April 8, 2025
By: Melanie T. Devoe, Director, Customer Education and Outreach, CFTC
Commodity Futures Trading Commission, Office of Customer Education and Outreach
Scammers use smart phones, social media, and cryptocurrency to steal billions of dollars from Americans. One of the most devastating scams is a mash-up of romance and investment fraud led by large-scale, international organized crime gangs.
Known as sha zhu pan (杀猪盘) in Chinese, or pig butchering in English, relationship investment scams use dating apps, social media platforms, such as Facebook, Instagram, and LinkedIn, messaging apps, and random “wrong number” text messages to target possible victims. Once introduced, the fraudsters try to build an online relationship sharing frequent messages, pictures, videos, and gifts.
The new online “friend” appears attractive and professional. He or she claims to have made a lot of money trading cryptocurrency, precious metals, or foreign currency, thanks to special knowledge or insider help. The scammers talk about how easy it is, how much they make, and offer to help the targets earn extra money. Targets are then directed to a fraudulent trading platform operated by the same criminal gangs.
Victims see their balances on the scam websites grow substantially and are encouraged to withdraw small amounts of money to spend on themselves.
This is another ploy to build trust. Research reveals victims transfer an average of 10 payments to the platform, each larger than the last until they are financially drained. The FBI received reports of losses of nearly $4 billion in 2023, but actual losses may be many times higher due to underreporting.
Older victims tend to lose the most
This scam doesn’t discriminate. People of all ages, genders, backgrounds and walks of life have been harmed. However, older victims, who tend to be frequently targeted by fraud, lose the most. They may also be susceptible to physiological changes that affect financial decision-making. Changes in levels of trust, working memory, fluid memory, risk-taking, and self-control have all be linked to aging.
Technology compounds the problem. Artificial intelligence makes it easier for scammers to create convincing websites and communicate. Cryptocurrency makes it easier to transfer vast amounts of wealth internationally, obscures the recipients’ identities, and cannot be reversed—it’s like handing someone a bagful of digital cash.
Do not engage
The best way to avoid fraud is to tighten your defenses against it and not engage with whatever slips through. Following are some steps you can take:
· First, stay current on frauds. Research shows that awareness about scams may reduce vulnerability to those scams by up to 85 percent. Subscribe
to CFTC.gov emails or follow us on social media. Other sources include FINRA, the FBI, SEC, Federal Trade Commission, state regulators, and state and local law enforcement.
· Talk about fraud.
Warn family and friends or host an educational program for your community (contact the CFTC for assistance). If something looks too good to be true, it probably is. When in doubt, talk to a trusted friend or family member before giving money to someone you met online.
· Limit social media exposure. Check the privacy settings on all social media accounts to limit who can see your information and be careful how much you share.
· Report fraud. Visit cftc.gov/complaint or the FBI’s IC3.gov website.
This blog was prepared by the Commodity Futures Trading Commission’s Office of Customer Education and Outreach for general informational purposes only and does not provide legal or investment advice to any individual or entity. Please consult with your own legal advisor before taking any action based on this information. Any reference to an organization or corporation is for informational purposes only and does not constitute endorsement, recommendation, or favoring by the CFTC. The CFTC cannot attest to the accuracy of information in those non-CFTC references.