When you’re looking to connect with new people online, whether for romance, networking, or just friendly conversation, the last thing on your mind is becoming the target of a massive, sophisticated financial fraud. Yet, a devastating type of scheme known as a “Pig Butchering” scam is sweeping the globe, turning hopeful conversations into absolute financial ruin.
At Benchmark FCU, we believe that being informed is the first step to financial protection. We want to empower our members and the broader community with the knowledge needed to spot these dangers.
What Exactly is a Pig Butchering Scam?
It’s a calculated, long-term fraud in which criminals first build deep trust and a seemingly genuine personal connection with the victim – the “pig.” This emotional “fattening” phase can last weeks or months. Once the victim is emotionally invested, the scammer introduces a fake, high-yield investment platform, typically involving cryptocurrency or foreign exchange, and convinces the victim to transfer increasingly large sums of money. The final stage is the “slaughter,” where the victim is blocked from withdrawing their funds, and the scammer vanishes with all the stolen money.
It’s time to talk about this serious threat, not to alarm you, but to arm you.
Introduction: When a Match Asks for Money
Imagine this scenario: you meet someone charming on a dating app or LinkedIn. They’re attractive, successful, and seem genuinely interested in you. After weeks of intense, flattering conversation, they casually mention a “secret” investment opportunity that has made them wealthy – a crypto platform, a forex trading site, something cutting-edge. It sounds easy, exclusive, and too good to be true.
That pit in your stomach? Listen to it. That seemingly perfect person is likely a professional scammer working in a highly organized criminal syndicate. The financial cost of this crime is staggering and growing by the day. According to the FBI’s Internet Crime Report 2024, victims reported losses totaling over $6.5 billion in 2024 to investment scams, including Pig Butchering schemes. This isn’t small-time catfishing; this is industrial-scale financial theft.
The good news? The tactics used by these scammers are predictable. If you know their playbook, you can protect yourself.
The Playbook of Prevention: 7 Essential Rules to Avoid Being Conned
When it comes to protecting your savings and your peace of mind from Pig Butchering scams, a proactive defense is your only option. Adopt these seven rules as your non-negotiable standards for engaging with new online contacts.
Rule 1: Never Trust a Surprise “Wrong Number” or Sudden Contact
Scammers need to initiate contact, and they use highly randomized methods to find victims. Have you ever received a text that says something like, “Hey, Sarah, are you still coming for brunch?” followed by an immediate apology claiming they texted the wrong number?
The Scenario: This isn’t a simple mistake; it’s a meticulously crafted bait-and-switch. The scammer hopes your friendly nature will make you respond: “No worries, wrong number, but I’m [your name]. Nice to meet you!” This gives them the opening they need to strike up a friendly chat. Suddenly, they’ve identified a warm, polite target.
The Actionable Insight: Always be skeptical of unprompted, friendly contact from unknown numbers or profiles. A legitimate wrong-number exchange ends instantly; a Pig Butcher contact tries to turn it into an extended conversation about where they live, what they do, and how great their life is. Do not engage. A quick block is your best defense against their opening move.
Rule 2: Don’t Engage in Investment Discussions with Someone You Don’t Know
This is the central financial pillar of the scam, and it needs to be an absolute deal-breaker. No legitimate, successful investor shares their “secret” wealth-building opportunity with a stranger they just met online.
The Scenario: The conversation inevitably shifts. The new friend, who started by discussing their favorite travel spots, starts sharing screenshots of massive profits they made “this morning.” They act as your mentor, saying they want to help you achieve the same success, claiming, “I want to share this only with people I care about.”
The Actionable Insight: Any discussion of investment or high-return trading platforms with a new online acquaintance should immediately raise the loudest possible red flag. Legitimate investment advice comes from licensed, vetted financial professionals, like those you can consult here at Benchmark FCU, not someone whose face you found on a random dating profile. If they mention crypto or a proprietary trading app, end the conversation and block the contact immediately.
Rule 3: The “Too Good to Be True” Principle – Guaranteed High Returns Are a Scam
In the world of finance, risk and reward are always linked. Low risk means low returns; high returns mean high risk. Pig Butchering scams break this fundamental rule.
The Scenario: The platform they introduce promises outlandish results. For example, a guaranteed 20% return in just one week, or doubling your money in a month through “insider trading signals.” They show a steady, impossible upward trajectory with zero losses. They might even let you successfully withdraw a tiny amount initially (like $50) to build your trust.
The Actionable Insight: Guaranteed high returns do not exist in the legitimate financial world. Professional investment firms are legally prohibited from guaranteeing returns because markets fluctuate. If an online friend shows you a platform promising easy, consistent, high-yield profits, you are looking at a system designed to show you fabricated numbers, not actual market performance. If it sounds like magic, it’s a mirage.
Rule 4: Demand a Video Call (Scammers Rarely Agree)
While not foolproof, asking for a video call is one of the quickest ways to expose a scammer hiding behind a stolen image.
The Scenario: These scams rely entirely on stolen photos of attractive people (often models or minor influencers) and carefully crafted scripts. The person you are talking to is almost always not the person in the picture. They will use every excuse in the book to avoid a video chat: “My camera is broken,” “I’m traveling in a remote area with a bad signal,“ or “My job requires me to be private.”
The Actionable Insight: If you feel the need to verify the identity of an online friend before any financial conversation begins, insist on a video call, not just a picture. If they refuse, delay, or agree only to a low-quality, one-sided call that barely shows their face, you should treat them as an unverified and therefore untrustworthy source, especially when money is involved. Keep in mind that AI can help scammers trick you with this method as well, so you really should stop all contact, as per rule 2.
Rule 5: Check the Platform’s URL and App Store History
The investment platforms used in these scams are custom-built digital facades, not real financial institutions. Their digital footprint is often nonexistent or brand new.
The Scenario: The scammer directs you to a website with a slick design and an official-sounding name. You download a beautiful mobile app. You might think, “Well, if it has an app, it must be real.“ Unfortunately, these criminal organizations are skilled web developers who build convincing, but ultimately fraudulent, infrastructure.
The Actionable Insight: Become a digital detective
- Check the URL: Look closely at the domain name. Is it a strange variation of a real exchange (e.g., Binancetrading.com instead of Binance.com)?
- Verify Licensing: Does the website claim to be regulated? If so, immediately cross-reference the license number and company name with the relevant regulator (e.g., the SEC or FINRA in the U.S.). If it’s not listed, it’s fake.
- Use a Domain Age Checker: Search online for a “website domain checker.” Scam sites are often only a few weeks or months old, while legitimate financial firms have domains registered for many years.
- App Store Scrutiny: If the app is in an official store, check the developer name, the app’s first launch date, and read the reviews. Scammers can pay for fake five-star reviews, but often, the app is so new that it has very few downloads.
Rule 6: Test the Withdrawal Before Committing Large Funds
This rule is another crucial practical defense against financial entrapment. The scam thrives on a one-way street: money goes in, but it can never come out.
The Scenario: You’ve invested a small, manageable amount—say $100. The scammer shows you that the $100 has turned into $1,000 thanks to their “expert guidance.“ They pressure you to invest $10,000 to maximize your profits. You’re tempted because the platform’s numbers look great.
The Actionable Insight: Before investing another penny, withdraw your entire balance, including the fake “profit.“ If the platform is fraudulent, the withdrawal will be blocked. You will suddenly face a demand for a large “tax payment,” “liquidity fee,“ or “verification deposit“ that must be paid before your funds can be released. This is the final trap. Once the withdrawal is blocked, you know the money you deposited is already gone. Never pay the fee.
Rule 7: Talk to a Trusted Friend or Financial Advisor First
Scammers isolate their victims emotionally and financially, turning the scam into a secret that the victim is embarrassed to share.
The Scenario: The new “friend“ will tell you, “Don’t tell anyone about this amazing opportunity, especially your family. They might get jealous and try to stop you.“ They create an exclusive club of two, making the victim feel special and obligated to protect the secret.
The Actionable Insight: Break the isolation. If anyone is pressuring you to invest quickly or secretly, that is a classic abusive tactic. Before transferring any amount of money into any new investment platform, take a full 24 hours to discuss the opportunity with a trusted, neutral party. Talk to your financial advisor, a family member, or a lifelong friend. A trusted third party can view the situation without the emotional bias created by the scammer and often spot the flaws instantly. A legitimate investment opportunity can wait 24 hours; a scam cannot.
Conclusion: If You’ve Already Been Scammed
If you recognize these signs and realize that you may have already been a victim of a Pig Butchering scam, please know this: There is absolutely no shame in being targeted. These are organized crime experts who manipulate human psychology for a living.
What you do next is crucial:
- Stop All Contact Immediately: Block the scammer on all platforms (social media, messaging, phone, email). Do not send another dollar, regardless of the promise.
- Gather Evidence: Collect every piece of documentation you have, including chat logs, phone numbers, the fraudulent website URL, screenshots of the fake investment dashboard, and especially the records of the wire transfers or cryptocurrency transactions.
- Contact Law Enforcement: Report the crime immediately to the FBI’s Internet Crime Complaint Center (IC3). This is the federal clearinghouse for cybercrime.
- Contact Your Credit Union: Notify Benchmark Federal Credit Union or any financial institution you used to send funds. While recovery can be challenging, reporting quickly may allow for possible transaction reversals, especially for wire transfers when you act immediately. Even if the money cannot be retrieved, your report helps us and law enforcement track the criminal organization.
Staying safe online requires constant vigilance, especially as financial fraud becomes more sophisticated. By following these seven rules, you significantly reduce your risk of becoming the next target. Protect your heart, protect your wallet, and stay financially safe.
Benchmark is Here to Protect Members
For up-to-date information on the most current scams and to learn more about protecting yourself from fraud, be sure to read the Benchmark Federal Credit Union Blog regularly. We also offer account security options, including multifactor authentication and credit monitoring services. Call or visit Benchmark FCU today to learn more about our security measures.
Learn more about protecting yourself in our blog, “Data Breach Defense: What to Do When Your Information is Compromised.”