When most people think of retirement planning, they picture investment strategies, Social Security timing, or tax-efficient withdrawals. But in today’s world, cybersecurity and scam awareness have become just as essential to protecting your financial future.

One of the fastest-growing threats to retirees right now is a type of fraud known as "pig butchering."” The name is graphic, but the strategy is even more disturbing: scammers spend weeks or even months building a relationship with their victims before convincing them to move money into fake investment platforms—often linked to cryptocurrency.

What Is Pig Butchering?

Pig butchering scams blend romance fraud, social engineering, and financial deception. The goal? Fatten up the "pig" (the victim) emotionally and financially, before "slaughtering" them with a fake investment scheme that drains their retirement savings.

• Scammers often make contact via text, dating apps, or social media using fake profiles.
• They maintain daily communication, express care, and build trust.
• Eventually, they introduce an "investment opportunity" that looks legitimate but is completely fabricated.
• Victims are guided step-by-step to transfer funds from real exchanges into fake platforms—often using money from retirement accounts.

Why It Matters for Retirees

Many victims are retirees or older adults who:

• Have larger account balances from IRAs or 401(k)s
• May be less familiar with digital investment tools
• Are more trusting or looking for connection

And the impact isn’t just emotional. If retirement accounts are used to fund the scam, victims not only lose their savings—they can face unexpected taxes, early withdrawal penalties, and no ability to deduct the loss (unless it occurred during a federally declared disaster).

How to Protect Yourself

You don’t need to be tech-savvy to stay safe—just skeptical. Here are key tips to guard your finances:

• Be cautious of unsolicited messages from unknown numbers or social accounts.
• Never invest based on advice from someone you’ve only met online.
• Talk to your advisor before making any large financial moves or investing in crypto platforms.
• Avoid platforms that promise high returns with low risk. If it sounds too good to be true, it likely is.
• Keep retirement funds in qualified accounts. Once withdrawn, the protection is gone.

Final Thoughts

As scammers get more sophisticated, it’s crucial to approach online interactions with caution—especially when they involve your hard-earned savings. If you ever feel uncertain about a financial opportunity or conversation, reach out to your advisor. A second opinion might just save your retirement

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