What are 'Pig Butchering' Scams?

'Pig butchering' scams are a new variation of online fraud schemes that originated in China. These scams typically involve cryptocurrency schemes or other types of financial trading.

• Scammers contact victims through SMS, social media, dating apps, or communication platforms.
• They build rapport with victims and introduce the idea of making money through cryptocurrency investing.
• Victims are lured into malicious apps/websites that mimic legitimate financial platforms.
• Once victims deposit money, scammers let them see their "investments" grow before disappearing with the funds.

Human Trafficking and Forced Labor Involved

Crime syndicates in China developed scripts and playbooks for these scams, allowing them to offload the work onto inexperienced scammers or even victims of human trafficking forced into labor.

• Scammers move their operations to Southeast Asian countries like Cambodia, Laos, Malaysia, and Indonesia.
• Victims of human trafficking are forced to carry out these scams, adding another layer of trauma.
• Researchers emphasize the need to disrupt the demand for these forced labor practices.

Scale and Impact of 'Pig Butchering' Scams

These scams have been operating at a massive scale, generating billions of dollars for criminals and causing significant financial and psychological harm to victims.

• In 2021, the FBI received over 4,300 reports related to 'pig butchering' scams, totaling $429 million in losses.
• The US Department of Justice seized seven domain names used in these scams in 2022.
• Victims often suffer emotional trauma in addition to financial losses.

Role of Social Engineering and Tactics Used

'Pig butchering' scams rely heavily on social engineering tactics to manipulate and exploit victims.

• Scammers build trust and rapport with victims over time, often posing as successful traders.
• They use curated real-time market data and allow small withdrawals to add credibility.
• Scammers target vulnerable individuals, such as those with health problems or feelings of isolation.

Efforts to Combat 'Pig Butchering' Scams

Governments and law enforcement agencies are taking measures to address these scams, including public awareness campaigns and crackdowns on criminal operations.

• The Chinese government cracked down on cryptocurrency scams in 2021, leading to a shift in operations.
• The FBI and other agencies have issued warnings about the threat of 'pig butchering' scams.
• Public education is crucial to help people recognize the telltale signs and avoid falling victim.

Importance of Awareness and Vigilance

Researchers and officials emphasize the need for increased awareness and vigilance to combat these scams, which exploit human vulnerabilities and rely on forced labor practices.

• Victims should be cautious of unsolicited communications offering financial opportunities.
• Verifying the legitimacy of investment platforms and opportunities is essential.
• Sharing information about these scams within social circles can help protect others.