Californians warned of ‘pig butchering’ scam from fraud cryptocurrency websites

California consumers were warned Monday about confidence schemes from fraudulent cryptocurrency websites sometimes referred to as “pig butchering” scams.

The typical pig butchering scheme involves a victim receiving a random text or social media message from the scammer, who often attempts to build trust, and then is directed to a fraudulent website to invest money in what appears to be legitimate cryptocurrency.

“As scammers grow increasingly sophisticated and calculated, so must our enforcement,” said Attorney General Rob Bonta. “Scammers can use deception and emotional manipulation to take advantage of people looking for connection.”

The California Department of Justice (DOJ) said the schemes are often carried out by international scammers making them difficult to arrest and prosecute, but that they are mitigating the scammers’ effectiveness by shutting down fake sites.

“In 2024, the California Department of Justice shut down 42 fraudulent websites that scammed innocent victims out of at least $6.5 million, with an average loss per victim of $146,306,” the Attorney General’s office stated in its news release Monday.

After reviewing hundreds of websites, the DOJ identified their Top 10 Red Flags for consumers to beware of:

1. Impossible Rates of Return.  Fake websites promise to leverage the amount invested and provide a rate of return of several hundred percent per year. 
2. No Contact Information.  Fake websites will often not have a phone number, email, or physical address.  
3. The use of stolen or borrowed images.  Fake websites will steal images of people they claim are their officers, employees, or customers.
4. The use of stolen dialog and written content.  Fake websites will steal written content from legitimate websites to make the fake website appear credible. 
5. Listed address does not exist or is a bad location.  If a fake website lists an address, it is often the address of another legitimate business or a completely fictitious address. 
6. They offer prizes or bonuses.   Fake websites will often offer generous prizes for investing, cash rewards, or overly generous referral rewards.  
7. Inconsistent phone numbers and addresses.  If a phone number and address is listed, the phone number is often not in the same geographic location as the address provided. 
8. The website has not been recently updated.  The scam websites, once created, are not routinely updated with new content as one would expect from a legitimate website.
9. Bad Grammar and Translation.  While scammers are becoming more sophisticated, fake websites will often have grammar that is inconsistent with a native speaker.  
10. Not on industry listings of exchanges. Legitimate exchanges tend to be listed and ranked as to their volume on crypto-industry websites such as CoinMarketCap.com.  

“We urge all Californians to exercise caution with unknown platforms, verify website domains to avoid fraudulent imitations, and stay wary of crypto recovery scam sites,” Department of Financial Protection and Innovation (DFPI) Commissioner KC Mohseni said. “Staying informed and reporting scams to the DFPI strengthens the Crypto Scam Tracker, making it an even more effective tool in protecting consumers.”

Anyone who believes they are a victim was asked to end all communication with the other party and contact their local law enforcement agency.

Reports should also be made to the California DOJ at oag.ca.gov/report, The Department of Financial Protection and Innovation at dfpi.ca.gov/submit-a-complaint and the FBI’s Internet Crime Complaint Center (IC3).