BIRMINGHAM, Ala. (WIAT) — The Alabama Securities Commission has issued a cease-and-desist order against two entities after an investor reported losing over $40,000 in what the agency referred to as a “pig butchering scam.”
The cease and desist orders were issued to WAP.PBPB.VIP and TAO TAO “for offering unregistered securities and acting as an unregistered investment adviser.”
The ASC said in a press release that “pig butchering scam” refers to a situation where fraudsters attempt to convince unwitting victims into investing in illegitimate cryptocurrency opportunities through the use of deceptive tactics, including using “stock photos of an attractive person for their profile.”
“The pig butchering scam is just as dreadful as it sounds,” the ASC press release said. “Only in this scam, an unsuspecting person’s hard-earned cash is on the chopping block. Con artists will build a relationship with the victims, by peppering them with extremely polished lies, in order to execute the scam that leaves victims with nothing.”
The state agency encourages investors to “thoroughly research any investment opportunity.” Any individual can call the ASC at 1-800-222-1253 “and ask for the registration department to check out persons offering investment opportunities, investment advice for a fee and any products they offer,” the agency said.
The agency also provides free investor education and fraud prevention materials at www.asc.alabama.gov
