NY Attorney General Warns of ‘Pig Butchering’ Scams as Crypto Fraud Losses Surge

New Yorkers face escalating “pig butchering” investment scams draining life savings through fake crypto platforms, prompting Attorney General Letitia James to issue a stark warning and prevention guide as fraudsters deploy increasingly sophisticated digital tactics.

‘Pig Butchering’ Scams Cost Victims Thousands to Millions, NY AG Says

Consumer protection efforts continue to target evolving financial fraud schemes. New York Attorney General (NYAG) Letitia James issued a consumer alert and online guide on Feb. 17, warning residents about “pig butchering” scams and outlining steps to prevent investment-related losses.

“Heartless scammers are using increasingly sophisticated means to prey on communities looking for connection and opportunity,” Attorney General James stated. “These fraudsters go to great lengths to gain trust and convince people to send them their savings, sometimes ruining their victims’ finances.”

The alert describes how perpetrators typically approach targets through social media, dating applications, unsolicited text messages, or online advertisements before shifting conversations to encrypted platforms such as Wechat or Whatsapp. The guidance explains:

“After scammers gain the confidence of their victims, they introduce them to a trading or investment opportunity, often in cryptocurrency or foreign currencies.”

Fraudsters cultivate personal or professional relationships over weeks or months, then present purported crypto or foreign exchange platforms supported by fabricated screenshots, luxury images, or counterfeit websites mimicking legitimate financial institutions.

Pig butchering scams, though increasingly visible, are not new; they represent an evolution of long-standing confidence fraud. The FBI has tracked these crypto-investment schemes for years, noting a major surge since 2019. In response, the Bureau launched Operation Level Up in January 2024, a proactive initiative that has already identified over 8,100 victims and saved an estimated $511 million by interdicting transactions before they reached scam compounds. By late 2025, the FBI further intensified its efforts through the Scam Center Strike Force, a multi-agency task force dedicated to dismantling the transnational criminal networks running these operations. Through blockchain tracing and domain seizures, the FBI continues to move from reactive reporting to active disruption.

The NYAG office outlines how victims are shown false account balances reflecting significant gains, prompting larger deposits over time. It emphasizes: “After the victims have deposited substantial sums of money into the scammer’s platform, ranging from tens of thousands to over a million dollars, they will be unable to withdraw their funds or will be asked to prepay fake withdrawal fees or taxes with the promise that their investment gains will be released.” The NYAG office cautioned:

“Eventually, the scammers will cut off contact and keep their victims’ money.”

James urged New Yorkers to remain cautious when approached with unsolicited investment opportunities involving bitcoin, cryptocurrency transfers, wire payments, cash couriers, or bitcoin ATMs. She advised residents to independently research anyone soliciting funds, consult qualified legal or financial professionals before committing capital, and avoid rushing into transactions that promise unusually high returns. Individuals who suspect fraud can report incidents to the Office of the Attorney General online, with identifying information safeguarded under applicable laws and policies.