Pagoda Blog

You can tell a scam is particularly nasty when it has a name like “pig butchering scam.” It makes you shudder just hearing the words, doesn’t it? Unfortunately, pig butchering scams have seen an uptick as of late and pose a real threat to anyone looking for companionship and connection online — either romantic or platonic. Before you write this off as a scam that you yourself would never fall for, pig butchering has stolen at least $75 million from people across the globe from January 2020 to February 2024. 

 

You simply never know what situation you might find yourself in and it never hurts to be informed, so let’s deconstruct how exactly a pig butchering scam works. 

 

How does a pig butchering scam work? 

A pig butchering scam is a sophisticated form of social engineering. The scammer will often build up trust with their target over weeks or months before going in for the kill. (Sorry, that metaphor sent chills down my spine, but it’s an apt one in this case.) 

 

This type of scam originated in China where it is called shāzhūpán, meaning to fatten someone up and then take everything they have. First, the scammer either “mistakenly” texts or messages the target within a dating app. The message appears to be intended for someone else that the scammer knows well. 

 

Here’s an example: 

 

Let’s say the target’s name is Emily. The scammer may send a text that says, “Hey Tiffany! I’d still love to grab lunch downtown this week if you’re free!” 

 

Emily then responds, “Sorry you must have the wrong number,” opening up a conversation with the attacker. The correspondence continues from there with the attacker dropping bits of personal information about themselves. An especially proficient attacker will have done their research beforehand, giving them insight into sensitive data such as where their target’s from, if they have children, and what college they attended. They then use that data to create a false sense of intimacy and connection between themselves and Emily. 

 

Eventually, once Emily fully trusts the scammer, they broach the subject of cryptocurrency: 

 

“Hey, Emily! I just found out about this great investment opportunity and immediately thought of you. It’s a new form of cryptocurrency and you can invest through this third-party app. I’ve already tripled my investment in the last month. You have to check it out!” 

 

This is where the scam gets especially sophisticated. 

 

The scammer shares a link to a third-party investment app that appears legitimate. The app appears in the app store and has multiple positive reviews. It has thousands of users and a working phone number and/or email for customer support. The platform even includes real-time market data from other users, proving the investment is as close to a sure bet as you can get. 

 

There are no obvious red flags so Emily moves ahead with investing her savings into the app. And for a time, it looks like her online friend was right: Her money is steadily growing and she feels elated at her good luck. 

 

The red flags arise when Emily either deposits a large sum of money and/or attempts to withdraw her investment after a period of growth. The platform then shuts down, blocking her from accessing her funds, and the scammer drains the account. Or worse, the platform will demand a large withdrawal fee or a tax to be paid on the investment before claiming it will grant access to the money. If the target pays, then the scammer makes off with that money too. 

 

Can you see why it’s called pig butchering? 

 

The scammers wait until their target has deposited most of their savings into the account, and then ask for more, before blocking access and stealing the funds. Or in more gruesome terms, before bleeding them dry of all their money. 

 

Perhaps the worst part of these scams is that they are orchestrated by crime syndicates that exploit people in Southeast Asian countries looking for work. The bosses of these elaborate pig butchering operations trick individuals seeking employment into thinking they’ve landed a job in their field. 

 

The interview takes place remotely and the job offer typically requires them to move. Once they arrive at their new place of employment, the victim is taken hostage and blackmailed into implementing these malicious social engineering attacks. 

 

It’s a truly awful scheme for both the person forced into acting the part of scammer and for the target of the pig butchering scam. For an in depth look with multiple real stories of people who fell prey to pig butchering scams, check out this episode of Last Week Tonight with John Oliver.    

 

So how can you avoid becoming one of the stories featured in Last Week Tonight? Here are the red flags to look for right from the start. 

 

Red flags that you’re part of a pig butchering scam 

It’s important to understand the common steps and script followed by pig butchering scams so you can detect the scam before you get too drawn in. 

 

The first red flag is the “wrong number” text that we discussed above. This is how the scam typically starts. 

 

The second red flag is when a stranger you connected with online or via text starts talking about crypto. 

 

The third red flag is when the online stranger has either a lot in common with you or a couple specific commonalities that feel too good to be true. (For example, they’re from the same tiny remote village.) 

 

The fourth red flag is emotional manipulation. When someone begins using personal information about you, such as a family loss, to convince you to invest your money in a third-party platform they recommend, put your hackles up. 

 

The fifth red flag is when someone you’ve only met online tells you to download a crypto app. 

 

As we reviewed above, these fake crypto apps can appear trustworthy at first glance. The best advice is to never download an app that someone you’ve only met online suggests. You can also do thorough research on the app by checking community platforms like Reddit, running it through the Better Business Bureau Scam Tracker, and the FBI’s Internet Crime Complaint Center. If an app offers tiers with minimum investment amounts, that could also indicate a scam.  

 

If you do download an app and begin investing money, look out for an initial quick, small return on your investment. The scammer may also offer to trade with you to show you how the platform works. 

 

At first, the platform will probably allow you to withdraw small sums of money to ease any suspicions and encourage you to continue investing. When you attempt to withdraw a large sum, however, customer service will come up with excuses to refuse the withdrawal or demand a hefty fee or tax bill. 

 

Help! I think I’m the victim of a pig butchering scam

If you think you’ve fallen victim to a pig butchering scam, immediately stop investing money into the platform and report the scam to your bank, your local police, the Federal Trade Commission, the Commodity Futures Trading Commission, the U.S. Securities and Exchange Commission, and your state attorney general’s office. Unfortunately, if you have already invested, you will probably have to cut your losses. The nature of cryptocurrency makes it very hard to track and once your funds have been transferred to the scammer’s account, they’re typically lost for good. 

 

Make sure you don’t miss our next post in this two-part series, ‘How to Use Cryptocurrency Safely’ by subscribing to our weekly LinkedIn newsletter, IT Enlightenment for SMBs. 

 

Feature photo by Braňo on Unsplash

 

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