November 11, 2024 • 8 min
Article Contents
Pig butchering scams are a sophisticated type of fraud where victims are manipulated into investing large amounts of money into fake schemes, typically involving cryptocurrencies. The term “pig butchering” originates from the practice of fattening a pig before slaughter, reflecting how scammers cultivate and “fatten” their victims with false promises of high returns, only to disappear with their investments.
Sophisticated scammers have carefully refined the pig butchering process. Though there’s some variation, the typical pattern has six steps.
1. Create a Fake Profile or Persona
Pig butchering scammers always create a fake persona. Sometimes that persona is accompanied by a social media profile or professional networking profile. They may create numerous profiles so that, if you search their name, you find them in other places, making them appear more legitimate. Stolen identities and AI-generated images may be used.
2. Send a Message
Pig butchering scammers will almost always make the first move, whether that’s a direct message on social media or a dating app, or (more commonly) a seemingly benign text message to the wrong number. When it’s a text message, they may immediately turn apologetic and then friendly, seeking to strike up a conversation.
3. Gain Your Trust
Scammers may spend days, weeks, or even months building trust with you, especially if there is a romantic angle. They may share photos or stories to manufacture a sense of intimacy, and ask you about your life so that it seems like they are genuinely interested in you. Sometimes there may be shared cultural backgrounds or beliefs, and small gifts sent to you.
4. Share an Investment Opportunity
Once the fraudster has established rapport with you, he or she will bring up the topic of investments or cryptocurrency, often hinting at insider knowledge, a desire to build a future with you, or the fortune they themselves have made.
5. Ask for Money
Fraudsters will always eventually ask for money, often via a fake investment platform or a fake or legitimate cryptocurrency platform. Sometimes the fraudster will first request a very small amount (even $100 or less) to build your trust. In some cases, the fraudster will disappear after an initial large deposit. But in other cases, the fraudster will use fake “reports” to show that your money is growing, and then continue asking you for more.
6. Disappear
The fraudster cuts off communication and disappears. Occasionally fraudsters may taunt victims after taking their money, but they will eventually stop responding or reaching out.
In October 2024, the media reported about a California man who lost over $740,000 to a romantic pig butchering scam.
After meeting a woman online, they enjoyed two months of near daily conversations, including video chats where they shared their life stories and dreams about the future. Then the woman brought up an investment opportunity – for a small initial investment of $1,000.
By the time he realized he’d been scammed, the man had sold his stocks, emptied his retirement savings, and given away his savings – all in the hopes of making millions in cryptocurrency. He was about to sell his home to cover supposed “taxes” that he would need to pay in order to withdraw his profit. Fortunately, a friend intervened – but by then he had lost over $740,000 that couldn’t be recovered.
A few years earlier, in 2022, a 52-year-old man from the San Francisco Bay Area seemingly randomly met a woman named “Jessica” via WhatsApp.
In typical fashion, Jessica shared personal information to build trust and pretended to be interested in the man before introducing promises of cryptocurrency riches via a trading app called MetaTrader. In addition to pretending to care about him personally, Jessica also claimed to have special insider information that would lead to riches.
Eventually, the man “invested” over $1 million. As he later learned, however, the MetaTrader app screens showing astounding profits had been manipulated – and his money was gone. He contacted authorities, who told him that they would investigate but were frequently hampered by the pig butchers being overseas.
An Unsolicited Message
Every single pig butchering scam begins with an unexpected message – usually via text message, but also through social media or a dating app. Be wary of unknown persons and their messages, even ones that seem innocent. If you’re on a dating app, consult the app’s help section regarding scams.
Uncommon “Kindness” from a Stranger
There are occasionally wrong numbers dialed or messaged. But is it likely that a stranger is really going to be eager to strike up a friendship or relationship based on an erroneous message?
Romantic Interest
Many but not all pig butchering scams are based on feigned romantic interest by the scammer towards you.
Requests for Personal Information
You should never give out your personal information – including your financial details like your online banking login – to anyone, especially not a stranger you meet online or via text message.
“Too Good to be True” Promises
If it sounds too good to be true – such as a guaranteed high return with “no risk,” it’s not true.
Unregistered Investment Platforms
A hallmark of pig butchering scams are fake investment platforms and websites. Do a search of the name of any investment platform or website to see if it’s mentioned other places and officially registered with the relevant government regulator.
Pressure to Act Quickly
Scammers know that you’re more likely to make poor decisions when you’re rushed. Legitimate investments don’t require immediate decisions.
Attempts to Isolate You
Not specific to pig butchering scams, attempts to isolate you from your friends and family (or encouragement to keep secrets from them) are red flags of a scammer.
Inconsistent or Vague Details
A real investment opportunity or platform has solid, consistent details.
Difficulty Withdrawing Funds
If it’s unclear how the investment or cryptocurrency platform allows you to withdraw your investment, it’s a scam.
According to the FBI, Americans lost over $4 billion to cryptocurrency investment scams in 2023, of which more than $1.1 billion was siphoned from California residents alone.
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. 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.
To protect yourself during the car buying process, keep an eye out for the telltale signs of a shady dealership.
If anything doesn’t feel right, trust your gut. If you have questions or concerns that the dealer can’t address properly, it’s best to walk away.
If you suspect you are a victim of a pig butchering scam, cease communication with the scammer, and notify your credit union or bank immediately.
Contact your local police department and file a police report. You should also file a complaint on the FBI’s Internet Crime Complaint Center (IC3) at ic3.gov. If the scam involved cryptocurrency, send an email to cryptofraud@usss.dhs.gov too, and the Secret Service will refer your information to an appropriate field office.
Sources:
Cryptocurrency Fraud Report for 2023, FBI
Forbes, “How One Man Lost $1 Million to a Crypto Super Scam,” published September 9, 2022
Investopedia, “Pig Butchering Scams: What They Are, Warning Signs, and How to Avoid Them,” published March 26, 2024
Los Angeles Daily News, “How Pig Butchering Romance Scams Siphon Millions from Californians Every Year,” published October 13, 2024
This article was created in accordance with the Patelco editorial policy.
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