Two of the most recent scams right now are:

• The Pig Butchering Scam
• The Cash App Scam

Contrary to what some might believe, it’s not just older consumers who are caught in the crosshairs of financially and emotionally draining scams — according to the Federal Trade Commission (FTC), 34 percent of people between the ages of 18 and 59 have reportedly lost money to fraud in 2021. These two scams tend to target younger consumers.

Pig Butchering Crypto Scam:

The pig-butchering scam is a new kind of cryptocurrency investment scam that is rapidly growing and causing concern among security experts and law enforcement agencies. According to the 2022 Internet Crime Complaint Center (IC3) report, crypto-investment scams have had an unprecedented increase in both the number of victims and the total amount of losses, with the latter amounting to $2.57 billion in 2022. 

Pig butchering scams are long-term con jobs that combine elements of romance scams, investment schemes, and cryptocurrency fraud. In other words, they prey on vulnerable people looking for human connections. Victims are anyone of any age, of any gender, and of any social class. 

Here’s how it works - the scammer initiates contact with a target online via social media, a dating app, or by sending a “wrong number” text message. Twelve percent of Americans who have used a dating app have experienced pig butchering, which has more than doubled from five percent over the last five years.

Once the scammer finds a suitable target — the “pig” — they stay in constant contact to build a relationship. Scammers have developed sophisticated techniques to attract targets and build trust.

After earning the victim’s trust, they encourage the victim to start cryptocurrency trading. They will claim to have insider tips or family connections in the investment industry and explain that massive returns are common. 

They then encourage the victim to download an app — and offer to trade together, showing how easy it is to yield returns. 

Once you join the platform, they simulate trades to make it look like you’re earning profits. They may even encourage victims to withdraw some of their “gains” to build their confidence.

Over time, they continue to manipulate victims in order to keep them investing. This step is known as “fattening the pig” before a slaughter. (Their disdain for the victim is even reflected in the words they use!)

Later, when you try to withdraw your money, the platform will claim there’s an issue with the account — or will inform you that you need to pay massive fees and taxes to get your cash. 

Eventually, the victim (or their family) realizes the truth — and the scammer, and platform, disappear. As all transactions happen on the blockchain, recovering the funds is almost impossible. 

So, how can you avoid becoming a victim of this advanced scam?

• Don’t ever engage in any financial transactions with strangers.
• Be cautious of “wrong number” texts or emotional appeals.
• Be cautious of “love bombing” on dating sites (someone getting too involved too quickly).
• Think carefully before responding to anyone suddenly talking about cryptocurrency investments.
• Trust your gut, give yourself time to think, and ask advice from people you trust.
• Don’t download any crypto exchange platforms when asked to do so by a stranger. 

Pig butchering scams use social engineering to build your trust over weeks and months. Once you understand what is happening, break off all contact with the scammer. And please, tell trusted friends and family, and warn them about falling victim to these scammers.

Mobile Payment Scams

Many of us use mobile payment apps like Venmo, Cash App, or PayPal that let you send and receive money through your smartphone (or online).

Some scammers will try to trick you into sending them money through a mobile payment app. That’s because they know that once you do, it’s nearly impossible to get your money back. 

Scammers might pretend to be a loved one who’s in trouble and ask you for money to deal with an emergency. Others might say you won a prize or a sweepstakes but need to pay some fees to collect it.

There are some simple ways to avoid becoming a victim to mobile payment scams:

• Don’t ever money to someone you don’t know.

• Don’t send a payment to claim a prize or collect sweepstakes winnings.
• Don’t give your account credentials to anyone that contacts you.
• Protect your account with multi-factor authentication or a PIN.
• Before you submit any payment, double-check the recipient’s information to make sure you’re sending money to the right person.
• If you get an unexpected request for money from someone you do recognize, speak with them to make sure the request really is from them — and not a hacker who got access to their account.

If you paid a scammer with a mobile payment app, report it to the Federal Trade Commission at ReportFraud.ftc.gov. When you report a scam, you help the FTC and other law enforcement agencies stop scams.

As always, Pass It On to friends and family, and have a safe and healthy summer!

This article was written by Catherine Blinder, chief education, and outreach officer of the Department of Consumer Protection of the State of Connecticut. To learn more about how the Department of Consumer Protection can help, visit us online at www.ct.gov/dcp.