Millions of Americans are falling prey to a new breed of financial fraud. As reported by the Wall Street Journal, the devastating scam known as “pig butchering” is leaving families bankrupt and banks under pressure to do more.
What is Pig Butchering?
“Pig butchering” refers to an elaborate scam where criminals, often operating from Southeast Asia and West Africa, build fake relationships with victims over time, earning their trust before luring them into fake investment schemes. The term comes from the idea of “fattening the pig” before slaughter—scammers gain trust, build rapport, and then go in for the kill.
Victims are groomed through text messages, dating apps, and social media. The scams often involve fake cryptocurrency investments and can stretch for months before the financial hit lands. Unlike traditional bank fraud, victims are convinced to authorize the transfers, making it far more difficult for banks to reverse or cover the losses.
A Real-Life Tragedy
Craig and Anamarie Hurt, an elderly couple from Tulsa, Oklahoma, are among the many Americans caught in the trap. For decades, Craig handled their finances well. But one day, he walked into his bank and began transferring massive sums to what he thought was a promising crypto opportunity. Over a year, the couple lost over $5 million, including their retirement savings, his mother’s trust fund, and a $350,000 home equity loan.
Anamarie sued Arvest Bank for allowing the transfers without alerting her, even though her name was on the joint account. According to the lawsuit, bank employees assisted Craig in sending up to $300,000 at a time, despite red flags like suspicious recipient names and rapid liquidation of assets.
It didn’t stop there. The scammers began threatening Anamarie’s life, sending her stolen intimate photos and texts like, “I’ll gun you and your f—ing wife down instantly.” They tracked her whereabouts and blackmailed her, even while she was at the local senior center.
Who’s to Blame?
Anamarie’s anger eventually turned from her husband to the institutions that, in her view, failed to protect them. She’s not alone. Lawsuits have been filed across the country against banks including JPMorgan Chase and Wells Fargo. The argument: these financial institutions should have caught the warning signs and intervened.
Banks argue they are already overwhelmed handling traditional fraud, terrorism financing, and money laundering. Legally, they’re not required to cover losses when a customer is tricked into authorizing the transaction themselves.
Anamarie’s case is now in arbitration, but like many others, it may be settled privately – avoiding legal precedents that could pressure banks to take broader responsibility.
Why Are Banks Struggling to Stop It?
Federal laws protecting fraud victims were created decades ago, long before pig butchering scams existed. Those laws focus on unauthorized transactions, not cases where victims are manipulated into sending their money away willingly.
Some banks, like Bank of Oklahoma, closed Craig’s accounts when they noticed suspicious activity. But that didn’t stop Craig from opening new accounts elsewhere, including Arvest. The scammers were relentless, even using Craig’s phone to take compromising photos of Anamarie and leveraging his cognitive decline – later diagnosed as vascular dementia – to keep control over him.
States like Alabama have implemented “safe harbor” laws allowing banks to delay suspicious transactions and report them without fear of liability. These laws have helped prevent millions in losses. More than 20 states now have such rules for banks, and over 40 have them for investment advisers. But Oklahoma, where the Hurts live, has no such protection for banks.
What You Should Watch For
Scammers are persuasive. They often present themselves as romantic partners or seasoned investors. Here are common warning signs:
- An online contact talks about high-return investments, especially in cryptocurrency.
- You’re urged to send wire transfers or convert funds into crypto or gift cards.
- The contact becomes emotionally manipulative or threatens you if you question them.
- They try to isolate you from friends or family who express concern.
How to Protect Yourself
- Be Skeptical: Don’t trust financial advice from someone you met online. Even if it feels real, verify everything through a known financial institution or adviser.
- Use Two-Person Oversight: For large transfers, involve a spouse, child, or legal adviser—especially for elderly individuals.
- Ask Your Bank About Alerts: Some institutions allow customers to set up notification rules or joint alerts on accounts.
- Know the Laws in Your State: Some states let banks delay suspicious activity and notify family members—others don’t.
- Get a Power of Attorney Early: If a loved one is beginning to show signs of cognitive decline, take legal steps before it’s too late.
- Report Suspicious Activity: Contact your state’s Adult Protective Services, local police, and financial institutions immediately if you suspect a scam.
What Needs to Change
Consumer advocates and victims are pushing for broader legal reforms. Some have proposed federal laws requiring banks to hold questionable transactions and report them. A 2023 bill in Congress sought to close the loophole in fraud protections but faced pushback from the financial industry.
California tried to pass a law mandating emergency contacts and hold requirements for seniors, but it was vetoed by Gov. Gavin Newsom after opposition from the California Bankers Association.
Without more aggressive protections, many fear the scams will continue to spread unchecked. As Amanda Senn from Alabama’s securities regulator put it, “It’s getting increasingly harder for everyone.”
Craig Hurt still believes he can make it all back with “just one more investment.” Anamarie sleeps with her phone and laptop under her pillow to keep him from reaching the scammers. The damage has been financial, emotional, and deeply personal.
Pig butchering is not just a crime – it’s a growing epidemic. Until laws catch up, vigilance is the only real protection most Americans have.
FAM Editor: This may be a case where AI can help, investigating “opportunities” like this, and calling out possible scams to a backup advisor. But then, what if the AI is taken over by scammers???
