The New Mexico Securities Division of the Regulation and Licensing Department is warning consumers against “pig butchering” scams and how to avoid falling victim this holiday season. And don’t worry, there’s no pigs involved.
It all starts with a text, voicemail or even a social media message to the “pig” or the victim. Scammers will try to strike up a conversation. When the potential victim responds, the perpetrator may continue the conversation by being friendly. Over a longer period than other scams, a relationship is built with the conversation eventually turning toward cryptocurrency and investment into a business idea. The perpetrator “fattens up” the victim by building a relationship and eventually, the victim is “butchered” for much, if not all, of their life savings. The whole process can take months to achieve so that the victim feels there is a real relationship built.
This scam is a particular threat to seniors and those with fewer social contacts. By the year 2030, 32.5% of New Mexico’s population will be age 60 or older. The state will also rank third in the nation in percentage of population for that age group by 2030.
“As New Mexico’s senior population increases, so will financial abuse incidents,” said Benjamin Schrope, New Mexico Securities Division acting director. “Often these people operate under aliases. They’re not using their real names, their real identities. Often it’s very, very difficult to determine where the communications are even coming from,” said Schrope. Seniors and other vulnerable populations should be cautious of these warning signs of a pig butchering scam:
- Random, non-initiated communication from an unknown individual attempting to build a relationship
- Unsolicited investment offers received by email, social media or telephone
- Investment opportunities with too-good-to-be-true returns
- Displays of urgency making you think this is a deal you don’t want to miss
- Fraudulent ads posted on the internet or social media
- Request to transfer your legitimate crypto investment to an alternate crypto address that is under the control of criminals
- If you think you’ve been scammed, call your local police department or reach out to the FBI.