Imagine getting a random text from an unknown number that says: “My dog needs to see a vet right away. Can you help me?” Would you reply to tell them they have the wrong number? Would you ignore it? What do you think most people would do?
Scammers use messages like this to trick people. It’s part of a scam called “Pig Butchering.” Recently, victims of this scam lost $429 million, according to the Internet Crime Complaint Center’s report on online safety.
What is the Pig Butchering scam?
Pig Butchering is a scam where scammers pretend to be friendly and build a relationship with their victim over days or weeks. They act like they are financially successful and eventually encourage the victim to invest in cryptocurrency. Then, they convince the victim to transfer their crypto to a fake website that the scammer controls.
This scam works because the scammer builds trust with the victim. Many victims think of the scammer as a friend. The scammer often pretends to be a young, attractive person to gain trust.
Once the relationship feels strong, the scammer brings up money, claiming their success is thanks to crypto. They guide the victim to buy crypto from a real site but persuade them to move the funds to the fake site. The victim sees fake “profits” on this site, which encourages them to keep investing.
When the victim tries to withdraw their money, they are faced with fake fees, taxes, and other obstacles that cost more money. These roadblocks continue until the victim realizes they’ve been scammed. By then, the scammer has disappeared, often with a huge amount of money—sometimes millions.
Who are the targets for Pig Butchering?
Scammers usually reach their targets through text messages, Facebook, LinkedIn, WhatsApp, or Tinder. They often go after high-earning individuals, empty nesters, or middle-aged people who might seem lonely. These people may be more open to building a new relationship, which is exactly what the scammer wants.
The ideal target is a professional who doesn’t know much about cryptocurrency or is only slightly familiar with it. They might feel like they missed their chance to invest when crypto was popular but are now interested in the idea of making money from it.
Where does the name Pig Butchering come from?
The name “Pig Butchering” comes from the idea of fattening up a pig before slaughter. In this scam, scammers try to take as much money as possible from victims before they realize they’re being tricked.
The scam began when cryptocurrency was gaining popularity. Now that crypto values are dropping, scammers convince victims they can make money by short-selling crypto—selling it before the price goes down.
Robert McMillan, a writer for The Wall Street Journal, explains that this scam isn’t limited to crypto. Scammers use the same method with stocks or by tricking people into sending gift cards or wiring money to “help” them.
At its core, Pig Butchering is a type of romance scam or confidence scam, which has been around for a long time. The focus on crypto is just a new twist because crypto transactions are quick and easy.
How can I avoid being a victim of Pig Butchering?
We all like to think we’re too smart to get scammed, but the truth is, anyone can be a victim. The good news is there are ways to protect yourself. Here are some tips to stay safe:
- Don’t take investment advice from people you meet online.
- If someone offers an “exclusive” investment and says you need to act fast, it’s probably a scam.
- Be cautious of people who contact you out of the blue.
- Never discuss your financial situation with strangers online.
- If an investment promises unusually high returns or seems too good to be true, it probably is.
- Never share your banking information, Social Security number, or other sensitive details with anyone online unless you are sure they are legitimate.
These steps can help you avoid falling for scams and keep your money safe.
What to do if you’ve been a victim of Pig Butchering?
If you’ve been affected by this type of scam, there is help available. Organizations like the Global Anti-Scam Org and Solidus Labs offer support and resources for victims. You can also report the scam by filing a complaint with the FBI’s Internet Crime Complaint Center.