Connecticut State Police are warning residents of a growing fraud trend known as “pig butchering.”

State police issued an advisory on Tuesday alerting the public to this type of scam, which often uses a ruse involving a purported investment opportunity or a romantic interest.

“The term ‘pig butchering’ refers to the scammer’s practice of ‘fattening up’ the victim with promises of wealth before ‘slaughtering’ them by stealing their money,” state police wrote in a statement. “It is crucial for the public to be aware of these scams, to be cautious of unsolicited investment advice from online acquaintances and to thoroughly research any investment opportunity before committing funds.”

According to state police, pig butchering, which is known as sha zhu pan in Chinese, usually involves someone contacting a potential victim through dating apps, social media or professional networking platforms. After building trust with the victim over weeks or months, “often feigning romantic interest or establishing a friendly rapport,” the victim is emotionally invested enough for the scammer to introduce them to what is purported to be a lucrative investment opportunity involving cryptocurrency, foreign exchange trading or a new venture, state police said.

The scammer often claims to have insider knowledge of the phony investment opportunity and convinces the victim to invest their personal funds.

“The scammer may direct the victim to a fraudulent trading platform or app, which appears to show impressive returns on their investment,” state police said. “Encouraged by these fake profits, the victim is lured into investing more money. However, when the victim attempts to withdraw their funds, they discover that the platform is a sham and their money is lost.”

According to the FBI’s Internet Crimes Complaint Center, cryptocurrency investment fraud grew more than 53% in 2023 to approximately $4.5 billion. State police noted, however, that a recent study suggests this type of fraud may be far worse, with total losses since 2021 being possibly as high as $75 billion.

Authorities also noted that scammers are often victims of human trafficking who deal with poor living and working conditions.

“This fact does not justify their actions, but serves as a significant reminder of the pervasiveness and reach of these transnational organized crime syndicates,” state police wrote.

State police have provided residents with several things to look for to avoid this type of scam, including being wary of unsolicited contact from individuals who reach out through social media or other apps and to avoid any investment opportunity that seems “too good to be true.” Residents should also be leery of requests for personal information, pressure to invest quickly and “investment opportunities” that either lack transparency or involve unusual payment methods like wire transfers, gift cards or cryptocurrency.

Before investing, state police encourage checking whether a company or individual is registered with regulatory bodies like the Connecticut Department of Banking, Securities and Exchange Commission or the Commodity Futures Trading Commission.

“Unregistered entities are a red flag,” according to state police.

Older residents who have accumulated significant life savings can be particularly vulnerable to pig butchering scams, police noted.

“Scammers often target older individuals, perceiving them as having more disposable income and potentially being less familiar with online investment platforms or current scam tactics,” state police wrote.

A 2021 study by AARP found over 56% of victims were over the age of 50 with a median loss of $3,000.

State police also encourage residents to “carefully scrutinize” the use of third-party cryptocurrency tracing services that require hefty down payments or a percentage of “recovered” assets.

“The companies claim to have the ability to recover stolen cryptocurrency when in fact they have no legal jurisdiction or authority to freeze or seize assets, only law enforcement does through the judicial process,” police wrote.

In 2023, the Cryptocurrency Working Group of the Connecticut State Police successfully recovered nearly $4 million in assets for Connecticut victims, though police noted this is a “small number” relative to the total losses suffered through these types of scams.

Connecticut residents who suspect they may be the target of a fraudulent scam have been encouraged to contact their local police department or state police barracks. Scams specific to those involving cryptocurrency can be reported to CSP.virtualcurrency@ct.gov. State police also encourage reporting these types of crimes to the FBI at IC3.gov.