Scams: Phishing and Pig Butchering
Never has it been easier for scammers to take advantage of us. We discussed this topic before (Don’t Become a Victim of Fraud) but want to spend a bit more time on Phishing and Pig Butchering, two of the most common forms of financial fraud.
Phishing involves using fake emails to lure unsuspecting victims. These emails seem to come from a legitimate source (PayPal, Amazon, Microsoft, etc.). They raise fears by claiming that your account has been compromised, and that your “immediate attention” is required. They scare you into logging into your account to “prevent further issues”. They may even ask for your personal information (SS#, credit card, personal information, etc.). The reality is that they use the information you provide to steal your identity, steal funds, or install malicious software on your computer. The best way to prevent phishing is to:
- Never provide personal information in response to an unsolicited request
- Contact the institution directly to confirm (i.e., PayPal, Amazon, Microsoft)
- Never provide your password over the phone or online request
- Review all your financial statements regularly to ensure all your credit card charges and bank withdrawals are correct
Pig Butchering involves scammers gaining the trust of victims through text or email, oftentimes via a fictitious romantic relationship. Victims are duped into making investments into fake cryptocurrency or other fake “investment” related projects. To protect yourself from Pig Butchering:
- Be cautious of unsolicited investment advice offered via phone, text message, email, social media, or even in person
- Always question the legitimacy of projects that sound too good to be true
- Never share personal financial information with individuals you haven’t met in person
- Avoid projects that require you to recruit other people in order to get paid (pyramid/Ponzi)
- Always perform due diligence on ANY proposed investment strategy
Be vigilant and don’t become a victim!
