“Pig-butchering scams (also known as romance baiting or financial grooming) have quickly become one of the most destructive forms of online financial fraud, impacting investors across the country, including seniors and other vulnerable populations. Although these schemes originate outside the traditional financial system and often involve cryptocurrency, the flow of victim funds commonly passes through U.S. brokerage firms, placing FINRA-registered broker-dealers squarely within the chain of events. This CLE will explore how perpetrators groom and manipulate victims, how fraudulent transactions are carried out through brokerage accounts, and the regulatory duties imposed on firms under FINRA rules, Regulation Best Interest, and AML/KYC obligations. Participants will gain a grounded and practical understanding of scam mechanics, compliance expectations, and emerging theories of liability in FINRA arbitration and related litigation. The program will also provide guidance on recognizing red flags, counseling affected clients, and pursuing recovery strategies when brokerage firms fail to appropriately detect or prevent suspicious activity.”