Cryptocurrency “pig butchering” scam alert!

The U.S. Secret Service has advised NAR about a new cryptocurrency scam targeting real estate professionals, some of whom have lost a significant amount of money. Fraudsters pretend to be wealthy all-cash homebuyers and engage an agent to develop a relationship. Through the course of the engagement, the fraudster lies about becoming rich through cryptocurrency and then invites the agent to check out a crypto investment website that looks legitimate with cryptocurrency that seems real. This is a variation of a “pig butchering” scam, where the victim is “fattened up” before taking the bait. The real estate agent makes a small investment, sees a large return, and is allowed to withdraw their profit. The agent then invests more money—even their retirement savings—only to lose it all.

Risk reduction tips: Cryptocurrency scams
1. Never respond to unsolicited texts, social media messages, or emails soliciting an investment.
2. Be cautious when sharing personal information online, as scammers will exploit personal details to build trust.
3. Recognize the red flags: rapidly developing a relationship, making an impression of wealth and investment knowledge, promising fast and high returns, creating urgency to make a quick decision, and declining in-person interactions.
4. Thoroughly research any investment platform, including online corporate records and registration with regulatory bodies such as the Securities and Exchange Commission.
5. Immediately report suspected cryptocurrency fraud by reporting it to www.ic3.gov, and local law enforcement.

Find out more about the scam at https://www.secretservice.gov/investigations/investmentfraud-pigbutchering.