Which term names an investment scam that exploits victims' trust before financial loss?

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

The main idea here is a trust-based social-engineering investment scam. In a pig butchering scheme, the perpetrator builds a relationship—often through chat apps or dating apps—so the victim trusts them. They present themselves as a supportive guide or partner and gradually push the victim toward investing in fake opportunities, usually promising high returns with little risk. After the victim transfers money, the scammer disappears with the funds. The name comes from the metaphor of “fattening up” the target with kindness and attention before the “slaughter” of funds.

This is the best answer because it precisely captures how the scam operates—long-term grooming to exploit trust before financial loss. The other option isn’t a standard name for this type of fraud, and the remaining choices refer to different concepts (a regulatory advisory or a different kind of disruption or scam).