According to Wikipedia: A pig butchering crypto scam (Chinese: 杀猪盘, sha zhu pan or shazhupan, literally killing pig game) is a type of online scam where the victim is encouraged to make increasing financial contributions over a long period, usually in the form of cryptocurrency. Such scams are commonplace on social media and dating apps, and often involve elements of catfishing, investment fraud, and romance scams. The scammer builds trust with the victim through online communication, subsequently persuading them to invest in a fraudulent cryptocurrency scheme. The “butchering” or “slaughtering” of the victim transpires when their assets or funds are stolen. Perpetrators are typically victims of a fraud factory, where they are lured to travel internationally under false pretenses, trafficked to another location, and forced to commit the fraud by organized crime gangs.
What’s a Pig Butchering Crypto Scam?
As mentioned above, “Pig butchering,” as the technique is known — the phrase alludes to the practice of fattening a hog before slaughter — originated in China, then went global during the pandemic. Today criminal syndicates target people around the world, often by forcing human trafficking victims in Southeast Asia to perpetrate the schemes against their will. ProPublica recently published an in-depth investigation of pig butchering, based on months of interviews with dozens of scam victims, former scam sweatshop workers, advocates, rescue workers, law enforcement and investigators, along with extensive documentary evidence including training manuals for scammers, chat transcripts between scammers and their targets and complaints filed with the Federal Trade Commission.
Warning Signs of Pig Butchering Crypto Scams
- Unsolicited contact: Be wary of unexpected messages from unknown numbers or social media accounts. Also, be careful on dating apps and verify that the contact is a real person.
- 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.
- Romantic interest from strangers: Be cautious of online suitors who quickly profess strong feelings and then ask for money.
- Requests for personal information: Don’t 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 can’t easily cash out your supposed investment returns.
- Inconsistent or vague details: Watch out for contradictory information or a lack of concrete specifics about the supposed investment.
- Promises of easy riches: Be skeptical of anyone claiming that you can get rich quick with minimal effort.
- Persistent attempts to isolate you: It’s a red flag if scammers try to monopolize your attention and cut you off from loved ones.
How to Avoid Being a Victim of Pig Butchering Crypto Scam
If you encounter one or more of the warning signs mentioned above, the best course of action is to either ignore the person or politely end the conversation while blocking the contact. It may seem harmless to continue chatting with someone who claims to have “accidentally” found you or misdialed through an app or text message, but this is often the first step down a dangerous rabbit hole. Scammers are skilled at building trust and gradually manipulating their victims, so it’s crucial to cut off contact as soon as you suspect something is amiss.
Research Is Important
Remember, legitimate investment opportunities rarely come from unsolicited messages or chance encounters online. If someone you don’t know recommends an investment or encourages you to invest, proceed with extreme caution. Always do your own research and due diligence before committing any money. This means verifying the identity and legitimacy of the person or company offering the investment. Check their background, credentials, and registration with regulatory bodies like the Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA).
This also means researching the investment itself. Look for information from reputable sources, such as financial news outlets, government websites, or registered investment advisors (RIAs). Be wary of investments that promise guaranteed high returns with little or no risk, as this is a common red flag for scams. If something seems too good to be true or makes you feel uncomfortable, it’s best to err on the side of caution and avoid the investment altogether.
Other Precautions
In addition, there are several other precautions you can take to protect yourself from pig butchering scams:
- Be cautious about sharing personal or financial information online, especially with individuals you don’t know well—knowing someone for a few months is not long enough. Scammers can use this information to target you more effectively or even steal your identity.
- Keep your social media profiles private, and be selective about accepting friend or follow requests from strangers. Scammers often use social media to gather information about potential victims and tailor their approach accordingly.
- Educate yourself about the common tactics used by scammers, such as love bombing, guilt tripping, or creating a false sense of urgency. Being aware of these manipulation techniques can help you recognize and resist them.
- Communicate with your family and friends about your investment decisions. Scammers often try to isolate their victims from loved ones who might question the legitimacy of the investment or express concern about the relationship. Maintaining open lines of communication can help you stay grounded and avoid falling for a scammer’s tactics.
How to Report Pig Butchering Scams
- Contact your bank: Inform your bank about the fraud immediately to try and stop further transactions.
- Report to relevant agencies:
- Broker Complaint Alert (BCA): File a police report with BrokerComplaintAlert.org.
- FBI: Report the crime to the FBI’s Internet Crime Complaint Center (IC3) and contact your local FBI field office.
- File with federal agencies:
- FTC: File a complaint with the Federal Trade Commission. They work with other agencies to investigate financial crimes.
- State agencies: Depending on your state, you may also be able to report to a state-specific agency, such as the California Department of Financial Protection and Innovation (DFPI).
What to Do After Reporting
- Do not send more money: Do not send any additional funds to the scammer or to anyone who claims they can help recover your money, as this is often a follow-up scam.
- Do not provide more information: Do not share any further personal or financial information with the scammers.
- Gather your information: Collect all relevant information, such as transaction details, wallet addresses, transaction hashes, and communication logs, to provide with your report.
- Resist pressure: Be wary of any pressure from scammers to act quickly. Take a moment to assess the situation before taking any action.
