A recent surge in cryptocurrency scams has been observed, with a particular focus on establishing contact to build trust before ultimately duping victims of their investments. These schemes have become increasingly prevalent, with a staggering $5.9 billion lost in 2022 alone, as reported by the Chainalysis 2023 Crypto Crime Report. One particularly insidious scheme, known as the “pig butchering” scam, has gained notoriety for its combination of romance, friendship, and investment fraud tactics.
The pig butchering scam, also referred to as a romance scam, is a complex and long-term deception that intertwines elements of investment schemes, romance scams, and cryptocurrency fraud. Originating in Southeast Asia, the scam derives its name from the Chinese phrase “Shāz Hū Pán,” which translates to pig butchering. In this scam, a network of cryptocurrency scammers actively scour dating and social media platforms in search of unwitting victims.
Scammers typically create fake profiles on platforms like Tinder or WhatsApp to initiate contact with potential victims. By engaging the victim in seemingly harmless conversations, the scammer gradually builds a facade of trust and intimacy. This gradual process is akin to “fattening up the pig” by engendering a false sense of security before ultimately conning the victim out of their money – the “butchering” phase of the scam. The scam can take various forms, ranging from a romance scam on a dating app to impersonating a long-lost acquaintance.
The modus operandi of a pig butchering scam involves the scammer initiating contact with the victim through social media, dating apps, or text messages. Establishing trust is crucial, with scammers investing weeks or even months in cultivating a sense of familiarity with the victim. Once trust is established, the scammer encourages the victim to invest in cryptocurrency trading, often promising lucrative returns through insider tips or specialized knowledge. The victim is then directed to download an app or visit a website for trading purposes, only to discover that the platform is controlled by scammers.
To further solidify the illusion of profitability, scammers may simulate trades to create the appearance of earnings or prompt victims to withdraw supposed profits. As the victim grows more invested in the scheme, they are persuaded to contribute additional funds to the account. However, when attempts are made to withdraw funds, the victim is told to pay fees or taxes before access is granted. Eventually, it becomes apparent that the platform is fraudulent, with transactions vanishing from the blockchain, leaving victims empty-handed.
Detecting a pig butchering scam requires vigilance and an awareness of key warning signs. Promises of exorbitant and rapid returns, requests for upfront cryptocurrency payments, and the merging of online dating with investment advice from unknown individuals should all raise red flags. Other indicators of a pig butchering scam include unsolicited messages from unknown numbers, offers of guaranteed cryptocurrency returns, extravagant gifts or vacations, and the scammer’s insistence on conducting trades together on a specific platform.
To protect against pig butchering scams and other fraudulent schemes, individuals should exercise caution when presented with investment opportunities, conduct thorough research on recommended websites and apps, and be skeptical of unrealistic promises of wealth. By remaining vigilant and informed, investors can safeguard themselves against falling victim to these sophisticated and damaging scams.