New Mexico Securities Division Issues Alert on 'Pig Butchering' Scam Targeting Vulnerable Populations

SANTA FE, N.M. — The New Mexico Securities Division of the Regulation and Licensing Department is urging consumers, particularly seniors and those with limited social contacts, to exercise caution as they issue a warning about a 'pig butchering' scam that has been increasingly preying on unsuspecting victims this holiday season.

In a public advisory released today, the state's securities regulatory body shed light on the deceptive tactics used by fraudsters to manipulate individuals, often over an extended period, resulting in the loss of significant life savings. Benjamin Schrope, Acting Director of the New Mexico Securities Division, expressed deep concern about the potential harm caused by this scam as the state's senior population is projected to increase significantly in the coming years.

The 'pig butchering' scam differentiates itself from typical fraudulent schemes by its lengthy and deceptive approach. Victims are initially contacted through text messages or voicemails, often from unfamiliar numbers. The scammer, posing as an innocent and friendly individual, initiates a conversation that gradually shifts toward discussions of cryptocurrency and investment opportunities. Over time, the perpetrator 'fattens up' the victim, building a false sense of trust before ultimately 'butchering' them for their life savings.

Seniors and those with fewer social contacts should remain vigilant and watch for the following red flags associated with this scam:

• Unsolicited Contact: Be cautious of random, non-initiated communication from unknown individuals attempting to establish a relationship.

• Unsolicited Investment Offers: Avoid unsolicited investment offers received via email, social media, or telephone.

• Too-Good-to-Be-True Returns: Exercise skepticism when presented with investment opportunities promising returns that seem too good to be true.

• Urgency Tactics: Be wary of scammers employing pressure tactics to create a false sense of urgency.

• Fraudulent Advertisements: Watch out for fraudulent advertisements on the internet or social media promoting investment opportunities.

• Crypto Transfer Requests: Refrain from transferring your legitimate cryptocurrency investments to alternate crypto addresses under the control of criminals.

This deceptive scam has its origins in Asian organized crime groups and initially targeted victims in China before spreading to the United States. Scammers often use trafficked individuals to perpetuate this scheme and rely on official training manuals to execute it. Despite being one of the leading scams reported to the FBI, it remains significantly underreported.

To prevent falling victim to this scam or similar frauds, individuals are advised to exercise caution when engaging with strangers online, refrain from sharing personal or financial information with recently met individuals, and scrutinize investment opportunities meticulously.

Should individuals suspect they have encountered a 'pig butchering' scam or any form of financial fraud, they are urged to act promptly, cease any financial transactions, and report the incident to the appropriate authorities. Detailed records of all communications and transactions related to the scam should be maintained.

For additional resources and information on 'pig butchering' scams, individuals can visit the New Mexico Securities Division's website at rld.nm.gov/securitiesdivision/ pig-butcheringscams.

For reporting such scams, victims are encouraged to contact their local police or FBI office, the New Mexico Securities Division at 505-4764580, or the New Mexico Aging and Long-Term Services Department at 1866-654-3219 in cases involving suspected senior abuse.