FinCEN reports that overseas scam centers stole about $12.7B from U.S. victims since 2023, largely through “pig butchering” style cryptocurrency investment scams. Scammers build trust using fake personas (often romance or “financial adviser” roles), then pressure victims to buy crypto and send it to scam-controlled accounts, sometimes even taking out loans or second mortgages to do so.
FinCEN's analysis of more than 33,000 cyber fraud reports describes a consistent pattern behind pig butchering scams. Scammers open contact through social media or messaging platforms, adopting personas such as a romantic partner or a trusted financial adviser. Over time they build rapport and credibility, then introduce an apparently high-return cryptocurrency investment opportunity. The victim is instructed to transfer money, often through a legitimate digital-asset provider, to purchase crypto and then send it onward to an account controlled by the scammer.
What makes these scams effective is the sustained emotional and financial pressure applied over time. Victims described liquidating retirement accounts, taking out personal loans, and even opening lines of credit against their homes to keep funding the ‘investment.’ In one case, a victim withdrew nearly $640,000 from a retirement fund; in another, a victim was denied loans twice but still pursued additional credit at the scammer's urging. The trust built through a romantic or advisory relationship makes victims dismiss warnings from banks or family members.
A distinct pattern emerges once victims try to withdraw funds. Many only realize they have been scammed when asked to pay an unexpected fee to release their money. Some are then approached separately by parties posing as ‘asset recovery services’ that promise to retrieve the stolen funds, only to steal from the victim a second time. This follow-on scam preys on victims who are already emotionally and financially depleted.
Banking staff, wealth advisors, and general employees should treat unsolicited investment advice from online contacts as a high-risk signal, particularly when crypto is involved. Financial institutions can watch for behavioral indicators like rapid account liquidation or unusual wire activity tied to digital-asset purchases. Individuals should verify any investment opportunity through independent, trusted channels rather than the same contact who introduced it, and should never pay a fee to unlock or recover funds. Reporting suspected fraud promptly, both to a financial institution and to relevant authorities, helps limit losses and supports broader tracking of these scam networks.
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It is a cryptocurrency investment scam where scammers build trust using fake personas, such as a romantic partner or trusted financial adviser, then persuade victims to buy crypto and transfer it to scammer-controlled accounts.
FinCEN reports that about $12.7 billion was stolen from Americans in cryptocurrency investment scams since 2023, based on analysis of more than 33,000 cyber fraud incident reports.
Red flags include a new online contact quickly pushing crypto investment advice, pressure to liquidate retirement accounts or take out loans, and requests to pay a fee before withdrawing funds.
Many victims only realize the scam when asked to pay a withdrawal fee, and some are then targeted again by fake asset recovery services promising to help get the money back.
Since 2023, “pig butchering” crypto scams have drained about $12.7 billion from Americans. You meet a “financial adviser” on LinkedIn. They say, “I can help you invest in a high‑return digital asset opportunity, here’s how to get started,” and walk you through wiring money or buying crypto, then sending it to their wallet. Or a new online romance says, “I found a venture we can invest in together, can you get the money so you don’t miss out?” Suddenly you’re urged to liquidate retirement, take out loans, even a second mortgage, and later asked to pay a fee just to withdraw your “profits.” Here’s the move: if anyone you only know online pushes you to move savings or take loans for crypto, stop and call our security or fraud hotline before sending a cent.
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