Last year, over $3.4 million was reported lost to ‘pig butchering scams’ in Saskatchewan. As Fraud Prevention Month begins, the Financial and Consumer Affairs Authority of Saskatchewan is highlighting this type of investment fraud. The FCAA of Saskatchewan describes the scam as a long-term investment fraud where scammers build trust with the victims over time, often through social media or messaging apps.
They may try to befriend their victim, develop an online romance or pretend to be a legitimate investment advisory.
Eventually, the scammer recommends putting money into an investment opportunity promising high returns. At first there will be some false gains to encourage more investment. Then, once a significant amount has been invested or the victim asks for a withdrawal, the scammer disappears with the money.
The FCAA says scammers are often part of organized crime rings operating outside of Canada. They are called ‘pig butchering scams’ because it’s similar to fattening a pig before slaughter.
Red Flags to Watch Out For:
- Unsolicited messages from strangers.
- Unsolicited investment offers.
- Too-good-to-be-true returns.
- Pressure to act quickly.
- Requests for payments or personal information.
- Requests for large sums of money to unlock “earnings”.
- Requests to keep the investment secret.
- Requests to access your computer.
- Pressure you to borrow money in order to invest.
How to Protect Yourself:
- Be cautious when approached by strangers online.
- Always verify that the investment person or company offering the investment is registered in Saskatchewan. To check registration, visit The Canadian Securities Administrators’ National Registration Search at aretheyregistered.ca.
- Never send money to someone unless you have verified their identity.
- Know exactly what you are investing in and make sure you understand how the investment, product, or service works.
- Get a second opinion and seek professional advice about the investment.
- Do not allow unknown or unverified individuals to remotely access your computer.
If you think you have been targeted or are the victim of a pig butchering scam, contact the FCAA’s Securities Division at 306-787-5936.
