Study for the Certified Bank Secrecy Act Professional Test. Use flashcards and multiple-choice questions with hints and explanations. Get exam ready!

Multiple Choice

Which term describes an investment scam exploiting victims' trust before financial loss?

This describes a grooming-based investment scam. A scammer builds trust online—often posing as a friend, mentor, or romantic contact—and guides the victim toward investing in fake opportunities, such as crypto or high-yield schemes. They show supposed profits to keep the victim engaged, gradually pressuring them to invest more until a large withdrawal drains the funds and the scam collapses. The phrase “pig butchering” captures this process: the victim is “fattened up” with trust and small wins, then financial loss follows. The shorthand term specifically names this deceptive pattern of exploitation before money is stolen, rather than other terms that refer to privacy or security concepts.

This describes a grooming-based investment scam. A scammer builds trust online—often posing as a friend, mentor, or romantic contact—and guides the victim toward investing in fake opportunities, such as crypto or high-yield schemes. They show supposed profits to keep the victim engaged, gradually pressuring them to invest more until a large withdrawal drains the funds and the scam collapses. The phrase “pig butchering” captures this process: the victim is “fattened up” with trust and small wins, then financial loss follows. The shorthand term specifically names this deceptive pattern of exploitation before money is stolen, rather than other terms that refer to privacy or security concepts.