(New York, June 6 – Consumer warning issued by New York Attorney General Letitia James alerts residents to the increasingly common online scams where fraudsters befriend victims through dating apps, social media, and unsolicited text messages before persuading them into fraudulent investments.
Known as “pig butchering” scams, these online romance schemes involve fraudsters “fattening up” victims through language to gain their trust before ultimately swindling their money. The Office of the Attorney General of New York encourages New Yorkers to take measures to protect themselves from these scams and report them to dating apps (or social media) and law enforcement agencies.
“New Yorkers seeking romance and relationships online are being ruthlessly exploited and harmed by scammers,” said Letitia James. “Sophisticated fraudsters are increasingly using dating apps and social media to lure users into false investments. These scams are often highly personalized, sometimes even romantic, leaving victims feeling embarrassed and isolated. But New Yorkers who have fallen victim to these frauds should know they are not alone.”
Pig butchering scams typically target victims online through dating websites, social media, and unsolicited texts. After virtual meetings between victims and scammers, conversations often move to chat platforms like WhatsApp or WeChat to shield the scammer’s identity from law enforcement.
Fraudsters spend considerable time convincing victims they are in a romantic or intimate relationship. Once a personal connection is established, the conversation shifts to transactions or investment opportunities.
Scammers send screenshots of purported high account balances on trading platforms or websites and photos of their supposed lavish lifestyles to bolster their image as highly successful investment experts. Once victims trust them enough, scammers introduce investment opportunities, often involving cryptocurrencies or foreign currencies. They may even spell out names of reputable institutions to lead victims to seemingly legitimate websites. Victims are led to believe that, with the knowledgeable fraudster’s assistance, they are poised to reap high returns.
Throughout the scam, victims often see their account balances increase on so-called online bills or investment platforms. Consequently, victims trust the scammer more and invest more funds. Eventually, after depositing substantial amounts ranging from tens of thousands to millions of dollars into the scammer’s platform, victims find they cannot withdraw the funds, are asked to prepay false withdrawal fees or taxes. Scammers promise that once these fees or taxes are paid, their investment returns will be released.
Letitia James advises New Yorkers to take basic measures to avoid falling prey to romance scams or other online frauds.
1. Generally, refrain from sending money, cryptocurrency, or providing cash to individuals you do not know, as these transactions are irreversible.
2. Research online by image or personal details to see if the picture, name, or information has been used elsewhere to avoid stolen identities created by scammers using artificial intelligence.
3. Maintain skepticism towards individuals encountered online:— who change phone numbers or ask you to delete conversations during the “courtship” period,— who promise to meet in person or via video calls but always provide excuses for not meeting,— who shift conversations from texts or emails to WhatsApp or other encrypted platforms,— who try to isolate you from friends or family by suggesting secrecy about the relationship or investment opportunities provided,— who request detailed personal financial information or explicit/private photos that could later be used for extortion,— who compel you to withdraw from retirement accounts (even facing penalties), borrow money from friends/relatives, or apply for bank loans,— who provide a transfer account different from the name of the personal platform/exchange.
4. Avoid rushing into investments. If someone insists you must invest within a short time frame or claims you will miss out, maintain suspicion.
5. Consult trusted legal professionals or financial advisors before investing to receive advice on the suitability of investments. Check the registration status of investment professionals on the FINRA’s BrokerCheck website.
6. Trust your instincts and think twice before investing. If investment returns seem unbelievably good, they are likely fake.
7. If you suspect fraudulent activity, report the individual to dating or social media apps and law enforcement. Save all communications for law enforcement if needed.
Letitia James urges anyone affected by such scams to lodge complaints to the OAG through online complaints or by calling 1-800-771-7755. Providing any identifying information to the OAG will be protected according to identity and legal policies.)