Tag: Safety

June 19, 2024

Pig Butchering: What It Is and How to Protect Yourself

Image of a pig standing near a cell phone
Image of a pig standing near a cell phone

In 2023, the Financial Crimes Enforcement Network (FinCEN)[1]." issued a critical alert about a virtual currency investment scam known as "Pig Butchering." According to most recent estimates, pig butchering schemes cost victims $3.3 billion in 2022, the most recent year that data was available.

What is "Pig Butchering"?

Pig butchering is a type of online investment fraud where scammers create fake personas to trick victims into fraudulent investment schemes by building trust over time. Scammers use various tactics to deceive victims into parting with their money. They establish an emotional connection and gain the trust of their victim over the long term. Unlike other scams that involve smaller, frequent transactions, pig butchering typically aims for a large, single payday that can drain victims' life savings.

Charcteristics of Pig Butchering

  1. Gaining trust: Scams often begin with casual conversations initiated by the scammer, who may pretend to have received the victim's contact details accidentally or through a mutual acquaintance. These initial interactions are designed to build trust and may involve the use of attractive profile images to lure victims.
  2. Introducing the investment: As trust is established, the scammer introduces the victim to a fraudulent investment scheme, promising significant returns in a short period. The scammers use persuasive tactics and counterfeit investment portfolios to convince victims of the scheme's legitimacy.
  3. Collecting money: After convincing the victim to invest, scammers collect funds, often through digital payment platforms or cryptocurrencies, to complicate tracking and tracing of the transactions.
  4. Disappearance of the scammer: Once a substantial amount has been collected, or when victims attempt to withdraw funds, scammers become unreachable, delete their online presence, or create new identities, leaving the victims with no way to recover their funds.

Investors need to be vigilant and conduct thorough due diligence before investing in cryptocurrency or any other investment scheme. Be wary of unsolicited investment offers and approach overly promising investment proposals skeptically. Review these actions to protect yourself:

  1. Be careful who you trust: Fraudsters do their best to create emotional connections with their victims. Think critically before letting your guard down with someone you just met. They use your social media information and anything they can get you to share to manipulate and take advantage of you.
  2. Beware of red flags: Never rush into any investment. Only use well-known and reliable trading platforms, including Cryptocurrency exchanges.
  3. Don’t fall for FOMO: Fraudsters try to get victims to feel the Fear Of Missing Out (FOMO). Be very skeptical if a new acquaintance tries to get you to invest fast so you don’t miss an opportunity. That is often a trick to get you to give them money before your judgment kicks in.
  4. Trust your instincts: Think twice before investing - if it seems too good to be true, it probably is.
  5. Keep your information to yourself: Do not provide details about your financial positions or share sensitive information online or on unverified sites.
  6. Verify Information: Validate individuals you meet online are trustworthy through mutual friends or acquaintances. Verify investment opportunities by conducting independent research and seeking advice from trusted financial professionals to ensure legitimacy.

Be Cautious and Conduct Your Due Diligence

"Pig butchering" continues to pose a significant threat to investors. Don’t make rash financial decisions with too-good-to-be-true promised results with people you meet online. If you suspect you are involved in a cryptocurrency scam or fraudulent activity, immediately report it to authorities and your financial institution. Always be cautious and conduct due diligence when considering investment opportunities.

Learn More. Read ‘Pig Butchering' Scams: What They Are and How to Avoid Them | FINRA.org.

[1] FinCEN is a bureau of the U.S. Department of the Treasury. FinCEN’s mission is to safeguard the financial system from illicit use and combat money laundering and promote national security through the collection, analysis, and dissemination of financial intelligence and strategic use of financial authorities.

November 28, 2022

Protect Yourself from Wire Fraud

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Wire Fraud is on the rise, but it is preventable. Whether you’re managing business or personal accounts,  verification is key to making sure the right person is receiving your money.

Before you initiate a transaction, ask yourself these questions:

  • Is this an entity or person you normally make payments to via wire?
  • Are the payment instructions different than in the past?
  • Have you spoken directly with your payee regarding the change/request? It’s the best way to ensure the change/payment request is valid.

Creating and following a wire verification process is essential to protecting yourself and your business. Do not take shortcuts and fall victim to fraudsters. You can outsmart them by carefully reviewing wire requests and following the process.

Customers cumulatively lost almost $200,000 this month alone by not following a wire fraud verification process. In all cases, the customers did not call back the beneficiary with the phone number on file to verify the wire transaction.

 

We’re all in this together to prevent electronic transaction fraud. We can only win this battle by implementing various layers of internal controls throughout the funds transfer process. If you believe you or your business is a victim of wire or ACH fraud, contact us immediately to halt additional fraudulent transactions. Also, consider reporting the incident to law enforcement, which helps your business and others avoid similar fraud attempts.

Should you have any questions regarding your personal or financial information at the Bank, please do not hesitate to contact a Customer Service Representative at (916) 567-2899 or (800) 564-7144 or by email at [email protected].