Pig butchering, a gruesome term for a widespread and sophisticated scam, has cost victims an estimated $75 billion globally. Named after the practice of fattening pigs before slaughter, this modern-day scam involves scammers grooming victims over time, luring them into fake cryptocurrency investments.
How Pig Butchering Works
Scammers often begin by sending seemingly innocent “wrong number” text messages. If someone responds, the scammer patiently engages over weeks or even months, slowly building trust. The victim is eventually convinced to invest in what they believe are lucrative crypto opportunities, but in reality, these investments are fake. Once the victim has sent enough money, the scammer vanishes.
Who’s Behind Pig Butchering?
“These scams are run by large criminal organizations operating with little interference,” said John Griffin, a finance professor at the University of Texas at Austin. Griffin and graduate student Kevin Mei published research on pig butchering, revealing how scammers use methods like multiple transactions, cryptocurrency swaps, and blockchain bridging to cover their tracks.
Tragically, the scam has two sets of victims. Many of the scammers themselves are victims of human trafficking, forced to operate out of compounds in Southeast Asia, scamming people worldwide.
Warning Signs of Pig Butchering Scams
The financial security website Aura lists several red flags:
- Receiving “wrong number” text messages
- Conversations that quickly shift to cryptocurrency
- A dating site match “love bombing” you
- Encouragement to download a special crypto trading app
- Small returns on initial investments, followed by requests for larger sums
- Pressure to pay hefty tax bills
Other signs include being pressured to invest quickly, inconsistent details about the investment, difficulty withdrawing funds, and persistent efforts to monopolize your attention.
What to Do If You’re a Victim
If you believe you’ve fallen for a pig butchering scam, follow these steps:
- Cease all contact with the scammer immediately.
- Notify your bank or broker and block any further payments.
- Report the crime to local law enforcement and file a complaint with the FBI’s Internet Crime Complaint Center (IC3).
- Collect all relevant documentation, such as text messages, screenshots, and financial records, to help investigators.
- Consider seeking counseling to address the emotional impact of the financial loss.
Hope for Victims
In a recent case, a Massachusetts man was able to recover $140,000 that he lost in a crypto scam targeting Russian-speaking seniors. Authorities were able to seize $269,000 from the scammers’ crypto wallet and distributed the funds to four victims in the state.
While recovery is rare, cases like this offer a glimmer of hope for victims of pig butchering scams.