With the province ringing in Fraud Prevention Month at the beginning of March, they're highlighting a type of investment fraud known as "pig butchering scams".
They report that in 2024, over $3.4 million was lost due to these scams.
The province defines a "pig butchering" scam as a type of long-term investment fraud where scammers build trust with the victims over time, often through social media or messaging apps. This can include befriending the victim, developing an online romance with them, or pretending to be a legitimate investment advisor.
Eventually the victim will be introduced to an investment opportunity with the scammer promising high returns. Oftentimes this will be accompanied by falsified gains to encourage the victims to participate in the scam. Once the victim has invested heavily and asks for a withdrawal, the scammer disappears.
The scammers are often part of organized crime rings outside of Canada, with the scam being named as they're similar to fattening a pig before slaughter.
The Financial and Consumer Affairs Authority of Saskatchewan (FCAA) lists off some of the red flags people should watch out for.
- Unsolicited messages from strangers.
- Unsolicited investment offers.
- Too-good-to-be-true returns.
- Pressure to act quickly.
- Requests for payments or personal information.
- Requests for large sums of money to unlock "earnings".
- Requests to keep the investment secret.
- Requests to access your computer.
- Pressure you to borrow money in order to invest.
They also listed off ways that people can protect themselves from a scam in the future.
- Be cautious when approached by strangers online.
- Always verify that the investment person or company offering the investment is registered in Saskatchewan. To check registration, visit The Canadian Securities Administrators' National Registration Search at aretheyregistered.ca.
- Never send money to someone unless you have verified their identity.
- Know exactly what you are investing in and make sure you understand how the investment, product, or service works.
- Get a second opinion and seek professional advice about the investment.
- Do not allow unknown or unverified individuals to remotely access your computer.
If a person thinks they have been targeted or are the victim of a pig butchering scam, the FCAA asks them to contact their Securities Division at 306-787-5936.