Quick Answer: New York Attorney General Letitia James issued a consumer alert on February 17, 2026, warning about “pig butchering” scams — long-term fraud schemes where scammers build fake relationships before convincing victims to invest in fraudulent cryptocurrency platforms. The FBI reports $5.8 billion in losses from cryptocurrency investment scams in 2024 alone. Victims lose an average of $115,000, and over three-quarters lose more than half their net worth.
A scammer messages you out of the blue. Maybe it’s a wrong number text. Maybe a new match on a dating app. The conversation is warm, natural, and builds over weeks or months. Then they mention a “great investment opportunity.” That’s when the slaughter begins.
The term “pig butchering” comes from the Chinese phrase shā zhū pán — the scammer “fattens” the victim with trust before “butchering” them financially. It’s one of the fastest-growing fraud categories in the world, and New York Attorney General Letitia James just issued a consumer alert warning residents to be on guard.
Every weekday I read the enforcement actions, filings and fine print the outlets skip, and turn them into the one or two moves that actually improve your position — a rate worth moving for, a fee you can refuse, a deadline to beat before it costs you.
In the latest issue (Sep 11): You drive to the dealership to pick up the car. There is no car. There was never a car.
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How the Scam Works
According to the NY AG’s consumer alert, pig butchering scams follow a predictable pattern:
- Contact — Scammers reach out via social media, dating apps, random texts, or online ads. The initial message seems innocent or even accidental (“wrong number”)
- Build trust — The conversation moves to encrypted platforms like WhatsApp or WeChat. Over weeks or months, the scammer poses as a romantic partner, friend, or financial advisor
- The pitch — Once trust is established, they introduce a “guaranteed” cryptocurrency or foreign currency investment opportunity
- Fake profits — Victims are shown screenshots of impressive returns on fraudulent websites designed to mimic legitimate trading platforms
- Escalation — Encouraged by fake gains, victims invest more — first cash on hand, then savings, then retirement accounts, sometimes even borrowing money
- The slaughter — When victims try to withdraw, they’re told they owe “taxes” or “fees” (more stolen money), or the platform simply disappears
The Retirement Danger: Scammers specifically target people with substantial savings. A survey of 550 pig butchering victims found that over three-quarters lost more than half their net worth, and a third ended up in debt. These schemes destroy retirement accounts, force home sales, and wipe out decades of savings in weeks.
The Numbers Are Staggering
According to the FBI’s 2024 Internet Crime Report:
- $5.8 billion in cryptocurrency investment scam losses reported in 2024 — a 47% increase over 2023
- 41,557 complaints filed with the FBI’s IC3 — up 29% from the prior year
- $9.3 billion total in cryptocurrency-related fraud — a 66% increase over 2023
- 59 suicide interventions by the FBI’s Operation Level Up — victims referred for crisis support after losing everything
The FBI’s Operation Level Up has notified over 5,800 victims before they lost more money, saving an estimated $359 million. But for every person the FBI reaches in time, thousands more are already trapped.
Real Victims, Real Devastation
These aren’t just numbers. A Lombard, Illinois widow lost nearly $1 million — her entire life savings — and was forced to sell her home and all her belongings. A Bitcoin investor lost his full retirement savings despite his financial advisor’s urgent warnings not to transfer the money.
The victims aren’t careless. They’re professionals, retirees, and educated people who were systematically manipulated by trained criminals operating from scam compounds in Southeast Asia — many of whom are themselves trafficking victims forced to work as scammers.
The Human Trafficking Dimension: Many pig butchering operations are run from compounds in Cambodia, Myanmar, and Laos where workers are lured with fake job offers, have their passports confiscated, and are forced to scam people under threat of violence. In September 2025, the U.S. Treasury sanctioned companies operating scam centers in Myanmar and Cambodia. The DOJ indicted Cambodia’s Prince Group and founder Chen Zhi on wire fraud and money laundering charges.
The True Crime Connection
I’ve investigated this type of crime in depth. My true crime podcast covered one devastating case: How a Kansas Banker’s Crypto Mistake Destroyed a Town — the story of Shan Hanes, a bank CEO who was himself pig-butchered and then embezzled $47 million from his bank’s customers, devastating the small town of Elkhart, Kansas.
It’s a case that shows how pig butchering doesn’t just destroy individual victims — it can take down entire communities.
Red Flags from the NY Attorney General
The NY AG’s consumer alert identifies these warning signs:
Red Flags
- Demands for secrecy about the relationship or investment
- They interfere when you try to verify with your bank or broker
- Requests for personal financial information or private photos
- Promises to meet in person that never materialize
- Instructions to use couriers, cash, or Bitcoin ATMs
- Pressure to move conversations to encrypted platforms
- Guaranteed returns on cryptocurrency investments
Protect Yourself
- Never send money, crypto, or gift cards to someone you’ve only met online
- Research anyone soliciting you — photos and names may be stolen or AI-generated
- Be suspicious of time pressure (“this opportunity won’t last”)
- Consult a trusted financial advisor before investing
- Report to the platform and law enforcement — save all communications
- Talk to someone you trust — scammers isolate victims deliberately
What to Do If You Think You’ve Been Targeted
- Stop sending money immediately — No matter what the scammer says about “fees” or “taxes” needed to release your funds
- Report to the FBI — File at ic3.gov
- Report to the FTC — File at ReportFraud.ftc.gov
- Contact the NY AG — If you’re in New York: 1-800-771-7755 or file online at ag.ny.gov
- Contact your bank — If you wired money, your bank may be able to initiate a recall
- Seek crisis support — The National Suicide Prevention Lifeline is 988. Financial loss of this magnitude creates genuine crisis
Already in Debt from a Scam? If a pig butchering or investment scam has left you with significant debt, take the free Find Your Path quiz to understand ALL your options for dealing with the aftermath — including options you may not have considered. If you signed any contracts with companies promising to help recover your money, run them through the Contract Decoder first — recovery scams that target existing victims are extremely common.
The worst financial scams don’t steal your money first. They steal your trust. Everything else follows.— Steve Rhode
Key Takeaways
- NY AG Letitia James issued a consumer alert on February 17, 2026, warning about pig butchering scams
- The FBI reports $5.8 billion in cryptocurrency investment scam losses in 2024 — up 47% from the prior year
- The average victim loses $115,000, with over 75% losing more than half their net worth
- Scammers build fake relationships over weeks or months before introducing fraudulent investment platforms
- Many operations are run from forced labor compounds in Southeast Asia
- The FBI has made 59 suicide interventions among victims who lost everything
- Never send money to someone you’ve met only online, regardless of how genuine the relationship feels
Frequently Asked Questions
What is a pig butchering scam?
A pig butchering scam is a long-term fraud scheme where scammers build fake relationships with victims — often through dating apps, social media, or random texts — before convincing them to invest in fraudulent cryptocurrency platforms. The term comes from the Chinese phrase meaning to “fatten” a pig before slaughter, referring to how scammers invest weeks or months building trust before stealing the victim’s money.
How much money do pig butchering victims lose?
According to the FBI’s 2024 Internet Crime Report, Americans reported $5.8 billion in losses from cryptocurrency investment scams, including pig butchering. A survey of 550 victims found the average loss was $115,117. Over three-quarters of victims lost more than half their net worth, and a third ended up in debt.
How do I know if I’m being targeted?
Red flags include: an unexpected message from a stranger that leads to a surprisingly easy friendship or romantic connection, conversations that move to encrypted platforms like WhatsApp, discussions about “guaranteed” investment returns in cryptocurrency, pressure to keep the relationship or investment secret, and reluctance to meet in person or verify their identity through a video call.
What should I do if I’ve already lost money?
Stop sending money immediately, regardless of claims about “taxes” or “fees” needed to withdraw. Report to the FBI at ic3.gov and the FTC at ReportFraud.ftc.gov. Contact your bank about potential wire recalls. If the loss has put you in debt, take the free Find Your Path quiz at GetOutOfDebt.org to understand all your options. If you’re in crisis, call 988 for the Suicide and Crisis Lifeline.
Are pig butchering scammers ever caught?
Yes, though enforcement is challenging because most operations run from overseas. In September 2025, the U.S. Treasury sanctioned companies operating scam centers in Myanmar and Cambodia. In October 2025, the DOJ indicted Cambodia’s Prince Group and its founder on wire fraud and money laundering charges. The FBI’s Operation Level Up has saved an estimated $359 million by identifying and notifying victims before they lost more money.
(Source: NY Attorney General Consumer Alert | FBI 2024 IC3 Report | FBI Operation Level Up)
Part of the Investment Fraud Pattern Guide: This post is one case study in my complete Investment Fraud Pattern Guide — 30 years of documented schemes, the five patterns they all share, and the checks that would have stopped each one before a dollar was lost.
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