How to Avoid Crypto Pig Butchering and EBT Text Scams

Fraudsters are increasingly targeting personal savings through sophisticated "pig butchering" crypto schemes and fake EBT benefit alerts, two distinct but high-stakes threats that resulted in over 201,000 reports to the FBI’s Internet Crime Complaint Center in 2025 [1]. These scams, which collectively cost victims $7.7 billion last year, rely on psychological manipulation and urgency to drain accounts before victims realize the fraud [1, 2].

Anatomy of a digital asset scam

"Pig butchering" fraud typically begins with an unsolicited message on social media or encrypted apps like WhatsApp or Telegram [1]. Scammers spend weeks or months building a rapport—a process known as "love bombing"—before introducing a fake cryptocurrency or foreign exchange investment platform [1]. These operations often pressure victims to empty retirement accounts or take out loans, promising high, guaranteed returns that do not exist [1].

Experts warn that the sophistication of these scams makes them difficult to identify while they are occurring [1]. Warning signs include requests to keep investments secret from family, demands for payments via Bitcoin ATMs, or the sudden refusal to allow withdrawals unless additional "taxes" or "fees" are paid [1]. Because these transactions are often irreversible, authorities emphasize that the most effective defense is to stop communication immediately if an investment opportunity feels too good to be true [1].

Phishing for benefit data

While crypto scams target investment capital, EBT phishing campaigns focus on immediate liquidity by mimicking government benefit alerts [2]. Fraudsters send bulk texts claiming an EBT card is suspended, directing victims to call a toll-free 877 number [2]. These numbers, which can appear credible due to their area code, connect victims to fake automated menus designed to harvest card numbers, PINs, and Social Security details [2].

State agencies, including the California Department of Social Services, have confirmed that they do not use text messages or calls to request sensitive card data or PINs [2]. The only legitimate way to verify an account issue is to call the customer-service number printed directly on the back of the physical EBT card [2].

What to watch

• Communication shifts: Monitor for any contact that attempts to move a conversation from a public platform to an encrypted app like Telegram or WhatsApp [1].
• Verification sources: Watch for messages directing you to call a number not explicitly printed on your official government-issued card or bank statement [2].
• Behavioral changes: Look for signs of financial secrecy or sudden, unexplained interest in cryptocurrency investments among older family members, who are disproportionately targeted by these campaigns [1].

The rise of AI-generated profiles and automated phishing menus has lowered the barrier for entry for scammers, making independent verification of any financial request the primary defense for individual account holders. Law enforcement agencies continue to urge victims to report incidents to the IC3 or local authorities, even if funds are not recovered, to help map the scope of these evolving threats [1].