Pig Butchering Scams: How Fake Investment Romances Work and Where to Report

It often starts with a text that looks like a mistake. “Hi, is this Jenny? Are we still on for golf Saturday?” You reply to say they have the wrong number. They apologize, they’re friendly, and the conversation keeps going. Over the next few weeks, you become friends, maybe more. Eventually, they mention how well they’ve done trading crypto or gold, and they offer to show you how.

This is a pig butchering scam, and it’s the costliest type of fraud reported to the FBI. In its 2025 Internet Crime Report, the FBI said cryptocurrency investment fraud was the highest source of financial losses to Americans in 2025, with $7.2 billion in reported losses.

This guide explains each stage of the scam, how the fake trading platforms work, the warning signs, and exactly where to report if it’s happening to you or someone you love.

What “pig butchering” means

The name comes from a Chinese term, “sha zhu pan,” which loosely translates to pig butchering. The US Treasury’s Financial Crimes Enforcement Network (FinCEN) explained in a September 2023 alert that scammers call victims “pigs” and talk about “fattening” them with trust and fake profits before “butchering” them by taking everything.

These aren’t lone scammers. According to FinCEN and the FBI, the scams are largely run by organized criminal groups based in Southeast Asia. Many of the people sending the messages are themselves victims of human trafficking, forced to work in scam compounds.

Key takeaway: A pig butchering scam is a relationship first and an “investment” second. By the time money comes up, the victim already trusts the scammer, which is exactly why it works.

The 5 stages of a pig butchering scam

Stage 1: The first contact

FinCEN says scammers typically reach out through text messages, social media direct messages, dating sites or professional networking sites. Common openers include a “wrong number” text or a message pretending to reconnect with an old friend. Profiles often show an attractive person with a wealthy, enviable lifestyle: travel, luxury cars, fine dining.

The FBI notes that scammers quickly move the conversation to a messaging app such as WhatsApp, Telegram or similar platforms.

Stage 2: Building trust

This phase can last weeks or months. The scammer messages daily, asks about your life, shares “their” struggles and may profess romantic interest. They rarely, if ever, agree to a live video call, or they offer excuses about bad connections. Some scam operations now use AI tools to keep many conversations going at once.

Stage 3: The investment pitch

Once you trust them, they mention their success trading cryptocurrency, gold or foreign currency, often credited to an uncle or a mentor with “insider” knowledge. They offer to teach you. FinCEN describes scammers directing victims to investment websites or apps that look legitimate but are controlled by the scammer. In some cases, they walk you through buying crypto on a real exchange first, then sending it to the fake platform.

The FBI also describes victims being added to “investment groups” posing as knowledgeable industry insiders.

Stage 4: The fattening

Your account on the platform shows impressive gains, but they’re fabricated numbers on a screen. FinCEN notes scammers sometimes let victims withdraw a small amount early to build confidence. Then come the pushes to invest more: a limited-time opportunity, a VIP tier, a matching bonus. The FBI says victims are sometimes offered “loans” to make bigger investments. FinCEN has reported victims cashing out retirement accounts and taking out home equity lines of credit or second mortgages to keep investing.

Stage 5: The butchering

When you try to withdraw your balance, the platform suddenly requires payment of “taxes,” “fees,” “security deposits” or a “release” charge. The FBI says this is a final attempt to extract more money before the scammers disappear with everything. Your account may be frozen, the scammer goes silent, or they blame you for the problem.

How fake trading platforms look real

The platforms are the core of the con. Here’s what makes them convincing and how to see through them:

FinCEN also flagged scams using legitimate apps with third-party plugins that let scammers falsify what victims see, and fake “play-to-earn” games built to steal crypto.

Red flags to watch for

• A stranger who contacted you by “mistake” and keeps chatting
• Someone who quickly moves you to a different messaging app
• A new online friend or romantic interest who won’t video chat
• Talk of guaranteed or unusually high returns from crypto, gold or forex
• Pressure to use a specific trading website or app they recommend
• Requests to buy crypto and send it to a wallet address they give you
• Requests for remote access to your phone or computer to “help” set up accounts
• Encouragement to keep the investment secret from family or your bank
• Withdrawal blocked until you pay taxes or fees upfront
• Urging you to borrow, take out a loan or cash out retirement savings

If you’re unsure whether an investment professional or firm is real, check them on FINRA BrokerCheck or the SEC’s Investor.gov. Be aware that scammers sometimes impersonate legitimate firms, so look for mismatched website addresses and contact details.

If you think you’re being scammed

Stop sending money immediately. Don’t pay any withdrawal fee or tax, because you won’t get your money back by paying more. Then:

1. Stop all contact with the person and the platform. Don’t announce that you’ve caught on; just stop responding.
2. Save evidence: screenshots of chats, the platform’s website address, wallet addresses, transaction IDs, bank transfer records and the scammer’s profiles.
3. Contact your bank and any crypto exchange you used. Ask whether any pending transfers can be stopped, and tell the exchange the destination wallet addresses.
4. Report to the FBI’s Internet Crime Complaint Center at ic3.gov. Include wallet addresses and transaction hashes, which can help investigators trace funds.
5. Report to the FTC at ReportFraud.ftc.gov.
6. Report investment fraud to regulators if relevant, such as the SEC through its tips portal or the CFTC for crypto and forex fraud.
7. Secure your accounts. If you gave anyone remote access, remove the software, change passwords and turn on two-factor authentication.
8. Freeze your credit if you shared your ID or Social Security number. See how to freeze your credit.

Beware of recovery scams

The FBI warns that victims are also targeted by recovery scams, where someone claims they can get your lost funds back for a fee. They may pose as lawyers, blockchain investigators or even government agencies. Legitimate law enforcement won’t charge you to recover money. For broader recovery steps, read what to do if you got scammed.

How to protect yourself and your family

• Don’t engage with wrong-number texts. Delete them. Our guide on how to spot a scam text covers common openers.
• Never invest on a platform someone you met online recommends, no matter how long you’ve known them.
• Verify identities. A live video call isn’t foolproof, because deepfakes are improving, but refusal to ever appear on camera is a strong warning sign.
• Talk openly with older relatives. Victims are often embarrassed and isolated. Make it easy for them to ask, “Does this sound right?”
• Pay attention to big changes, such as a parent suddenly buying crypto, visiting crypto ATMs or talking about a new online friend’s investment advice.

If you’re curious about legitimate digital asset markets and how they’re regulated, our explainer on tokenization of real-world assets shows what real institutional activity looks like.

Where to start if someone you love is a victim

1. Approach without judgment. Shame keeps people paying.
2. Help them stop sending money and save evidence.
3. Make the reports with them: bank, ic3.gov and ReportFraud.ftc.gov.
4. Watch for recovery scammers and new “friends” who contact them.
5. Encourage emotional support. The FBI has reported referring some victims to victim specialists because of the severe distress these scams cause.

The bottom line

Pig butchering scams combine a fake relationship with a fake trading platform and can take life savings. The pattern is predictable: unsolicited contact, weeks of trust-building, an investment pitch, invented profits and a demand for fees to withdraw. If a person you’ve only met online wants you to invest, stop, don’t pay any fee to “release” funds, and report it at ic3.gov.

This is general information, not legal or financial advice.

Sources

• FBI IC3: 2025 Internet Crime Report — $7.2 billion in cryptocurrency investment fraud losses, scam methods, withdrawal fees, recovery scams, Operation Level Up
• FinCEN Alert FIN-2023-Alert005 on “pig butchering” (September 8, 2023) — origin of the term, stages of the scam, fake platforms, forced labor, red flags
• FINRA BrokerCheck — checking whether brokers and firms are registered
• SEC Investor.gov — investor education and checking investment professionals