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In an announcement on Tuesday, March 26, Connecticut State Police warned that there has been an increase in "pig butchering" scams involving scammers convincing victims to invest money into a fake trading platform.
According to state police, the scammer will first contact the victim through dating apps, social media, or professional networking platforms. They will then build trust with the victim over several weeks or months while pretending to be romantically interested or friendly.
Once the victim is emotionally invested, the scammer will then claim to have insider knowledge of a lucrative investment opportunity, including cryptocurrency, foreign exchange trading, or a new venture, in which the victim is persuaded to invest.
When the victim decides to invest, the scammer will direct them to a fake trading platform or app that appears to show returns on their investment. Because of these false returns, the victim is lured into spending more money and eventually losing it when they try to withdraw their funds and discover the platform is fake.
To avoid being victimized by these schemes, police released the following tips:
- Be wary of strangers who reach out through online platforms, especially if they quickly try to move the conversation to WhatsApp for investing purposes;
- If someone promises guaranteed high returns on investments with little or no risk, be prepared for it to be a scam;
- Scammers will pressure victims to invest quickly and claim the opportunity is time-sensitive;
- Check if the company is registered with regulatory agencies such as the CT Department of Banking, Securities and Exchange Commission, or the Commodity Futures Trading Commission before investing;
- if the person who contacts you does not reveal their background, investment details, or the company they represent, it is likely a scam;
- Be careful of anyone who asks for personal information such as social security numbers, bank account details, or copies of your ID;
- If the person who contacts you wants to use unconventional payment methods such as wire transfers, gift cards, or cryptocurrency, it may be a scam;
- Be careful of third-party cryptocurrency tracing services that require large down payments or promise a percentage of recovered assets.
According to police, older adults with significant savings or retirement fund access are especially at risk and should be extra careful when coming across potential investment opportunities given by new acquaintances.
In 2023, the State Police Cryptocurrency Working Group was able to recover $4 million in assets lost by victims in the state. However, this was a "small number in comparison to the total losses," police said.
Authorities are now working to investigate the scams with the help of local, state, and federal partners, as well as industry stakeholders.
Any instances of fraud can be reported to local police departments or State Police barracks. Additionally, residents can report these schemes by emailing CSP.virtualcurrency@ct.gov.
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