Consumer protection efforts continue to target evolving financial fraud schemes. New York Attorney General (NYAG) Letitia James issued a consumer alert and online guide on Feb. 17, warning residents about “pig butchering” scams and outlining steps to prevent investment-related losses.
“Heartless scammers are using increasingly sophisticated means to prey on communities looking for connection and opportunity,” Attorney General James stated. “These fraudsters go to great lengths to gain trust and convince people to send them their savings, sometimes ruining their victims’ finances.”
The alert describes how perpetrators typically approach targets through social media, dating applications, unsolicited text messages, or online advertisements before shifting conversations to encrypted platforms such as Wechat or Whatsapp. The guidance explains:
The NYAG office outlines how victims are shown false account balances reflecting significant gains, prompting larger deposits over time. It emphasizes: “After the victims have deposited substantial sums of money into the scammer’s platform, ranging from tens of thousands to over a million dollars, they will be unable to withdraw their funds or will be asked to prepay fake withdrawal fees or taxes with the promise that their investment gains will be released.” The NYAG office cautioned:
FAQ ⏰ What is a pig butchering scam involving cryptocurrency? It is a long-term fraud where scammers build trust before luring victims into fake crypto or foreign exchange investment platforms. They often use social media, dating apps, unsolicited texts, and encrypted platforms like Wechat or Whatsapp. Why can’t victims withdraw funds from scam investment platforms? Fraudsters block withdrawals or demand fake fees and taxes after victims deposit large sums of money. How can New Yorkers report cryptocurrency investment fraud? Suspected scams can be reported online to the Office of the Attorney General with protected identifying information.
