What is “pig-butchering”? Scam trend costs Americans millions

A massive bust in New York is making national headlines this month. Prosecutors in Brooklyn seized nearly two dozen web domains associated with a scheme known as “pig butchering.”

But what is “pig butchering?”

In short, it’s when scammers strike up online conversations with unsuspecting victims, gain their trust, and then manipulate them into making bogus cryptocurrency investments.

The idea is that the scammer fattens up the target then takes them to “slaughter” because the amount of money lost in the scam is so great.

In 2023, more than $1.4 billion in cryptocurrency was lost in scams according to the Federal Trade Commission.

Crypto is a hallmark of “pig-butchering” schemes, but they can incorporate other types of financial trading as well.

The scams can work in a few different ways.

Often a person claiming to be an investment manager contacts the target out of the blue with big promises to grow their money.

Sometimes the scammer makes first contact posing as a potential love interest.

In any scenario, the scammer builds rapport and trust with the target. Then they convince the person to invest. The scammer gets the target set up with a malicious app or web platform – some of these even impersonate legitimate financial institutions.

The investments appear to show big returns, and will sometimes allow the victim to withdraw small sums to help appear legitimate and garner trust in the investments.

The scammers will use elaborate storylines to ‘fatten up’ the victims and convince them to invest more and more – sometimes their entire life savings. When the attackers believe they’ve gotten the target to deposit all they can, or if a target tries to withdraw a large sum, the victim is blocked from their account. The scammers take the money, often shut down the account, and disappear.

Victims have reported losing hundreds of thousands of dollars. In the New York case, the Brooklyn District Attorney’s Office says victims were scammed out of at least $5 million.

The best way to protect yourself and loved ones from this type of scam is education to spot the warning signs.

Some red flags include getting a “wrong message” text from a stranger. They may try to strike up a conversation talking about how much money they’ve made from a cryptocurrency investment. Potential victims are often added to group chats on WhatsApp or Telegram or receive messages through Facebook.

Be skeptical of any promise to get rich quickly.

Avoid downloading investment apps from unverified crypto investment websites.

Don’t share any personal information with strangers.

Before making a big investment or financial change, speak to someone you trust. Especially if something seems suspicious.

If you think you’ve been a victim of “pig butchering” or another financial scam – report it! Call your local law enforcement or file a complaint with the Arizona Attorney General’s Office. You can file a complaint online, or by phone at (602) 542-8888.

If you believe you have been the victim of identity theft, contact the Federal Trade Commission on their website or call them at (877)-438-4338 for help.