Investment scams on the rise, ‘pig butchering’ con combines crypto offers and love bombing

A major bank is warning customers to beware of increasingly common investment scams, just as a hybrid love and crypto con called “pig butchering” joins the global array of dodgy schemes.

Westpac told online customers many investment scams started with cold calls, online ads or messages on social media.

“Scam websites can also show up when you search for investment opportunities online,” Westpac said.

“This will lead to someone contacting you claiming to be a broker or account manager who’s eager to help you invest.”

But extortion could follow when a person tried withdrawing that “investment” and was told to make an extra payment to access funds.

“These scams can result in huge financial loss and in many cases the funds are unrecoverable,” Westpac added.

The bank warning came a few days after the Herald reported on a real estate agent tricked into wiring $100,000 as part of a sophisticated investment scam.

Westpac told Kiwi customers to watch out for cryptocurrency scams.

A few days ago, Westpac in Australia banned customers from transferring funds to cryptocurrency exchange Binance.

The bank in Australia said new data showed investment scams accounted for about half of all scam losses and a third of all scam payments are transferred directly to a cryptocurrency exchange.

Last month interest.co.nz reported Binance NZ had been unable to find a local bank prepared to bank its business.

Binance described itself as the world’s leading blockchain ecosystem, with the largest digital asset exchange.

The company told Australian media it was working hard to find an alternative provider to offer Australian Dollar deposits and withdrawals.

Meanwhile, a love scam with a crypto twist has sparked warnings overseas.

In the scam known as pig butchering, scammers initiated contact with potential victims through social media, dating apps or texts.

TechTarget said some scammers were patient - waiting weeks or months and making frequent contact to win people over.

“After gaining trust, the scammer then encourages the victim to invest in cryptocurrency trading,” TechTarget added.

The scammer directed victims to a cryptocurrency app or website, even offering to trade alongside the victim.

But the scammers controlled the platforms.

“Pig butchering scams may move slowly to gain trust, but some try to tempt the victim with promises of elaborate gifts or expensive vacations,” TechTarget added.

UK consumer group Which? said pig butchering was one of the four most convincing scams this year.

“The analogy refers to the process of gaining the victim’s trust or ‘fattening up’ a pig before stealing crypto or funds,” identity-proofing company IDNow said.

CNBC reported most pig butchering scams originated in Asia and involved charlatans promising love and wealth.