HUNTSVILLE, Ala. – A wave of cryptocurrency investment scams is sweeping across Alabama, with more than a million dollars lost in just the past three weeks, according to the Alabama Securities Commission. Officials are raising alarms over a sophisticated scheme known as “pig butchering,” in which victims are manipulated into trusting fraudsters who ultimately direct them to fake investment platforms.
“This is a very real and fast-growing threat,” said Amanda Senn, Director of the Alabama Securities Commission. “We’re seeing a disturbing rise in cases, and unfortunately, once the money is sent, it’s almost impossible to get back.”
A Scam Built on Trust and Deceit
The scam typically begins with a text message or a friendly interaction on social media. Over time, the fraudster builds trust, often pretending to be a successful investor in cryptocurrency.
“They’ll say things like, ‘Hey, I’ve been making lots of money in cryptocurrency. Oh, you’re not familiar with it? Let me help you,’” explained Senn. “Then they direct the victim to a fake crypto website that looks completely legitimate. These websites mirror actual financial platforms. You can log in, view fake returns, and even download statements.”
Four victims in North Alabama have already lost a combined $1 million, and authorities believe that figure is likely an underestimation of the scam’s full reach. The Alabama Securities Commission says they’ve logged over 50 recent complaints tied to crypto fraud, with reports coming in almost daily.
Once the Money’s Gone, So Is the Scammer
The hallmark of this scam is its emotionally manipulative and highly personalised nature. After building a connection, the scammer asks for an initial investment, promising strong returns. Victims often see fake profits generated in their accounts, which encourages them to invest more.
But then comes the final act: the scammer asks for a large deposit, often under the pretence of unlocking even greater gains or paying taxes. Once the funds are transferred, communication is abruptly cut off.
Senn emphasised how professional and convincing these operations can be. “Some of these messages and websites are so well-crafted, it’s hard to tell what’s true and what’s not,” she said. “Fraudsters are now initiating contact via text, which feels more personal and less suspicious to many people.”
Social Media: A Playground for Scammers
Senn warned that scammers are increasingly using social media and dating apps to target victims, creating detailed profiles to match their targets’ interests and backgrounds.
“Fraudsters can easily put together a victim profile and target you specifically with the amount of information that we make available about ourselves online,” she said. “It’s a numbers game for them. They sit behind a computer or telephone all day long to build a relationship with you and steal your money.”
The approach is often slow and calculated, with scammers sometimes taking weeks or months to gain a victim’s trust before making their move. Just this week, the Alabama Securities Commission received a new complaint from someone who had been defrauded by a person they met through a dating app.
BBB: The Problem Is Likely Bigger Than Reported
Karen Reeves, with the Better Business Bureau of North Alabama, echoed Senn’s concerns, noting that many victims are too embarrassed to come forward or may not know where to report fraud. “That number, 50 victims in North Alabama alone, is probably low,” she said. “People are being tricked every day, and these fraudsters are getting better at what they do.”
Staying Safe in the Crypto Era
The Alabama Securities Commission is urging residents to be vigilant and avoid sending money to anyone they’ve only interacted with online or over text. “If you’re talking with someone that you don’t know, and they’re asking for money… major red flag,” Senn warned.
Authorities encourage people to report suspicious activity immediately and to double-check any investment opportunity with a trusted financial adviser or through official state channels.
With crypto scams becoming increasingly complex and emotionally manipulative, Alabama officials stress that public awareness is the first line of defence. As Senn put it, “Trust your instincts. If something feels off, it probably is.”
