The new crypto scam known as Pig butchering

Scammers are becoming far more patient and persistent and are spending weeks and months ‘fattening’ their prey as they gain their confidence. Then comes the ‘butchering’ as the unwary victim is finally coaxed into making an investment that disappears.

As ever more bad actors are drawn into the cryptocurrency space, the ways of relieving vulnerable or even sometimes quite savvy individuals of their wealth are multiplying and are becoming much harder to spot.

One of these types of scams has recently hit the headlines and has been coined ‘pig butchering’ due to the process of ‘fattening up’ the victim over sometimes what is quite a long period of time, before introducing the ‘butchering’ after the victim has been lulled into trusting their contact and finally invests a sizeable amount, which then disappears along with the contact.

Typically, the process would begin as the fraudster trawls through social media looking for that ‘chance’ encounter with a likely victim that they can develop into a relationship that grows slowly.

Often the relationship is a romance, where the con artist takes on the role of a young lady from Asia perhaps who just can’t seem to be lucky in love. Or perhaps it’s a handsome man who acts like a real gentleman and who never mentions money… until that one time when all the victim’s guards are down.

South East Asia is actually where this scam is said to have originated from, and the perpetrators have refined their art to a high degree. 

After what can be a long and drawn out grooming process the scammer finally guides the victim into a conversation about cryptocurrencies and how certain investments can attract a decent return.

Often, the scammer will allow their prey to even start earning a small amount of return. This is in order to quell any last lingering doubts the victim might have. Then the final ‘butchering’ takes place as the victim is persuaded to invest a large amount into the website that the scammer has covert control over.

Once the pig has been butchered, all the money disappears, along with the romantic lover, and the next series of victims are earmarked.

According to a report by the Wall Street Journal, the number of complaints over this type of scam made to the Federal Trade Commission rose 70% from 2020 to 2021, resulting in around $547 million reportedly being lost by victims.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.