Pig Butchering Scams: How They Work and How to Avoid Them
Cyber threats are constantly evolving, and with the world more digitally connected than ever before, phishing scams are proving more and more effective.
Pig butchering, a type of financial fraud scam named after the farming practice of fattening livestock before slaughter. This metaphor emphasizes the gradual process of luring victims into what appears to be a legitimate investment before suddenly disappearing.
How the Scam Works
Pig butchering scams are typically triggered by a deceptive “wrong number” text where scammers send a text message to a random phone number with an incorrect name, asking for a favor or providing an update on a situation. The hope is that the victim will respond by saying it’s a wrong number, allowing the scammer to strike up a conversation.
What makes pig butchering scams so effective is that scammers spend a lot of time communicating with the victim. These scammers often establish trust and develop friendships before branching off into two directions with the victim – romance and/or investments.
- Romance – With this approach, the scammer builds a romantic connection with the victim and then fakes an emergency asking for money to cover costs. These requests can recur over a long period with smaller amounts that don’t immediately raise suspicions. This scam most often targets older people who are more likely to live alone and long for company. However, romance scams have proven to also be effective on young people as well.
- Investments – This approach is very effective for all ages and is often combined with the romance approach. After establishing the relationship, the scammer begins to steer conversations toward financial topics. Specific approaches here vary, but the general idea is that the scammer carefully presents the victim with an opportunity to make a profitable investment. This could be something traditional like stocks, bonds, cryptocurrency, or other investment options.
At this stage, the victim often becomes alarmed and suspects fraud; however, the scammer is quick to reassure the legitimacy of the investment. The scammer may even present fake screenshots or documentation showing an initial (also fake) return on the investment, before then asking the victim to contribute even more money.
Warning Signs and How to Avoid Pig Butchering Scams
- Unsolicited Messages: Avoid and be skeptical of unexpected messages from unknown numbers or social media accounts, especially those involving investments.
- Requests for Personal Information: Never share your sensitive information, especially passwords, credit or debit card numbers, banking PINs, secure access codes, etc. with anyone.
- Too-Good-to-Be-True Investments: Claims of guaranteed high returns with little or no risk are red flags. If it sounds too good to be true, it probably is.
- High-Pressure Tactics: Legitimate investment opportunities rarely require rushed decisions so be cautious if you're pressured to act fast.
- Unregistered Investment Platforms: Check if investment websites or apps are registered with official regulators.
- Difficulty Withdrawing Funds: Be suspicious if you can’t easily cash out your supposed investment returns.
- Inconsistent or Vague Details: Watch out for contradictory information or a need for concrete specifics about the supposed investment.
- Impromptu Investment Opportunities: Take the time to verify their legitimacy and seek advice from financial advisors.
- Persistent Attempts to Isolate You: Scammers may try to monopolize your attention and distract you from loved ones. This is a major red flag.
Pig butchering scams are a sophisticated form of financial fraud that exploits victims' emotions and economic vulnerabilities. By understanding how these scams work and recognizing the warning signs, individuals can better protect themselves from falling victim. Remember to always be skeptical when people you’ve never met ask you for money.
If targeted, we encourage you to report the incident to local law enforcement immediately. This not only helps in your own recovery but also aids in the prevention of further fraud.
For more on how to protect yourself and you finances, check out our fraud resources.
Have questions about scams? Please let us know.