Sophisticated scammers are targeting individuals across the globe through text messaging, dating apps, social media, and email. While the tactics have been around for some time, the term “pig butchering” has emerged. Understanding how these scams operate and taking preventative measures can help protect against financial loss.
What Is a ‘Pig Butchering’ Scam?
These types of scams originated in China around 2016 or earlier, and proliferated during the COVID-19 pandemic. The name “Pig Butchering” comes from Chinese, “sha zhu pan” or shazhupan, which is literally translated as killing pig game. It is a type of long-term scam and investment fraud in which the victim is gradually lured into making increasing contributions, usually in the form of cryptocurrency, to a fraudulent cryptocurrency scheme.
Similar to Romance Scams, the goal is to develop a relationship with the victim and then “fatten them up” by gradually convincing them to invest in fake investment schemes, usually involving cryptocurrency. They are increasingly common on social apps. A recent study found 12% of Americans using dating apps experienced exposure to this type of fraud. The scammer builds trust with the victim through online communication, subsequently persuading them to invest in a fraudulent cryptocurrency scheme. The “butchering” or “slaughtering” of the victim transpires when their assets or funds are eventually stolen by the scammer.
Pig Butchering scams are often still linked to organized crime groups in Southeast Asia, but they are expanding, because these criminal scam groups are luring unsuspecting job seekers with job postings to then force them to work as online scammers, often under the threat of physical abuse. The scale and sophistication of this threat is unprecedented, with the US Institute of Peace estimating that up to 300,000 people are forced into scamming others around the world by these criminal groups, with about $64 billion dollars stolen worldwide annually as of the end of 2023.
How a Pig Butchering Scam Works
Scam centers employ a range of fraudulent tactics, including cryptocurrency schemes, gambling scams, loan fraud, and government impersonation. Workers typically follow these scripted methods designed to maximize their reach and effectiveness.
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- The Initial Contact: Scammers, often posing as friendly strangers, initiate contact through social media, dating apps, or seemingly accidental messages, like a “wrong number” text.
- Building Trust: Once a target engages, the scammer cultivates a relationship, staying in regular contact to build trust and emotional connection.
- The Investment Hook: The scammer eventually introduces the idea of cryptocurrency trading, claiming insider knowledge or connections that promise high returns. They encourage the victim to download an app or join a platform, which is actually controlled by the scammers.
- Simulated Profits: On the fake platform, victims are made to believe they’re earning profits, and they may even withdraw small amounts to build confidence in the scheme.
- The Big Loss: As trust deepens, victims invest more money. When they try to withdraw larger sums, they are blocked, with the platform demanding fees or taxes. Ultimately, the scammers disappear, taking the money with them.
7 Warning Signs of a Pig Butchering Scam
- Getting a “wrong number” text or message on social media: Many pig butchering scams start “by accident” to lower your guard. Scammers send messages via texts, social media, or dating apps pretending they’re trying to reach someone else, but it is no mistake. The message is trying to lure you into a conversation. The sender often has an attractive profile photo, and even after you tell them that they have the person, they continue the conversation. Do NOT respond to unsolicited messages or engage in conversation. Delete the messages and block the sender.
- A match on a dating site moves quickly: The new online relationship starts very personal and moves forward quickly, sharing intimate details about their lives and expressing their love for you. Romance scammers may even send you tokens of their love, gushing over you and is available to chat via messages, morning or night. They used to avoid talking on camera, but scammers now know how to use AI deepfakes to trick victims. When it comes to online dating, take things slowly until you truly know the person, which should include in-person meetings before taking things further, sending them money, or investing in their recommendations.
- Scammers emotionally manipulate you to build trust: While not romantic, the person will talk a lot about ambitions and goals, and may encourage you to do more with your life. They may casually mention how much money they spend, but their remarks are an attempt to manipulate you. They’ll usually remind you of your struggles and offer solutions, such as cryptocurrency investments. Avoid sharing personal or financial information, but if they start encouraging you to invest in cryptocurrency, that’s a big red flag.
- The person offers to show you how to start trading cryptocurrency: There have been many examples of scammers offering to teach victims how to trade crypto online, promising to send them their money back with the returns. They may even send back some of the money to convince the victim to invest even more, but eventually the scammer disappears with the money. If you aren’t confident enough to use a cryptocurrency platform without the help of an online stranger, you shouldn’t take the risk.
- Someone you meet online suddenly starts talking about crypto and “guaranteed returns”: The person might start talking about the recent rise in cryptocurrency value, and how they have been able to profit from it. They might claim to have some insider knowledge about investment opportunities. Even if you’re disinterested, they continue to bring it up, and if you show interest, they will offer to show you how to buy and transfer cryptocurrency. They might ask for your assistance to secure a “mining certificate,” or they talk about “liquidity mining.” Beware of anyone who encourages you to invest in cryptocurrency and do not share any financial information without verifying the security of the transaction.
- You’re told to visit a specific website or download a certain crypto trading or investing app: Pig butchering scams often use fake crypto trading apps or exchanges to make it look like you’re getting a massive return on your investment. They’ll offer to show you how they’ve made a lot of money and you need to do exactly as they say. You may even be able to withdraw some of your “earnings,” but when you try to withdraw a higher amount of money, “customer service” comes up with various excuses to stop you. Even if it seems real, remember that any website or app can be manipulated. If a platform promises high returns that sound too good to be true, stay away from it. Never join an investment platform suggested by someone whom you’ve only met online. Research all apps and investment accounts before sending any money.
- You’re told you need to pay a big bill or fees to withdraw returns: Pig butchering scammers will try to get as much money out of you as possible before you discover their scam. One way they can get more is by claiming you need to pay bogus fees and taxes to withdraw your earnings. “Customer support” agents may explain that there are fees, which cannot be deducted from the profits. They will concoct other excuses to deny you a withdrawal, such as server downtime and technical issues.
What if you Suspect a Pig Butchering Scam?
- Break off all contact with the scammer. Immediately stop all communications across text, social media, apps, and email. Don’t send any explanation or say goodbye. Do not arouse their suspicions.
- Block and report their account. Scam groups often use multiple accounts to add credibility to the scheme. Make sure to block and report every profile that might be part of the scam. Meta, the parent company of Facebook and Instagram, recently shared they removed over 2 million accounts that were part of pig butchering scams.
- Change all your passwords and login credentials. If you share any account numbers or access codes for your cryptocurrency accounts or online platforms, create new, strong passwords.
- File a complaint with the FBI’s Internet Crime Complaint Center (IC3). Be sure to include specific details and any supporting information, such as screenshots of email, text, and messaging conversations.
- File a police report. Contact your local law enforcement office with full details of the fraud.
- Monitor your accounts for signs of fraud. Keep a close eye on all your bank accounts, credit card statements, and credit reports to spot any unfamiliar transactions.
How to Protect Yourself from Pig Butchering Scams
To avoid becoming a victim of a pig butchering scam, follow these tips:
- Never share personal or financial information with someone you’ve only met online.
- Never send money or cryptocurrency to anyone you haven’t met in person or don’t personally know and trust.
- Never join any investment site, or download an app, at the suggestion of someone you have only met online. Even if it looks and seems real, it could be a fraudulent app that gives the impression that you’re earning profits.
- There is no such thing as “guaranteed returns.” Never believe any person or investment site that promises big, guaranteed returns.
- Don’t invest in cryptocurrency if you don’t understand how it works. If you need someone’s guidance to use the platforms, you should steer clear.
- Search online for third-party reviews and known scams related to any exchange, app, or investment platform before you invest.
Pig butchering scams are sophisticated schemes that prey on trust and emotional connections to lure victims into fake investment opportunities, often involving fraudulent cryptocurrency. They often begin with unsolicited contact, progress through the building of a false relationship, and end with the victim losing large amounts of money. By staying vigilant, researching investment opportunities thoroughly, and avoiding unregulated platforms, you can avoid falling victim to these advanced and devastating scams. Awareness and caution are the best defenses against these increasingly sophisticated threats.