A 79-year-old Air Force veteran lost $25,000 in a cryptocurrency scam that started with a single message on Telegram. His fraudulent investment platform showed a balance of $62,000 in fake ‘profits’ he’ll never see. He’s not alone, and your loved ones could be next.

The Call I Never Wanted to Take

Today, I received an urgent call from Mr. E (name changed to protect his privacy), a 79-year-old Air Force veteran who believed he was about to complete a cryptocurrency investment with the help of his “friend” at JP Morgan Chase.

What I uncovered was heartbreaking: Mr. E had fallen victim to one of the most sophisticated and cruel scams targeting seniors today.

By the time we met, his initial $25,000 investment had supposedly grown to show a balance of $62,000 on the fraudulent platform – money he will likely never see again.

The FBI reports that Americans lost over $3.9 billion to cryptocurrency investment fraud alone in 2023. Seniors over 60 are among the hardest hit, losing an average of $32,000 per victim. 🔗

https://www.fbi.gov/news/stories/operation-level-up-how-the-fbi-is-saving-victims-from-cryptocurrency-investment-fraud

How the “Pig Butchering” Scam Works

This devastating scheme has earned a disturbing name in law enforcement circles: “pig butchering.” Criminals “fatten up” victims with attention, friendship, or social connection before “slaughtering” them financially.

Here’s the terrifying pattern I’ve seen unfold:

Over steaming cups of coffee at our local Coffee Cup, Mr. E shared how he was drawn in:
“She called me instead of her friend by mistake, and we just picked up on the conversation and hit it off…“

The “accidental” connection happened on Telegram, not by phone – red flag number one. Soon, his new “friend” was sharing photos and stories about her job at JP Morgan and her friend at the Federal Reserve.

The scammer gained his trust over weeks before suggesting an investment opportunity with “guaranteed returns.” Mr. E made an initial investment of $25,000 in cryptocurrency to the platform, which quickly showed a growing balance reaching $62,000 – a classic tactic to encourage even more investment.

When we examined the website together at our corner table in the Coffee Cup, the pattern became clear: The platform showed impressive “gains” but had no functioning withdrawal mechanism.

“I was afraid of that,” Mr. E admitted when I explained he’d been scammed.”One of my friends’ entire conversation just completely vanished.“

• Verify independently: Research any investment platform through Google searches and the SEC’s website
• Reverse image search: Check if “their” photos appear elsewhere online
• Never invest based on advice from someone you’ve only met online
• Be skeptical of “guaranteed returns” – legitimate investments carry risk
• Talk to trusted family members before making any investment decisions
• Use established cryptocurrency exchanges with long histories if investing in crypto

For Family Members:

• Have the conversation now: Discuss these scams with elderly relatives before they’re targeted
• Watch for unusual financial activity or secretive behavior
• Monitor for new “friends” your loved one mentions but never introduces to family
• Help set up proper security on phones and computers
• Create a “second opinion” rule for any financial decisions over a certain amount

What To Do If You’ve Been Scammed

If you or a loved one has fallen victim to a cryptocurrency scam, take these steps immediately:

1. Stop all communication with the suspected scammer
2. Document everything: Save all messages, screenshots, and details about the scam
3. Report to the FBI through their Internet Crime Complaint Center at www.ic3.gov
4. File a report with local police
5. Contact the FTC at ReportFraud.ftc.gov
6. Alert your financial institutions if you shared banking information

Resources for Victims

• FBI Internet Crime Complaint Center: www.ic3.gov
• AARP Fraud Watch Network: 1-877-908-3360
• FTC Fraud Reporting: ReportFraud.ftc.gov
• Senior Medicare Patrol: 1-877-808-2468
• Veterans Crisis Line: 1-800-273-8255 (press 1)

The Reality of Recovery

I wish I could tell Mr. E that his money would be returned. The truth is more difficult: cryptocurrency transactions are largely irreversible, and perpetrators often operate from overseas jurisdictions beyond U.S. law enforcement reach.

However, reporting these crimes is crucial. The FBI’s recently launched “Operation Level Up” initiative actively identifies and contacts potential victims of cryptocurrency fraud before they lose more money. Your report could help prevent others from suffering the same fate.

A Final Warning

These scammers are professionals. They’re patient, sophisticated, and have refined their techniques to bypass our natural skepticism. They prey on human connection, trust, and the desire for financial security.

No one—regardless of age, education, or background—is immune to these tactics. The best protection is awareness and a commitment to verify before trusting.

If you know someone who might be vulnerable to these scams,
please share this article. It might save them from financial devastation.

Remember: It’s Not About Cryptocurrency

While this particular scam used cryptocurrency as the vehicle, the same fraud occurs with wire transfers, gift cards, and traditional banking. Cryptocurrency itself isn’t the problem — scammers simply leverage whatever payment method offers them the greatest chance of avoiding detection.

The real danger lies in the emotional manipulation and exploitation of trust. Tactics that remain consistent regardless of how the money changes hands.

Have you or someone you know encountered a cryptocurrency scam?
Share your experience in the comments on the socials this to help others recognize the warning signs.

For a free consultation about crypto security or to report suspected fraud, contact our office at 918.777.3700