Guides › Crypto Investment Scams ("Pig Butchering")

Crypto Investment Scams ("Pig Butchering")

How it works

It often starts with a "wrong number" text or a contact on social media or a dating app. The person becomes a friend or romantic interest over weeks, then shows you how they "make money" on a crypto trading site or app. The site shows big gains, but it's fake. When you try to withdraw, you're told to pay "taxes" or "fees" first, and the money never comes back. The FBI calls this cryptocurrency investment fraud.

Red flags

• A stranger who reaches out and quickly turns the talk to investing
• Promises of guaranteed or unusually high returns
• A trading site or app they recommend that you've never heard of
• Being asked to pay fees or taxes before you can withdraw

Only invest through platforms you looked up yourself, and never because someone you met online told you to.

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If you already paid

Act fast. The FTC's advice depends on how you paid:

• Credit or debit card: call the card company, report the fraudulent charge and ask them to reverse it.
• Bank transfer or wire: contact your bank or the wire company (such as Western Union or MoneyGram) right away and ask them to reverse the transfer.
• Payment app (Zelle, Cash App, Venmo): report it to the app and to your bank, and ask for a reversal.
• Gift card: contact the company that issued the card, tell them it was used in a scam, and keep the card and receipt.
• Cryptocurrency: crypto payments usually can't be reversed. Contact the exchange you used and report to IC3.gov.
• Cash by mail or courier: report it to the U.S. Postal Inspection Service or the delivery company and the FTC.
• You gave a password or code: change that password now, turn on two-step verification and check for changes you didn't make.
• You gave your Social Security number: visit IdentityTheft.gov and consider a free credit freeze with Equifax, Experian and TransUnion.

Watch for "recovery" scams. Anyone who contacts you offering to get your money back for a fee is likely another scammer.

How to report it

• FTC: ReportFraud.ftc.gov. If your personal information was misused, also go to IdentityTheft.gov for a recovery plan.
• FBI: IC3.gov (the Internet Crime Complaint Center), especially if you lost money online or in crypto.
• Your bank or card company: call the number on the back of your card or on your statement, not one from the message.
• Scam texts: forward them to 7726 (SPAM), then delete and block.

Sources: FTC consumer advice (consumer.ftc.gov) and FBI IC3 public service announcements. Last reviewed 2026-10-12.