What is a Pig Butchering scam?
“Pig Butchering” is a scam completed strictly online often using cryptocurrency or payment apps. Pig Butchering is best described as a mix of a romance scam + investment scam. Typically, the scam starts out with romantic interest to persuade the victim to trust the perpetrator. Once trust is gained, the perpetrator convinces the victim to send money for an “investment” scheme that is run by the perpetrator instead of a trusted investment company.
How does the Pig Butchering scam work?
- Fattening the Pig: The scammer begins by creating a fake identity and contacting potential victims through text messages, social media, or dating apps. Over time, the scammer will form what seem to be authentic relationships with victims through frequent and friendly exchanges, resulting in the individual developing a deep feeling of trust for the scammer.
- Butchering Is Ready to Begin: After the relationship forms, the scammer may weave in talks of money, cryptocurrency/bitcoin, or investments that they have to pique the interest of the victim. Often, but not always, they won’t directly ask for money or cryptocurrency; instead, they offer to guide victims’ investment strategies and instruct the victim to send money to various platforms that are controlled by the scammer.
- Bled Dry: Victims initially start by sending small amounts of funds to a cryptocurrency exchange. To sustain the flow of money, the scammer will present falsified account information, showing that the victims’ investments are growing. The scammer may even allow a victim to cash out a portion of their initial investment to maintain their authenticity and to sustain the victim’s trust. The scammer will eventually continue to pressure the victim to send money until there is no money left to send.
Once there is no longer any money left, the scammer will cease contact and the victim will be left with nothing. Victims often lose their entire life savings over the course of this scam. In fact, the University of Texas found that more than $75 billion was lost to Pig Butchering scams in the last four years.
How can you protect yourself from this type of scam?
- Be wary of online relationships – especially if you have never physically met the person on the other side of the text message, email or app.
- If someone you are in an online relationship with requests you send money via Bitcoin or cryptocurrency, cease contact with that person immediately and contact law enforcement. This person is most likely trying to commit a crime. Unfortunately, you are probably not the first person they have attempted to scam with this tactic, so giving law enforcement as much information as possible can help protect future victims.
- Use caution when it comes to sending money to strangers with Cash App, Venmo, Zelle, or any other mobile money app used for person-to-person money transfers. These are apps are commonly used for scammers for quick money transfers.