Oregon regulators warn of ‘pig butchering’ schemes

SALEM Ore. (KPTV) – Oregon regulators are taking time to warn residents about ‘pig butchering’ scams.

According to the Oregon Division of Financial Regulation, the term ‘pig butchering’ comes from the practice of fattening a pig before slaughter, with online scammers often gaining the trust of the victim through a romantic or friendly connection.

In typical ‘pig butchering’ schemes, the scammer then convinces the victim to give money to fake investments, all while lying about the investment’s growth. The scammer will then ask for more money, demanding fees if the victim attempts to withdraw funds, according to the Oregon DFR.

Oregon regulators say to be aware of the following signs:

Unexpected contact: Never respond to unsolicited messages from unknown contacts, even about seemingly benign topics, especially via text message and on encrypted messaging applications.
Refusal to participate in video chats: If someone you consistently have been messaging with declines to interact face to face, they likely are not the person from the profile photo.
Request for financial information: Don’t share any personal financial information with anyone you have never met in person. If a new virtual friend or romantic connection starts making financial inquiries, put the brakes on the relationship.
Invitation to invest in specific financial products: Be wary of any unsolicited investment advice or tips, particularly from someone you have spoken to only online and even if they suggest you trade through your own account. Always question what a source has to gain from sharing tips with you and whether the transaction fits with your financial goals and investment strategy.
Unknown or confusing investment opportunity: Carefully evaluate the product, as well as the person or company requesting your investment. Along with a basic search, try adding words such as “scam” or “fraud” to see what results come up. Consider running recommendations by a third party or an investment professional who has no stake in the investment and use FINRA BrokerCheck to see if the promoter is a registered investment professional.
Unfamiliar trading platforms: Do extensive research before moving any money, particularly in an emerging market such as cryptocurrency, which has hundreds of exchanges and new avenues for trading continuing to evolve. Who controls the platform? What security measures are in place? How can you withdraw funds if needed? If you don’t know the answers to those questions, don’t put your assets there.
Exaggerated claims and elevated emotions: Take a closer look at any investment that offers much higher than average returns or is touted as “guaranteed.” Fraudsters will also often use their knowledge about you to appeal to your emotions – something like, “Don’t you want to have money to send your kids to college?”
Sense of urgency about an upcoming news announcement or share price increase: Remember that insider trading is illegal, and you should never trade in shares of a company on the basis of material, nonpublic information.

“Romance scams and crypto scams continue to be the source of significant losses for consumers,” said DFR Administrator T.K. Keen. “Consumers who receive contacts out of the blue through messaging apps on their phone or other means should be especially suspicious of those trying to entice them into cryptocurrency investments.”

Officials say $3.31 billion was lost in 2022 due to investment fraud, with ‘pig butchering’ schemes rising over 183 percent from 2021.