In recent times, the percentage of online fraud has increased. Therefore, it becomes crucial to understand the Pig Butchering Scam. From the idea of fattening a pig before slaughter the name of this scam has come. Hence, scammers convince people to invest more money in cryptocurrency. They try to act like it is a genuine chance for people. While such scams are spread throughout the world, these can result in big financial losses for victims. Once people invest their money, scammers will disappear after collecting it. Let's dig into the article to learn more about Pig-butchering Scam.
What is a Pig-butchering Scam?
A pig butchering scam is an investment fraud where scammers ask people to invest their money in profitable ventures. Usually, they give promises to provide high investment returns within a few months or a short period. They use fake images along with investment portfolios that are false. With the help of these, scammers try to convince victims to prove that their scheme is legal. As soon as victims believe this and invest a huge amount of money, after taking the money, scammers will disappear. As a victim, you were incapable of recovering your invested money.
This term comes from the idea that victims are fattened up with the promise of huge returns before "slaughtering" them for their money.
In this scam, a random person starts a normal conversation. Scammers could get a number of victims from a mutual friend. Sometimes, they act like they are unsure if they have the correct number. In this way, scammers try to engage the targeted person in conversation. In order to lure people, they use pictures of attractive women. In this way, scammers try to showcase their desire for romance to create trust so that they can set up a connection.
How the Pig-butchering Scam Works:
Like other investment frauds, this type of scan follows some steps using which scammers manipulate and deceive victims. They talk with victims about getting huge returns on their investments within a short period. Now, let's see how the pig butchering scam works.
- Gaining a Victim’s Trust:
Scammers first try to act like seasoned investors or experienced professionals. Their aim is to gain the victim's trust. Scammers use online forums or social media platforms through which they keep themselves engaged with potential victims. Thus, they create trust in the people to achieve financial success. Besides, they add a layer of companionship to this scam. In this way, they are able to exploit victims' need for companionship for financial success.
- Pitching the Investment:
As soon as scammers are able to gain the trust of people, they promise a great opportunity to get successful returns and reliable investments. It includes stocks, cryptocurrencies, or other financial instruments. While they use persuasive language, sometimes they ask people and try to convince them by saying that they need to invest money very urgently.
- Collecting Money:
Once scammers succeed in persuading the victim, they will collect the invested money of those people. In order to make tracking harder for victims and other people, scammers often use cryptocurrencies or digital payment platforms.
- Disappearing Completely:
When scammers have got the target amount from the victims, they will disappear. Therefore, people do not find them when they try to withdraw their money. Scammers generate new identities or delete the online existence. Therefore, it becomes challenging for victims to recover the amount they have invested.
Every step takes the victims into the web of lies of the scammers. Victims cannot identify the scam as they are emotionally invested also. So, they also could not be able to remove themselves from the situation.
How was the Pig Butchering Scam Carried Out?
- In this scan, the “host" attempts to make contact with people via social media, dating apps, or deceptive messages.
- After finding the target, called the “pig," the host tries to set up a friendship with the people so that they can encourage victims to explore cryptocurrency trading.
- The host uses a fraudulent trading application to deceive the victim so that they believe they could gain profits from fabricated trades.
- The more the trust of the victim grows, the host tries to persuade them to invest more money. This idea is called “fattening the pig" before the reveal of the scam.
- As soon as victims try to withdraw their money, substantial fees are imposed by the fake platform. Because of the nature of blockchain transactions, it is quite impossible to retrieve lost funds.
Warning Signs of Pig Butchering Scams:
These are some warning signs of these scams:
- You get “wrong number” texts
- Someone asks you to download a "special" crypto trading
- A match starts “love bombing” you on a dating platform
- A friend asks you to invest money in exchange for a crypto
- An online friend suddenly starts talking about crypto
- Investment sites give tiers with at least investment amounts
- The scammer begins trading with you
- In order to gain trust, scammers use emotional manipulation
- You get a quick and small return on your initial investment
Emerging Tactics— Group Chats And Social Engineering:
Nowadays, the emergence of modern tactics becomes more apparent because pig butchering scammers are adapting as well as refining their ideas continuously. They engaged victims earlier via one-on-one chat messaging. But currently, scammers are seen using group chats, which let them, cast a broader net. Also, in this way, scammers are capable of identifying potential victims with greater efficiency.
Creating Authenticity through Group Chat Interactions:
Scammers are often found sharing photos within the group chat as proof of their regular activities. It helps them to increase their credibility. Images highlighting their alleged earnings are also shared with the members of the group. They want to prove their success from their investments. Thus, they are capable of creating an illusion that everything happening in the group chat is real. So, it becomes challenging for potential victims to guess whether the investment is legal or not. It preys on the psychological phenomenon called social proof. Hence, people trust others' actions and follow them also when they see other people getting success in the group.
The Group Chat Strategy:
Scammers add many people to the groups centred around investment discussions. Thus, they can get the attention of the targets. When the remaining people take an interest in investment, scammers make those people prime candidates for the scam. If someone leaves the group, they might know about the scam or are not taking any interest in investing. It prevents those people from being persuaded by the strategies of the scammers.
In the group, there are several people with different roles. Scammers have generated fake profiles of the chat group members in order to make this group more authentic. In this way, scammers can especially focus on those people who are likely to be more susceptible to their fraudulent schemes. Besides, it creates a situation where social validation is promoted. The reason is that potential victims watch others in the group discussing investment and not calling it out as a scam.
Suspect a Scammer is Luring You in— What To Do?
- Break Off All Contact With The Scammer:
If you are the victim, you need to instantly stop every communication you have made previously across apps, social media, text and email. Ensure that you are not saying goodbye or sending any explanation. You definitely do not want to arouse their suspicions.
- Block And Report Their Account:
In order to add credibility to such a type of scheme, scammers often use many digital "friends" of the host. Ensure that you are reporting each profile that is involved in the scam.
- Change All Your Passwords And Login Credentials:
Suppose you have shared your account number or access codes for cryptocurrency accounts or online platforms. In that case, you have to generate new passwords which are not simple to hack.
- File A Complaint With The FBI’s Internet Crime Complaint Center (IC3):
It lets you add particular details. Also, you can add supporting documents such as screenshots of email, text, and WhatsApp conversations.
- File A Police Report:
You should give all details of the fraud to inform the law enforcement office in your local area. Also you are able to ask them in order to contact the crypto exchange.
- Monitor Your Online And Financial Accounts For Signs Of Fraud:
In order to spot any unknown transaction, you must look into all the credit reports, bank accounts, and credit card statements.
How To Protect Yourself From Pig Butchering Scams:
These are a few things you need to do to stay safe:
- You must not provide your private information to those you have met online only. Ensure that you are not giving your bank credentials or Social Security number (SSN).
- If you haven't seen the person in real life or do not know them personally, you should not send cryptocurrency or money.
- You should not add yourself to any investment site. Besides, you should not download an app because of someone whom you have met online. Remember that this app may deceive you despite seeming real. Scammers may control the app to impress you by saying that you are gaining profits.
- Nothing is like "guaranteed returns." So, you should not believe any site or someone who promises you to give returns. Or don't trust any site that requests you to invest minimum amounts.
- If you are unaware of the working process of crypto currency properly, you should not invest. Hence, it is better to take guidance from a person so that you can use the platform.
- You need to be aware of the popular scams that are related to any app, exchange, or investment platform before being involved.
The Bottom Line:
The most effective thing you should now do is to remain proactive about your digital security. In addition, it is essential to be updated on the latest scams. Also, you need to monitor your credit. When many people get to know about these scams, scammers will succeed less.
Frequently Asked Questions
- What is the pig-fattening romance scam?
In this type of scam, scammers flirt with victims to gain their trust.
- What is pig butchering in AML?
Social engineering tactics are used by fraudsters in order to trick people in a way that they invest most of their money before knowing that the investment is a fraud.
- How do you protect yourself from pig butchering?
These are the tips you should follow to protect yourself:
- You must not send money to someone you have met online only.
- Ensure that you are not talking about your investment or financial position to anyone.
