Understanding, Spotting, and Preventing Devastating Romance and Investment Schemes

Understanding, Spotting, and Preventing Devastating Romance and Investment Schemes

Author: Jeff Weeks, Senior Vice President and Chief Information Security Officer

Two especially sneaky frauds are becoming well-known in the always-changing terrain of cybercrime: pig butchering investment and romance schemes. Both take advantage of human feelings and trust to cause major emotional and financial harm. This article will help you understand these schemes, spot them, and avoid becoming a victim.

Pig Butchering Investment Schemes

What are pig butchering investment schemes? The process of fattening a pig before slaughter gives rise to the phrase "pig butchering." In this type of investment fraud, scammers establish rapport with the victim over time, winning their trust and persuading them to fund bogus projects or investments. They usually involve using cryptocurrencies or convincing the victim to share banking information.^{1, 2} At the end of a pig butchering scheme, the victim typically finds that their entire investment has been stolen, leaving them with significant financial losses. The scammers often cut off all communication, making it nearly impossible for the victim to recover their funds or trace the perpetrators.

How to Recognize Pig Butchering Investment Schemes

The fraud may start with an unexpected message on social media. The scammer then builds a relationship with the victim. To establish confidence, the fraudster spends weeks or months developing rapport, sharing personal experiences, and even creating fictitious pictures of themselves.

Once confidence is developed, the discussion moves to investment prospects, usually accompanied by high-return guarantees. Certain bad actors even offer courses on social media sites. To encourage bigger donations, scammers share fake dashboards showing an exponential increase in the victim’s money.^{1, 2}

The fraudster may ask the victim to join a group discussion on another platform, such as WhatsApp, where several phony accounts, controlled by the scammer, discuss significant investment gains.

How to Avoid These Investment Schemes

Uninvited messages should be viewed with suspicion, particularly those that quickly center on financial concerns. Never jump into financial decisions based just on internet contacts. Instead, contact a financial advisor.

Romance Schemes

Romance schemes are a type of fraud where scammers establish false online profiles to win a victim’s affection. Once confidence is built, they manipulate the victim into giving them money or sharing personal details so the scammer can commit future fraud.^{3, 4}

How to Recognize a Romance Scheme

The fraudster usually exhibits romantic behavior and expresses strong love or deep passion quickly. The scammer often claims to be working overseas or in the military and always makes excuses to avoid personally meeting. When they think they have the victim hooked, they will ask for money for a trip, expenditures, emergencies, or other pressing needs.^{3, 4}

How to Avoid These Schemes

Be wary of internet relationships that advance too fast. Check the person's pictures and information using internet searches. Talk about your web contacts with family members or friends. If they are skeptical, it’s a good sign you should be too. Finally, never forward financial information or money to someone you have not personally met.

Getting Help

If you, a friend, or a relative falls victim to one of these investment schemes, act fast:

• Contact your local law enforcement and file a report with the FBI’s Internet Crime Complaint Center (IC3)³.
• Notify your bank or financial institution to prevent further unauthorized transactions.
• Seek support from organizations like the Federal Trade Commission (FTC) and consumer protection agencies⁴.
• Consider consulting with a lawyer to understand your options and protect your rights.

Expanding knowledge and being aware can help you to guard others and yourself from falling victim to these destructive romance and investment schemes. And remember, if something seems too good to be true, it probably is.

About the Author
Jeff has been with First National Bank of Omaha for more than 25 years and is currently the Senior Vice President and Chief Information Security Officer. The executive leadership and oversight provided by Jeff in the development, management, and execution of information security for FNBO enables the company’s ability to posture and protect private, personal information, and assets of the company’s clients, employees, and business partners.