Pig Butchering Scams and the Dangers of Trusting People

Sha Zhu Pan or Pig Butchering, typically involves crypto but can be done with other financial assets, too. It has similarities with crypto romance scams but is a broader strategy. Scammers usually create fake accounts and contact people in different contexts through online platforms. That can be through dating apps, messaging apps, and social networking sites. Pig Butchering scammers usually use well-thought, detailed strategies adjusted for each target’s demographics, preferences, and any kind of  information they can find online. The well-prepared group of scammers usually have instructions on how to start and hold communications. 

There are leaked photos revealing manuals that scam leaders provided operators with on different websites and forums. A Reddit user shared one of the training materials that  is 80 pages long which gives detailed instructions on how to create an attractive fake account, how to start a chat, and how to manipulate people into trusting them. It gives ready-to-use scripts and hints about what to do in different situations, how to seem realistic and reliable, what views to have about relationships, what hobbies to have, and other details. The manual also has a section on how to avoid video chats, saying: 

According to instructions, scammers talk about topics relevant to targets, showing understanding, and building trust, and get to the decisive 3rd chapter, when they mention making extra money in their free time. The criminals tell stories about making impressive profits, later sending photos “taken” in luxury restaurants or some expensive purchases. Eventually, the victim asks how to make money themselves, and at this point, the scammer directs them to a fraudulent website or app that is usually hard to distinguish from a real one. Perhaps, you guessed the rest: the scammer guides how to make an investment, sharing some market recommendations and pursuing the target to invest as much money as possible. Achieving their goal, the “online friend” disappears. 

This is one of the techniques. Pig butchering scams take various forms: from obvious to spot-on to cunny and unexpected. Scammers can set up fake accounts on job portals with impressive work backgrounds, connect to people, and start discussing their “common field.” In this case, they may offer to move the conversation to another platform and proceed with their story of making extra money. 

Pig butchering scams take a toll on victims both financially and emotionally. Because fraud cases can take from weeks to months, it comes as a huge disappointment for the victims to know they were deceived for so long. 

In one case, a woman from Ohio lost nearly $1M, her entire retirement savings of 40 years, in just 3 weeks. One day, she received a message on WeChat from someone named Vincent. The soon to be victim seemed curious and replied thinking it could be her husband’s cousin who lives in another state. Vincent said he connected with the woman by mistake and started a friendly conversation. As Lynn’s husband told local media, at one point Vincent started to talk about his investments, and sent screenshots of profitable trades. 

Next on, he said he could help the woman make money too, and suggested starting with $10,000. Lynn agreed and indeed received her money back with profit. Vincent convinced Lynn to make bigger investments, saying the more she invests the higher returns she’ll get. So, the woman continued investing until one day she received a message on the fake platform that her money was locked up and the platform was under investigation. According to the notification, Lynn needed to pay around $3 M to unlock her account. Vincent offered to pay half, suggested she sell her house or get a loan. Lynn then realized she had been scammed. When she refused to pay, Vincent disappeared, leaving the victim devastated. 

There’s another side to pig butchering scams involving forced involvement in crimes. The United Nations reports that pig butchering and other types of digital scams are linked to human trafficking, and in many cases, operators sending the messages are actually forced to do so. At first, the criminals offer them high-paying jobs, assist with the process of arriving in another country. Once there, the victims are taken to a gated area, where they are forced to engage in gambling scams, pig butchering, and other criminal activities. The UN mentions that the information is based on research by the UN Human Rights Office, including victim testimony, reports from other UN entities, and open-source information. According to the research, more than 120,000 people in Myanmar and 100,000 in Cambodia have been forced to work in scam operations.

One of the victims, who managed to get out of slavery by texting authorities, spoke about the cruel treatment he and other victims of trafficking faced. He told CBC that he was held captive in Sihanoukville, Cambodia for 4 months, being forced to talk to strangers online, gain their trust and convince them to make dubious investments. John (not the real name) from Malaysia went to Cambodia to start a new job, with the employer covering all expenses of transportation. Arriving in the country, he was locked into a compound with his passport confiscated. John said he was expected to start talking to 15 victims. Bosses threatened those who didn't meet the requirements or who tried to escape.

According to a Time article, around $75 billion was stolen from more than 4,000 victims from January 2020 to February 2024 worldwide in pig butchering scams. Investigations using blockchain tracing tools have revealed that large criminal organizations, mainly based in Southeast Asia, are behind these scams. 

In May 2024, the US authorities arrested two Chinese nationals for laundering $73 M generated from pig butchering scams. The press release of the US Department of Justice stated that although crypto investment scams have a borderless nature and digital assets possess certain anonymity, they are not beyond the law’s reach. 

In July, the German police intercepted a $162 M scam with the help of Chainalysis and international collaboration under Operation Spincaster. They seized money stolen from 186 victims and closed the fake accounts. 

The first thing to keep in mind is that scams and fraud can happen to anyone, and it doesn't depend on how smart you are. When reading stories, first you may think: "There's no way this will happen to me." Maybe you're right but underestimating the dangers of pig butchering scams is risky because they can be tricky and take various forms. Always be cautious with messages and calls from people you don't know, and be skeptical if a person you haven't talked to for a long time suddenly texts you. Check if the account is legitimate. If you're a public person or you like sharing information about yourself on social media, take into account that scammers may use that information, presenting themselves as someone you have common interests with. And, of course, be extra cautious with anything related to money and investments, no matter how friendly and convincing a person may sound.