Imagine you get this random text from an unknown number out of the blue: “My dog needs to be seen by a vet right away. Can you help me?” Do you respond to let the person know they have the wrong number? Do you ignore it? What do you think most people would do?
This type of message is one of the many used by scammers to hook people into in what’s being called “Pig Butchering,” a scam that led to victims losing $429 million in 2021, according to the Internet Crime Complaint Center’s press release about online safety earlier this year.
What is “Pig Butchering?”
Pig Butchering is a scam where scammers target victims and form a friendly relationship for days or weeks, presenting themselves as financially stable individuals, eventually encouraging them to invest in crypto before convincing them to transfer their assets to a fraudulent website the scammer controls.
The scam relies heavily on building strong rapport with the victim and it’s what makes the technique unique: Most victims consider the scammers “friends” and build a foundation that is not based on investing, money, or crypto. They often lure their victims by posing as young, attractive people.
The scammer will direct the conversation to money once enough trust is formed in the relationship, while attributing their financial stability to crypto. Eventually, they convince the victim to buy crypto from a genuine site, but persuade them to transfer the crypto to a fake crypto website the scammer controls. The victim is shown amazing “returns” to their investments, ideally to inspire them to keep investing on the fake crypto website.
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Eventually, when the victim tries to take the money out, they are faced with many different fees, taxes, and hurdles that cost money and never seem to end. Each is a way for them to squeeze more money out the victim before they realize they’ve been scammed—by which point, the scammer disappears with a lot of money; in some cases, millions.
Who are the targets for Pig Butchering?
Targets are reached over text, Facebook, LinkedIn, WhatsApp, or Tinder and are usually high-earning individuals. Reports have also shown that scammers target empty-nesters or middle-aged people who might appear lonely, since they are more willing to put the effort in building a new relationship.
Ideally, the target is someone who is a professional in their respective field but are new or only vaguely familiar with crypto. Maybe they feel like they missed the boat to invest back when crypto was hot, but they are interested now in the possibility of making money from it.
Where does the name Pig Butchering come from?
The name comes from the idea of fattening up a pig before slaughtering it. It’s a euphemism for the victims being squeezed out of their money as much as possible before they realize they’re being scammed.
The scam started when crypto was on the rise, but now that is going down, the scammers convince you that you can make money by short-selling crypto, or selling before the dip.
Robert McMillan writes for the Wall Street Journal that the scam isn’t tied exclusively to crypto—the same technique can be applied to stocks, or to convincing you to send gift cards or wire money to help them if they’re in trouble. The core root of “Pig Butchering” is what’s called a romance scam or confidence scam, which has existed for a long time. The crypto spin is just a new way to steal from victims because transactions with crypto are easy and fast.
How can I avoid being a victim of Pig Butchering?
While we like to think we are smarter than the average person, the reality is we are all susceptible to being scammed. The good news is there are steps to ground ourselves and not fall prey to the scammers’ malpractices:
- Don’t take investing advice from people you meet over the internet.
- If someone claims to have exclusive investment opportunities and urges you to act fast, they are probably trying to scam you.
- If the person came from unsolicited communication, be skeptical.
- Don’t talk to people on the internet about your current financial status, especially if they are unknown or untrusted people.
- If returns for an opportunity are higher than average, or too good to be true, it probably is.
- Never provide your banking information, Social Security Number, or any sensitive information to anyone online or to a site if you do not know it is legitimate.
What to do if you’ve been a victim of Pig Butchering?
If you’ve been impacted by this type of scam, there is help available from organizations like the Global Anti-Scam Org and Solidus Labs that offer resources to victims. You can also file a complaint with the FBI’s Internet Crime Complaint Center.
