Online shopping continues to be popular with consumers, and many brick-and-mortar businesses either began or improved their efforts in the digital space. Ads for great online deals are everywhere, tempting consumers with great prices and free shipping. It's important to exercise caution though, as scammers are known for preying on online consumers, taking advantage of the hard-to-find items by creating fake websites and substandard products and offering them at “too good to be true” prices.
Sometimes, consumers find what they ordered is different from what they got. Many ads pop up with enticing gadgets, cute merchandise, or items with subliminal "I gotta have it" messages, making it irresistible to click and check them out. Unfortunately, some of these companies are different from what they seem. Some consumers find that once the order is placed, the company doesn't send the product, or it needs to be of better quality.
How can you be sure the websites where you shop are legitimate?
Check the seller’s reviews and ratings. These exist on various platforms. The Better Business Bureau (BBB) website is a great source as it includes authentic, verified reviews that can be accessed from a company’s BBB profile. When reading reviews, look for trends – positive or negative – and take note of how the company responds.
Check for a secure website. Look for the “https://” URL structure in the company’s web address, as well as the padlock symbol in the address bar. These verify you’ve got a secure connection and encryption of your data.
Check for contact information. Whether it’s a street address, an email, or a phone number, contact information is crucial in giving you a way to contact a company.
Once you've verified the site is legitimate, here are some additional protections you can implement:
Shop with a credit card. In a fraudulent transaction, a credit card provides additional protection; it’s easier to dispute charges you didn’t approve or get your money back if there is a problem.
Create strong passwords. For every online account you use – take the time to create a strong password. And when you’re logging into your accounts, enable two-factor authentication for added security.
What is Pig Butchering and How to Spot the Scam
“Pig butchering” is a scam that has been seen in the headlines quite frequently lately. The unsettling term for these scams, pig butchering, suggests that scammers take their time to “fatten up” their victims and take as much money as they can. These scams are very similar to romance scams and other cryptocurrency scams.
As pig butchering scams have proliferated, they seem to share these traits in common:
“Accidental” contact: Scammers often pretend they contacted the potential victim by mistake. While contact can occur through texts, it can also happen through social media DMs, dating sites, or other electronic communications.
Crypto investment: After conversing with the target, the scammer will try to persuade them to invest in a cryptocurrency or platform. They may also suggest gold trading or forex (foreign exchange markets). In pig butchering, all these “investments” are fabrications, and the money goes straight into the scammer’s pocket.
Extended contact: The scammer will insist on continued investment once they have hooked a victim. They might produce fake charts or even send over small “withdrawals” to convince the victim. Sometimes a target is directed to a fraudulent app that mimics financial platforms like Robinhood or Coinbase. Once the victim catches onto the scam or seems to be tapped dry, the scammer ends contact and disappears.
How the scam works Scammers can buy batches of phone numbers stolen in data breaches or phone numbers from legal data brokers. They then send fake messages to millions of phone numbers hoping someone will respond. Once a person responds, even with “you have a wrong number,” the scammer will strike up a conversation.
At some point, the conversation will pivot to investment opportunities. The scammer might say they know about a great new cryptocurrency or a trading platform. They will make the investment sound as legitimate as possible by sharing screenshots or sending pics of their apparently glamorous lifestyle. Sometimes, victims are added to a group chat with many people discussing investments. The group is all scammers, or it might just be one person using multiple profiles.
If you agree to invest, the scammer will focus on getting you to invest more money. They will share doctored images showing incredible returns. They might control an app or website with which you can engage. In rare cases, they might even send you some money as a fake withdrawal or dividend.
Pig butchering scammers are ruthless – after you have “invested” all the money you have at hand, they will ask you to dig into retirement savings, and then try to convince you to go into borrow money and go into debt. If you ask for your money back, the scammers might agree but then claim they need more money to handle “tax problems” or brokerage fees.
Once the scammer decides that the pig is thoroughly butchered, they will cut off communication. This usually happens after they are convinced the victim has no more money to steal or the victim becomes suspicious. If the scammer can access the victim’s bank account, they will empty it.
How to Avoid These Scams
The best way to avoid becoming a victim is to be suspicious of any seemingly mistaken contact. This includes texts, messaging services like WhatsApp, online dating platforms, and social media. As generative AI becomes widespread, “wrong number” phone calls and even video calls could be pig butchering scams. These texts can be simple (“Hi.”), conversational (“Long time, no see”), and even downright whimsical, suggesting an intriguing story (“It’s been forever since our last charity gala!”). A good rule of thumb is to never respond to any communication from a stranger. Don’t even tell them they are texting the wrong number.
Here are some general red flags to look out for:
Seemingly accidental or mistaken contact, but the person wants to keep talking.
Conversation turns to investments in cryptocurrency, gold markets, or forex.
Continued, sustained contact to encourage repeat theft.
If you think you are a victim, stop all contact with the suspicious person and stop investing money. Report the crime to your bank and IC3 right away. The longer you wait, the harder it is to reverse fraudulent transactions.
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