been stolen, visit IdentityTheft.gov to create a recovery plan.
Most social media platforms have tools to flag fraudulent posts, ads, or profiles – use them to help ensure that others aren’t impacted by these scams.
Filing an official report helps law enforcement track trends and stop scammers – report incidents with the Federal Trade Commission, the FBI’s Internet Crime Complaint Center, and your local police department.
Save all communications so you can provide them to law enforcement if necessary. Although the scammer’s profiles on social media or dating apps may be fake, they could still have useful information, like phone numbers, usernames, email addresses, and social media handles.
Save records of financial transactions, especially with cryptocurrency. To avoid errors, copy and paste this information into your complaint rather than type it manually. Include the date for any transaction, the amount sent and type of digital asset, the wallet address associated with the scammer, and the transaction hash/ID or receipt associated with the transaction.