By Randy Hutchinson
President of the BBB of the Mid-South
Reprinted from The Commercial Appeal
I wrote an earlier column about a growing crime called “pig butchering” in which victims are lured into a friendly, even romantic, online relationship and convinced to buy into a cryptocurrency investment opportunity. They’re coached to invest more and more money, provided statements showing wonderful profits, and maybe even allowed to cash in small amounts along the way. But eventually they find out the whole deal was a scam and they’re out all the money they invested.
A Maryland woman who thought she was making an 80 percent return on her investment ended up losing $3 million. An elderly Maryland man took his own life after losing his life savings in a pig butchering scam.
Many of these scams originate from scam compounds in Southeast Asia, the Middle East, Africa and South America. The woman cited above was contacted by the scammer through a Korean messaging app.
The good news, although it’s very much the exception rather than the rule, is that the FBI is able to proactively identify some victims of cryptocurrency investment fraud and prevent or mitigate their losses. Operation Level Up began in January 2024 and, in coordination with the United States Secret Service, has achieved these results as of
April 2025:
- Notified 5,831 victims of cryptocurrency investment fraud. 77% of those victims were unaware they were being scammed.
- Saved victims $359,243,303 at an average estimated potential loss of $135,000.
- Referred 59 victims to an FBI victim specialist for suicide intervention.
Some victims reported that they were in the process of liquidating their 401(k) account, selling their home, or obtaining a sizable loan to invest in cryptocurrency.
The FBI says to be aware of who you’re communicating with online and to watch out for these signs that you may be a victim of cryptocurrency investment fraud:
- Meeting someone online or through an unsolicited text message and having that person pitch an investment opportunity.
- If the person requests to move the conversation to an encrypted messaging application.
- Claims of high returns and a pressure to quickly invest.
- If the person you’re talking to requests that you limit contact with financial advisors and family.
- Difficulty trying to withdraw your funds or being required to pay previously undisclosed fees and taxes to withdraw your funds.
A common tactic in pig butchering and other scams is creating a false sense of urgency or isolation in the victim. Crooks may try to instill trust, induce empathy or fear, or promise monetary gains, companionship, or employment opportunities to lure victims into taking immediate action. The FBI’s “Take A Beat” awareness campaign urges the public to resist pressure to act quickly, pause for a moment, and assess the situation.
If you think you’re a victim of cryptocurrency investment fraud, immediately stop sending money and file a report with the FBI’s Internet Crime Complaint Center (IC3) at www.ic3.gov. The FBI can’t investigate every case, but you may be connected to an ongoing or future case and rapid reporting might lead to the recovery of lost funds.
But beware of crooks who try to double dip by claiming to be with law enforcement and offering to help you recover money for a fee or by giving them access to your accounts.