Unmasking 'Pig Butchering' Scams

Mr. Shrey Madaan
Mr. Shrey Madaan
Research Associate, CyberPeace Foundation
PUBLISHED ON
Jan 29, 2024
10

Introduction

In the face of escalating cybercrimes in India, criminals are adopting increasingly inventive methods to deceive victims. Imagine opening your phone to the notification of an incoming message from a stranger with a friendly introduction - a beginning that appears harmless, but is the beginning of an awful financial nightmare. "Pig Butchering '' scam—an increasingly sophisticated form of deception that's gaining more widespread popularity. Unlike any other scams, this one plays a long game, spinning a web of trust before it strikes. It's a modern-day financial thriller happening in the real world, with real victims. "pig butchering" scam, involves building trust through fake profiles and manipulating victims emotionally to extort money. The scale of such scams has raised concerns, emphasising the need for awareness and vigilance in the face of evolving cyber threats.

How does 'Pig Butchering' Scam Work? 

At its core, the scam starts innocuously, often with a stranger reaching out via text, social media, or apps like WhatsApp or WeChat. The scammer, hiding behind a well-crafted and realistic online persona, seeks to forge a connection. This could be under the pretence of friendship or romance, employing fake photos and stories to seem authentic. Gradually, the scammer builds a rapport, engaging in personal and often non-financial conversations. They may portray themselves as a widow, single parent, or even a military member to evoke empathy and trust. Over time, this connection pivots to investment opportunities, with the scammer presenting lucrative tips or suggestions in stocks or cryptocurrencies. Initially, modest investments are encouraged, and falsified returns are shown to lure in larger sums. Often, the scammer claims affiliation with a profitable financial institution or success in cryptocurrency trading. They direct victims to specific, usually fraudulent, trading platforms under their control. The scam reaches its peak when significant investments are made, only for the scammer to manipulate the situation, block access to the trading platform, or vanish, leaving the victim with substantial losses. 

Real-Life Examples and Global Reach

These scams are not confined to one region. In India, for instance, scammers use emotional manipulation, often starting with a WhatsApp message from an unknown, attractive individual. They pose as professionals offering part-time jobs, leading victims through tasks that escalate in investment and complexity. These usually culminate in cryptocurrency investments, with victims unable to withdraw their funds, the money often traced to accounts in Dubai. 

In the West, several cases highlight the scam's emotional and financial toll: A Michigan woman was lured by an online boyfriend claiming to make money from gold trading. She invested through a fake brokerage, losing money while being emotionally entangled. A Canadian man named Sajid Ikram lost nearly $400,000 in a similar scam, initially misled by a small successful withdrawal. In California, a man lost $440,000, succumbing to pressure to invest more, including retirement savings and borrowed money. A Maryland victim faced continuous demands from scammers, losing almost $1.4 million in hopes of recovering previous losses. A notable case involved US authorities seizing about $9 million in cryptocurrency linked to a global pig butchering scam, showcasing its extensive reach. 

Safeguarding Against Such Scams 

Vigilance is crucial to prevent falling victim to these scams. Be skeptical of unsolicited contacts and wary of investment advice from strangers. Conduct thorough research before any financial engagement, particularly on unfamiliar platforms. Indian Cyber Crime Coordination Center warns of red flags like sudden large virtual currency transactions, interest in high-return investments mentioned by new online contacts, and atypical customer behaviour. 

Victims should report incidents to various Indian and foreign websites and the Securities Exchange Commission. Financial institutions are advised to report suspicious activities related to these scams. In essence, the pig butchering scam is a cunning blend of emotional manipulation and financial fraud. Staying informed and cautious is key to avoiding these sophisticated traps.

Conclusion

The Pig Butchering Scams are one of the many new breeds of emerging cyber scams that have become a bone of contention for cyber security organisations. It is imperative for netizens to stay vigilant and well-informed about the dynamics of cyberspace and emerging cyber crimes. 

References 

  1. https://www.sentinelassam.com/more-news/national-news/from-impersonating-cbi-officers-to-pig-butchering-cyber-criminals-get-creative
  2. https://hiindia.com/from-impersonating-cbi-officers-to-pig-butchering-cyber-criminals-get-creative/



PUBLISHED ON
Jan 29, 2024
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