The New Jersey Securities Bureau has ordered three website operators to stop luring victims looking for romance into fraudulent cryptocurrency investment schemes.
The three cease and desist companies are Meta Capitals Limited, Cresttrademining Limited and Forex Market Trade, according to a Feb. 3 press release from New Jersey Attorney General Matthew Platkin.
The three companies claimed to be cryptocurrency trading platforms, where they would entice victims to copy the trades of “expert traders” in order to make huge profits.
These companies are bringing victims by reaching out to love-seekers on dating apps like Tinder through so-called “killer pig” scams.
Online fraudsters are taking advantage of investors in a new scam known as “killer pigs” where victims are “fatted” before the scammers take all they can. With our current stop and cease orders, we protect NJ from cryptocurrency scams. https://t.co/Q6xX5l4Ohk
– Attorney General Matt Platkin (@NewJerseyOAG) February 3, 2023
“Hog killing” is a scam where cybercriminals use social media to contact victims, establish a romantic relationship and then lure them into a fraudulent cryptocurrency investment scheme once they have gained their trust.
Platkin said he is working hard to protect New Jersey residents who have been victimized by investment fraud:
“These fraudsters create a sense of connection between themselves and their victims – all to squeeze every penny they can out of these people with the promise of a huge return on their investment.”
“We are working around the clock to protect the victims of these types of scams and to show these scammers our laws still apply in cyber space,” Platkin added.
Acting Director Cari Fais of the Division of Consumer Affairs Bureau also hopes that the enforcement action will make it clear that they will “pursue scammers who prey on people’s trust.”
The crackdown comes as the United States Federal Bureau of Investigation (FBI) reports about 4,300 victims have lost a combined $429 million from pork butcher fraud in 2021. No statistics have been released for 2022.
The head of the Securities Bureau Amy Kopleton suggests that the butcher scam works well for fraudsters because the target audience is already in a position of vulnerability:
“Even the savviest investors can have a hard time spotting fraud when it’s perpetrated by someone with a romantic interest.”
related: Navigating the world of crypto: Tips to avoid scams
The cease and desist companies were also found to be violating New Jersey securities laws by offering and selling unregistered securities, the Bureau said.
In addition, Meta Capitals Limited and Cresttrademining Limited were also found to be unregistered broker-dealers.
The butcher’s scam is not limited to the United States.
A new investigation by the British Bureau of Investigative Journalism on January 29 found that out of 168 forex companies believed to be involved in fraudulent activities, about half of them were related to scams like pork.