As part of National Consumer Protection Week, Michigan Attorney General Dana Nessel has reissued a consumer alert on the scam known as Pig Butchering. This sophisticated scheme combines elements of romance scams with investment fraud, often involving cryptocurrencies.
“Consumers must always remain vigilant and alert for scams, especially as financial products like bitcoin and other cryptocurrencies become popular,” Nessel stated. She advised consumers to thoroughly research investments, avoid upfront cryptocurrency payments, be cautious of promises of quick returns, and not mix online dating with investment advice.
In an episode of the "Pantsuits and Lawsuits" podcast, Attorney General Nessel and Arizona Attorney General Kris Mayes discuss the risks associated with pig butchering scams targeting seniors. They are joined by Alex Juarez and Mark Fetterhoff from AARP to talk about how people can protect themselves from fraudsters. AARP’s ElderWatch program offers peer-to-peer counseling for residents concerned about their finances or who may have been scammed. Seniors and their families can reach out to AARP's trained volunteers 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,” said Nessel. “We were glad to talk with experts from the AARP, who are on the front lines protecting seniors from pig butchering scams.”
The scam typically involves criminals using fake profiles on social media or dating sites to initiate contact under false pretenses. The perpetrator gradually builds a relationship with the target before introducing them to fraudulent cryptocurrency investments through bogus websites or apps controlled by scammers.
Victims may initially see small returns on their investments, encouraging them to invest larger sums. Eventually, the scammer either disappears with the money or demands fake fees before allowing withdrawals.
Signs of potential pig butchering scams include unsolicited messages from strangers, requests to move conversations to different platforms like WhatsApp, refusal to video call, discussions about insider investment knowledge, suspicious URLs for investment platforms, warnings from antivirus software about untrusted apps, and investment opportunities that seem too good to be true.
If you suspect you've fallen victim to this type of scam, it's crucial to report it promptly to your bank and authorities such as the Federal Trade Commission (FTC), Internet Crime Center (IC3), Federal Bureau of Investigation (FBI), local police, and Michigan Department of Attorney General.
Complaints can be filed with the Department of Attorney General's Consumer Protection Team at P.O. Box 30213 Lansing, MI 48909 or by calling 517-335-7599. An online complaint form is also available.