Security Corner Blog

Pig butchering scams, a rapidly increasing form of financial fraud, are a severe threat that combines social engineering and cryptocurrency scams. The term 'pig butchering' is derived from the agricultural practice of fattening pigs before slaughter, a metaphor for how scammers fatten' their victims with false trust and affection before exploiting them financially. These scams often commence with an innocuous, wrong-number text message. If the recipient responds, they are gradually enticed into fake crypto investments. The fraudsters then vanish, leaving victims with significant financial losses. These scams have led to staggering losses of hundreds of thousands, sometimes millions of dollars, underscoring the critical need to be vigilant and informed.

How Pig Butchering Scams Work

Creating a Fake Persona

Scammers create false online identities, often posing as successful investors or attractive singles on dating apps and social media. These identities are carefully crafted, to appeal to potential victims' interests and vulnerabilities. They use stolen or AI-generated photos and fabricated backstories to make their personas seem credible and trustworthy.

Initiating Contact

Scammers contact potential victims via dating apps, social media, or random phone calls and texts. They use scripts and pre-written messages to initiate conversations and gauge the victim's receptiveness. Scammers aim to find those most likely to fall for their tactics by casting a wide net.

Building Trust

Scammers invest weeks or even months in cultivating a relationship with the victim, often feigning romantic interest. They engage in frequent, amiable communication, showing interest in the victim's life and sharing personal stories to create a false sense of closeness. They avoid discussing money or investments initially. Using 'mirroring' techniques, they match the victim's language, interests, and beliefs to foster a sense of connection and familiarity. They may even send small gifts or tokens of affection to gain the victim's trust and emotional investment.

Introducing Investments

Once trust is established, the scammer steers the conversation toward investments, often involving cryptocurrency or alternative assets like foreign exchange. This is framed as an opportunity to build a future together or achieve financial freedom. The scammer present themselves as an experienced investor eager to help the victim succeed, sharing fabricated success stories or claiming insider knowledge of lucrative opportunities.

Prompting Deposits

The scammer convinces the victim to download a supposed investment app or visit a fraudulent investment platform. To lower the victim's guard, they walk the victim through creating an account and making an initial deposit, typically a small amount. Scammers may even let the victim withdraw this initial deposit to build trust further and make the investment seem legitimate.

Manipulating Further Investment

Once the victim has made an initial deposit, the scammer uses manipulated data and fake reports to show substantial returns on the investment. They encourage the victim to invest more money to capitalize on this supposed success, often using time-sensitive offers or claiming an ample opportunity is about to expire. Scammers may also introduce a sense of exclusivity, claiming the victim is part of a select group with access to investments. As the victim invests more money, the scammer continues to show false profit reports and uses emotional manipulation to maintain control, professing love, promising a shared future, or even using threats and intimidation. This emotional manipulation is crucial tactic scammers use to exploit their victims' trust and vulnerability, it's essential to be aware of these tactics to avoid falling into their trap.

Vanishing Act

Eventually, when the scammer has removed as much money as possible, they abruptly cut off all communication and disappear. The fraudulent investment website or app goes offline, preventing the victim from accessing their supposed investment or contacting the scammer. Scammers sometimes use the information gained during the scam, to commit identity theft or target the victim's friends and family.

Warning Signs of Pig Butchering Scams

• Unsolicited Contact: Avoid unexpected messages from unknown numbers or social media accounts. Verify the identity of contacts on dating apps.
• Too-Good-to-Be-True Investments: Claims of guaranteed high returns with little or no risk are red flags. If it sounds too good to be true, it probably is.
• Pressure to Invest Quickly: Legitimate opportunities rarely require rushed decisions. Be cautious if you're pressured to act fast.
• Requests for Personal Information: Never share sensitive data like bank details with unverified individuals.
• Unregistered Investment Platforms: Check if investment websites or apps are registered with official regulators.
• Difficulty Withdrawing Funds: Be suspicious if you need help to quickly cash out your supposed investment returns.
• Inconsistent or Vague Details: Watch out for contradictory information or a need for concrete specifics about the supposed investment.
• Promises of Easy Riches: Be skeptical of anyone claiming you can get rich quickly with minimal effort.
• Persistent Attempts to Isolate You: Scammers may try to monopolize your attention and distract you from loved ones. This is a major red flag.

How to Avoid Pig Butchering Scams

• Be Skeptical of Unsolicited Messages: Treat unsolicited messages, especially those involving investments, with suspicion.
• Verify Identities: Take the time to verify the identities of online contacts. Use reverse image searches for profile pictures.
• Research Investment Opportunities: Before investing, thoroughly research the opportunity. Check for reviews and ensure the platform is registered with financial regulators.
• Avoid Sharing Personal Information: Do not share personal or financial information with people you have not verified.
• Be Cautious of High-Pressure Tactics: Legitimate investment opportunities will not pressure you to make quick decisions.
• Seek Advice: Consult with financial advisors or trusted individuals before investing.

Conclusion

Pig butchering scams are a sophisticated form of financial fraud that exploits victims' emotions and economic vulnerabilities. By understanding how these scams work and recognizing the warning signs, individuals can better protect themselves from falling victim. Always be skeptical of unsolicited investment opportunities and take the time to verify the legitimacy of any potential investments. If targeted, it is crucial to report the scam to authorities and seek support to mitigate the financial and emotional damage. This not only helps in your own recovery but also aids in the prevention of further fraud.

Article content and third-party links are provided for information purposes only. 

Reference

Bloomberg, Z. F. /. (2024, March 1). $75 billion lost to pig-butchering scam, new study estimates. Time. https://time.com/6836703/pig-butchering-scam-victim-loss-money-study-crypto/

Hayes, A. (n.d.-a). Pig butchering scams: What they are, warning signs, and how to avoid them. Investopedia. https://www.investopedia.com/pig-butchering-scams-8605501#:~:text=Unsolicited%20contact%3A%20Be%20wary%20of,no%20risk%20are%20red%20flags

Hayes, A. (n.d.-b). Pig butchering scams: What they are, warning signs, and how to avoid them. Investopedia. https://www.investopedia.com/pig-butchering-scams-8605501#:~:text=Unsolicited contact%3A Be wary of,no risk are red flags.

Lvoff, A. (2024, May 15). Preventing “pig butchering” scams. Experian Insights. https://www.experian.com/blogs/insights/pig-butchering-scams/