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What is a Pig-Butchering Scam?

If you’ve seen the news lately, you might have seen terminology along the lines of “pig-butchering scam.” While this may immediately bring to mind images of pigs being murdered falsely, this term is actually used to describe a much more nefarious scheme.

If you’re worried about being caught unaware by internet scams, then keep reading as we dive into all the nitty gritty details, and the sad truth of pig-butchering scams.

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What is a Pig Butchering Scam?

Despite the name, this term actually has nothing to do with ending the life of an animal. Rather it is used to refer to a long-term scam in which the fraudster spends time and money defrauding the victim of their cash.

The scam begins when a fraudster asks the victim to make a small donation to a cause, or a small investment into their firm. As time goes by, they ask for increasingly larger contributions until eventually disappearing with the victim’s money.

The name came from the idea that pigs are fattened little by little until they are killed by the butcher and consumed for their meat. In the same way, a pig-butchering scam involves little moves and asks of the perpetrator until they are eventually able to make away with thousands of dollars.

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Where Do Pig Butchering Scams Come From?

A pig butchering scam can be executed by anyone at any time, however, due to the time commitment (in comparison to other scams) most operators of pig butchering scams are on the continent of Asia, specifically in Cambodia. Many Cambodian casinos have closed in recent years(due to the COVID 19 pandemic), and the old building have been turned into scam operation centers.

It isn’t just Cambodia though, as Myanmar, Thailand, China, The Philippines, and Laos all have known groups which perpetuate these scams.

The earliest forms of these scams were found on dating apps, where perpetuators found it was easy to ask a few dollars of someone they were “dating.” Over the years though, these scams have expanded to all social media platforms, including Facebook and Instagram.

Many of these transactions request cryptocurrency for payment, but some also ask for US dollars—meaning there is no for sure way to spot this scam, though by knowing the steps, you can avoid being caught in one.

It’s important to note that pig-butchering scams are often executed on a large scale by individuals under coercion. Because they are executed on such a large scale the scammer may have access to some high level screenshots, technology, and maybe even a functioning app—making these scams increasingly difficult even for smart individuals to avoid.

Related: How to Identify Scam Stablecoins

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The Common Steps of a Pig Butchering Scam

Before we dive in, it’s important to note that no one of these is an automatic indication of a pig butchering scam. But, if you are conversing with someone online and you start to notice two or three of these steps, you might be a victim.

Step 1: Gain Trust

The fraudster will begin by gaining your trust. They likely won’t ask for any money during this stage—rather they will get to know you and give them details about themselves. Just know that any pictures they send are likely fake and many of them have been coached on how to convince you to fall in love with them. 

**This step can start with a seemingly innocuous text sent to the “wrong number.” Beware of any odd texts you received like “Hi is this Sam?”

Step 2: Ask for a Small Amount of Money

After chatting for a while, the fraudster will ask for a small denomination of money, such as $5. They may present an investment opportunity for you to invest in, or they might just say they are a bit short on cash and their card won’t work. Often times, the denomination is so small, the victim might just give it to be kind.

**They may not ask for money directly, but rather suggest you set up an account on an investment app they are familiar with. You will have your own account and it will LOOK legit.

Step 3: Asking for More Money

Once the initial investment is in, they’ll likely cool off for a bit before coming back and asking for more. They may have fake charts and graphs (if they are selling you on an investment) or they may have picture of a broken down car or house, asking for your help to get it repaired.

**The app you have signed up for may show positive investment results, causing you to invest more money on your own WITHOUT the perpetrators input which is what makes these scams so dangerous.

Step 4: Disappearing Act

The scammer may repeat step 3 several times, but eventually, they will disappear without a trace. The accounts you previously spoke to them through will disappear overnight, and you won’t be able to get a hold of them. The scam is now complete, and you are unfortunately left without your invested cash.

What Can You Do If You Are a Victim?

Sadly, becoming a victim of a pig-butchering scam is becoming all too common. If you find yourself a victim, the first thing you need to do is contact your local government. In the United States there is a specific bureau that investigates these crimes. If you are the first victim, nothing may happen immediately, but if you are one of many victims, there is a chance the government is already investigating your case and may be able to return your funds.

Additionally, you can report the lost money to the IRS when you file taxes to ensure you don’t owe taxes over the money you have lost.

Recently, the FBI was able to reclaim millions of dollars from perpetrators of one particular pig-butchering scam. So, if you are a victim, don’t give up hope as you may one day get your money back—that day may just not be tomorrow.

Overall, pig-butchering scams are a new high-level social scam that has arisen in the past few years. It can be difficult to sniff out a pig butchering scam, as the perpetrators are in it for the long run and may have access to high-tech aids for perpetuating their scheme. But once they disappear with your money, you are definitely a victim, so don’t hesitate to contact officials in your country to see about getting your money back.

Above all else, remember that if someone approaches you with an investment opportunity that sounds too good to be true—it 100% is.

Related: How to Avoid Social Media Fake Crypto Scams

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