Don’t Be the Next Victim: Protect Yourself from the Quiet Scam Costing Americans Millions

By: Chip and Jamie Hunt

As an investment advisor, a recent Wall Street Journal article struck a personal chord with me. It tells the story of an older couple—responsible, successful people with over $5 million in retirement savings—who lost nearly everything to an online scam known as “pig butchering.”

Reading it stirred both outrage and sorrow – outraged that low-life criminals would so deliberately prey upon ordinary individuals (who’ve earned their money the hard way) and sorrow in knowing how devastating the consequences can be for such victims and their families. It’s tragic. Sadly, I’ve recently known of two personal friends, both of whom I thought “knew better,” nearly fall victim to similar schemes.

So, I must speak up about these scams.

What is Pig Butchering?

The term “pig butchering” might sound crude, but it’s a chillingly accurate description. Scammers fatten up their targets emotionally and psychologically—building trust over weeks or even months—before “butchering” them financially. Victims are led to believe they’re involved in a lucrative investment opportunity, often in cryptocurrency or foreign exchange.

Scammers—who often appear out of nowhere online—pose as friendly acquaintances, long-lost friends, or even potential romantic interests. They slowly encourage you to invest small amounts, promising strong returns, before pushing for larger sums. Once you’re deeply invested, both financially and emotionally, the scammer disappears, taking your money with them.

Red Flags and Warning Signs

1. A “Friend” You Haven’t Heard From Suddenly Has Investment Advice
   Maybe someone you barely remember from Facebook wants to share their “incredible success.” Maybe they casually mention how they’re making great returns trading crypto or forex. Be suspicious!
2. Promises of “Guaranteed” or “Risk-Free” Returns
   Real investments carry risk. “Risk-free returns” do not exist. Anyone promising otherwise is likely trying to sell you something—or steal from you. Don’t take the bait!
3. Being Asked to Move Money into Crypto or “Special” Trading Apps
   If someone is guiding you to unfamiliar platforms to “invest,” pause immediately!
4. Pushy or Overly Friendly Messaging
   Scammers often try to create emotional pressure—either with flattery, friendship, or urgency. Often threats are made to get you to act… a clear “red flag” for you to back off and shut down all communications! Real investments should never require rushed decisions or threats.
5. A Deal That Sounds Too Good to Be True

You know what they say. Trust that instinct!

Where Are These Scams Happening?

These online scams typically originate through:

• Facebook
• Instagram
• WhatsApp or text messages
• LinkedIn (less common but growing)
• Online dating apps

If you’re contacted out of the blue with financial advice or “a great opportunity,” that’s when your guard should go up.

How to Protect Yourself

• If a “Friend” Posts About an Amazing Investment… Call Them
  Pick up the phone and speak to your real-life friend. It’s a simple test that can save you thousands.
• Never Act Out of Emotion or Urgency
  Real investment professionals don’t require split-second decisions. Especially when it’s unsolicited.
• Be Wary of Private Messages on Social Media
  Real investment professionals don’t cold-message strangers.
• Stick to What You Understand
  If you can’t explain the investment, don’t invest in it.
• Consult a Trusted Professional Before Moving Money
  Especially large sums, or anything involving cryptocurrency.

A Life Lesson for All: Be Content with Enough

Here’s the part that sticks with me: that older couple in the WSJ article had $5 million in savings. They’d worked hard their whole lives. Why risk it all for a little more?

I think it reflects something many of us wrestle with—the fear of missing out (FOMO). Social media constantly shows us people who seem to have more, earn more, or invest smarter. It makes us feel like we’re falling behind.

But here’s the truth: the greatest financial skill in today’s world might be contentment.

You’ve worked hard to build what you have. Protect it. Be wise. And don’t let the illusion of easy money tempt you into risking what you’ve earned. You’ve already been blessed with what matters most—security, relationships, and peace of mind. No investment can match that!

Final Thought

If something seems too good to be true—it probably is. But if you’re ever unsure, don’t be embarrassed to ask for help. Sometimes a five-minute phone call to a real friend or investment professional could save you from losing everything.

I hope you never need this advice—but I’d rather you have it than learn the hard way.

Remember… true wealth often lies in appreciating what you already have.

(By the way… I’d encourage you to share this message with friends and loved ones. These scams are far more common than most people realize—partly because those who fall victim often feel too ashamed and embarrassed to speak up. Silence only helps the scammers!! A simple conversation might save someone you care about from a devastating loss.)

Please “like us” or “follow us”… it helps for us to spread the word !!

This article is provided for informational purposes only. It is always best to counsel with your financial advisor or your tax professional to ensure that you make the best decision for your circumstances.