As digital technology continues to advance, so do the tactics of scammers looking to steal money from unsuspecting victims. One such technique is known as “pig butchering,” a name aptly derived from farmers fattening up pigs before slaughter to maximize the amount of meat obtained. Pig butchering scams involve building trust with a person over weeks or months under the guise of a romantic interest, before eventually convincing them to invest in a scheme that promises large returns.
This kind of investment scam borrows from the playbook of romance scammers before putting an investment spin on it, often involving cryptocurrency. The scammers will promise huge returns and invite the victim to participate in the investment opportunity. Once money is deposited, the scammers will initially enable the victim to make withdrawals, but eventually lock down the account and claim that they need a deposit of some percentage of the victim’s balance to return access. Even when the deposit is paid, the money isn’t returned, and the scammers invent new reasons for the victim to send more money.
It may seem far-fetched that one could fall into such a scam, but the numbers show that it’s all too common. In 2022, dating scams cost their victims over US$1.3 billion, and nearly 70,000 people reported falling victim to such scams, with a median reported loss of US$4,400. In one particular case, a victim lost as much as US$2.5 million from being deceived into crypto investments. What’s more, pig butchering scams are conducted on an industrial scale, employing thousands of people for a pittance or no money at all. In 2021 alone, US$429 million was lost to pig butchering scams.
To avoid becoming a victim of pig butchering scams, it’s important to be wary of unsolicited messages, including those that you apparently receive “by mistake.” Don’t trust anyone you’ve just met online just because they seem likeable, and be especially cautious of unsolicited investment advice. The FBI has shared a list of characteristics that should be considered red flags, including being contacted by a long-lost contact or a stranger on social media, being presented with a URL that doesn’t match the official website of a popular cryptocurrency market/exchange, encountering a warning that an investment app you’ve downloaded is “untrusted” when launched on Windows, and an investment opportunity that sounds too good to be true.
With the rise of digital technology, scammers are becoming more sophisticated in their tactics. It’s essential for everyone to be aware of these scams and to take steps to protect themselves from falling victim to these fraudsters.