Over recent years, online scams have become increasingly prevalent and sophisticated. From phishing emails to fake websites, scammers have developed ever-more convincing methods for deceiving and exploiting individuals.
The popularity of social media and online dating platforms -has provided scammers with even greater opportunities to reach potential victims. One particularly sinister type of scam that has become more common is the ‘pig butchering’ scam.
In this article, we’ll take a look in greater detail at these scams, including what they are and how they work. Recognising the signs and understanding how to protect yourself from malicious scams can help you avoid becoming a victim.
What is a pig butchering scam?
A pig butchering scam is a type of long-term scam in which the victim is misled into making contributions, usually in the form of cryptocurrency, to a fraudulent scheme.
The scam originated in China in 2020 and grew in popularity during the pandemic. The term comes from the practice of fattening up a pig before slaughter and describes the scammer’s approach of building a relationship with a victim.
Through gaining their trust, victims are ‘fattened up’ with promises of love, friendship and lucrative investments, only to be ‘slaughtered’ when the scammer disappears with their money.
How do they work?
Pig butchering scams are highly orchestrated and manipulative schemes that are designed to exploit individuals’ emotions and trust for financial gain. Whilst some details may vary from case to case, the general pattern for these scams is broadly similar.
Initial contact made through social media or dating apps
The con typically begins with a scammer making contact with a victim through social media platforms, dating apps or other popular online communication channels. They will mislead victims by posing as an attractive and successful individual using fake profile information and stolen photos to lure people into communicating.
Building trust and emotional intimacy
Once contact is established, the scammer will put significant time and effort into building a strong rapport with their victim. They prey on victims who are particularly vulnerable and lonely, and appear more genuine by engaging in frequent and personal communication.
By sharing details of their fictional lives and expressing genuine interest in their victim’s life over several weeks or even months, the scammer builds a strong emotional connection and gains the victim’s trust.
Gradual introduction of investment opportunities
After securing the victim’s trust, the scammer starts to steer the conversation towards financial matters, often discussing lucrative investment opportunities. They might claim to have made significant profits from these investments and talk about how the victim could also benefit.
The scammer typically presents these opportunities as low-risk and highly profitable, often involving cryptocurrency, foreign exchange trading or other speculative ventures.
Convincing the victim to invest larger amounts over time
To start with, the scammer may encourage their victim to make a small investment, and then use manipulated data and fake reports to show huge potential returns. They then encourage the victim to invest greater sums of money to capitalise on this success whilst keeping up the façade of profitability.
As the victim invests more, the scammer’s promises grow, pushing the victim to commit significant financial resources.
Sudden disappearance of the scammer and the money
The scam reaches its climax when the scammer decides they have extracted as much money as possible from the victim. At this point, they cut off all communication and disappear, often deleting profiles they used to communicate. The victim is left reeling from the broken promises and financial loss.
As with many other online scams, victims often feel highly embarrassed and ashamed for being tricked. They can suffer from devastating mental health impacts as a consequence.
Notable cases of pig butchering scams
Whilst pig butchering scams are on the rise, victims are often too ashamed to speak publicly about their experiences. As such, details of cases often go unreported.
But, in 2021, an anonymous man in the San Francisco Bay area was conned out of more than $1 million by a scammer.
The scammer, who gave their name as ‘Jessica’, contacted the victim by phone stating that she believed he was an old colleague. Over several months, the man and the scammer exchanged thousands of WhatsApp messages as the scammer turned his fears and insecurities to her advantage.
In another case from the US, Barry May, a divorced man in Mississippi, lost over $500,000 to a scammer – and was left with only $10,000 in savings.
In 2023, pig butchering scams resulted in over $3.5 billion in losses and affected more than 40,000 victims in the United States alone. According to the FBI, some individuals have lost over more than $2 million to these scams.
How to protect yourself from pig butchering scams
Due to how widespread scams like this are online, safeguarding yourself and your loved ones is vitally important. Here are some key tips for avoiding these scams:
- Be cautious with random online acquaintances – Even if the person has been communicating with you for a while. If you can’t verify their identity easily, and if it seems too good to be true, it probably is!
- Avoid investing carelessly in obscure investment schemes – No matter how attractive they may appear.
- Avoid cryptocurrency schemes if you’re unfamiliar with them – The number of scams in this sector is particularly high. Blockchain transactions are irreversible and uninsured.
- Remember the number one rule of investing – The higher the potential growth, the greater the risk. Never invest money that you’re not prepared to lose. Seek professional advice if you’re ever unsure.
