ChatGPT helps uncover a $1 million “pig butchering” crypto scam

A widow in San Jose thought she had found a new romantic relationship online, but ended up losing nearly $1 million in a crypto pig-butchering scam (pig-butchering) — only realizing the truth after asking ChatGPT whether her investment made sense.

According to ABC7 News, her entire retirement savings were wiped out, putting her at risk of losing her home.

The woman, named Margaret Loke, met a man claiming to be “Ed” on Facebook in May last year. The conversation quickly moved to WhatsApp, where “Ed,” claiming to be a wealthy businessman, sent loving messages every day and encouraged her to open up.

From Online Romance to Investment Trap

The relationship grew deeper, and the daily check-ins never stopped.

“He was very kind to me, greeted me every morning,” Loke told ABC7. “Every day he would text ‘good morning,’ saying he liked me.”

Then the conversation shifted to crypto investments. Even though Loke had no trading experience, “Ed” guided her to transfer money into an online account he controlled.

“Ed” also sent her screenshots of an app showing that she was “making big profits in seconds”—a typical tactic in pig-butchering scams, using fake results to convince victims their money is growing.

Pig-butchering is a type of scam where the perpetrator builds a relationship over weeks or months, then gradually lures the victim into fake investment platforms to steal their entire assets.

According to Meta, this year alone they have deleted more than 6.8 million WhatsApp accounts linked to criminal organizations in Southeast Asia (mainly Cambodia, Myanmar, and the Philippines), groups specializing in targeting users to steal crypto through romance and investment schemes.

Nearly $1 Million Transferred Straight to Scammers

According to Loke, she started with a $15,000 transfer. Later, the amount rose to over $490,000 withdrawn from her IRA retirement account.

Eventually, she borrowed another $300,000 by mortgaging her house and continued transferring—altogether, nearly $1 million went into the scammer’s hands.

ChatGPT Exposes the Scam

When her “crypto account” was suddenly “frozen,” “Ed” demanded she send another $1 million to “unlock” it. Panicked, Loke asked OpenAI’s ChatGPT to describe her situation.

“ChatGPT told me: No, this is a scam. You should go to the police,” she said.

After receiving the warning, she confronted “Ed” and then reported to the police.

Investigators confirmed she had sent money to a bank in Malaysia, where it was quickly withdrawn.

“Why was I so stupid? I let him scam me!” Loke said. “I’m really devastated.”

Scams on the Rise and Money Recovery Is Unlikely

Loke’s case further highlights the growing trend of victims using ChatGPT to check suspicious transactions.

Last week, an IT expert in Delhi said he created a website to track down the location and image of a scammer after ChatGPT issued a warning.

According to the FBI, older Americans lost $9.3 billion to online scams in 2024. Most of these activities originate from Europe or criminal compounds in Southeast Asia.

The US Treasury Department recently sanctioned 19 entities in Myanmar and Cambodia linked to these rings.

Agencies like the FTC and SEC warn that any form of “crypto advising” that starts from an online relationship is a classic scam red flag.

Loke’s case fits this pattern exactly, with increasing pressure for her to send more money.

Federal regulators warn that recovering money from pig-butchering groups operating overseas is nearly impossible, leaving victims with very little hope of recouping their losses.

Wang Jian