New York issues consumer alert on sophisticated crypto fraud schemes
New York Attorney General Letitia James has put out a stark warning about what’s known as ‘pig butchering’ scams. These are investment frauds that specifically target people through digital channels, and they’re becoming more common across the state.
The name comes from the way scammers ‘fatten up’ their victims with false promises before taking everything. It’s a particularly cruel form of fraud because it often involves building relationships over weeks or even months.
What’s happening is that people are being approached through social media, dating apps, or random text messages. The conversations start innocently enough—maybe about shared interests or personal connections. But then they gradually shift to investment opportunities.
How the scams actually work
After gaining someone’s trust, the fraudster introduces them to what seems like a legitimate trading platform. Usually it’s cryptocurrency or foreign exchange investments. They’ll show fake screenshots of huge profits, luxury lifestyle photos, and even create websites that look like real financial institutions.
The victims see their account balances growing—or so they think—and they’re encouraged to put in more money. Sometimes tens of thousands of dollars. Sometimes much more.
Here’s the catch: when people try to withdraw their supposed earnings, they’re told they need to pay fees or taxes first. Or the platform just stops working. Or the person they’ve been talking to disappears completely.
Law enforcement response is growing
This isn’t a new problem, but it’s definitely getting worse. The FBI has been tracking these schemes for years and noticed a significant increase since 2019. They’ve launched specific operations to combat them.
Operation Level Up, started in January 2024, has already identified over 8,100 victims. The FBI estimates they’ve prevented about $511 million from reaching the scammers by intercepting transactions. There’s also a Scam Center Strike Force that’s working across different agencies to take down the criminal networks behind these operations.
What’s interesting is how they’re using blockchain tracing to follow the money. It’s not just about taking reports after the fact anymore—they’re trying to disrupt the scams while they’re happening.
Practical advice for protection
Attorney General James has some straightforward advice for New Yorkers. First, be extremely cautious about unsolicited investment offers, especially those involving cryptocurrency, wire transfers, or bitcoin ATMs.
Do your own research on anyone asking for money. Don’t just take their word for it. Talk to a qualified financial professional before committing funds. And maybe most importantly: if an investment promises unusually high returns with little risk, it’s probably too good to be true.
People who think they might be dealing with a scam can report it to the Attorney General’s office online. The office says they protect identifying information under applicable laws.
I think what’s particularly concerning about these scams is how personal they are. They’re not just sending out mass emails—they’re building actual relationships with people. That makes them harder to spot and more damaging when they succeed.
The digital tools that make our lives more connected also make these kinds of fraud easier to execute. But the basic principles of protection haven’t changed much: be skeptical, do your homework, and don’t let urgency override common sense.
