New Mexico Securities Division alerting seniors about ‘pig butchering’ financial scam

The New Mexico Securities Division of the Regulation and Licensing Department is warning consumers against “pig butchering” scams and how to avoid falling victim this holiday season.

Victims of pig butchering may receive a text message or voicemail from a wrong number that comes from an innocent-sounding person about a meeting or other social plan they may have. When the potential victim responds, the perpetrator may continue the conversation by being friendly. Over a longer period than other scams, a relationship is built with the conversation eventually turning toward cryptocurrency and investing. The perpetrator “fattens up” the victim by building a relationship and eventually, after what can equate to months, the victim is “butchered” for much, if not all, of their life savings.

This scam is a particular threat to seniors and those with fewer social contacts. By the year 2030, 32.5% of New Mexico’s population will be age 60 or older. The state will also rank third in the nation in percentage of population for that age group by 2030.

“As New Mexico’s senior population increases, so will financial abuse incidents,” said Benjamin Schrope, New Mexico Securities Division acting director. “All investors should be aware of pig butchering and how the scam steals your money over a long period of time. We are very concerned about the impact this scam has and want individuals to know what to look for and how to prevent falling victim.”

Seniors and other vulnerable populations should be cautious of these warning signs of a pig butchering scam:

• Random, non-initiated communication from an unknown individual attempting to build a relationship
• Unsolicited investment offers received by email, social media or telephone
• Investment opportunities with too-good-to-be-true returns
• Displays of urgency making you think this is a deal you don’t want to miss
• Fraudulent ads posted on the internet or social media
• Request to transfer your legitimate crypto investment to an alternate crypto address that is under the control of criminals