pig butchering scam

{{Chinese

| order = st

| s = 杀猪盘

| t = 殺豬盤

| p = Shā zhū pán

| l = Killing pig game{{cite web|url=https://www.tn.gov/commerce/blog/2024/1/31/what-is-a-pig-butchering-scam.html|title=What is a 'pig-butchering' Scam?|publisher=Tennessee Department of Commerce and Insurance|access-date=2024-07-25|archive-date=2024-07-26|archive-url=https://web.archive.org/web/20240726211004/https://www.tn.gov/commerce/blog/2024/1/31/what-is-a-pig-butchering-scam.html|url-status=live}}

}}

A pig butchering scam (in Chinese sha zhu panWang, Fangzhou. or shazhupan,{{cite web|last1=Santiago|first1=Jan|last2=Camba|first2=Alvin|url=https://thediplomat.com/2024/02/why-the-us-and-china-should-work-together-to-solve-the-global-scam-crisis/|title=Why the US and China Should Work Together to Solve the Global Scam Crisis|magazine=The Diplomat|date=2024-02-15|access-date=2024-07-20|archive-date=2024-07-20|archive-url=https://web.archive.org/web/20240720214439/https://thediplomat.com/2024/02/why-the-us-and-china-should-work-together-to-solve-the-global-scam-crisis/|url-status=live}} ({{zh |s = 杀猪盘 }}), translated as killing pig game) is a type of long-term scam, which usually, but not always, combines the various forms of catfishing, romance scams and investment frauds, in which the victim is gradually lured into making increasing contributions, usually in the form of cryptocurrency, to a fraudulent cryptocurrency scheme. Such scams are commonplace on social media and dating apps. The scammer builds trust with the victim through online communication, subsequently persuading them to invest in a fraudulent cryptocurrency scheme. The "butchering" or "slaughtering" of the victim transpires when their assets or funds are stolen.{{Cite web |date=2024-03-13 |title=District of Massachusetts {{!}} United States Files Forfeiture Action to Recover Cryptocurrency Traceable to Pig Butchering Romance Scam {{!}} United States Department of Justice |url=https://www.justice.gov/usao-ma/pr/united-states-files-forfeiture-action-recover-cryptocurrency-traceable-pig-butchering |access-date=2024-04-28 |website=www.justice.gov |language=en |archive-date=2024-04-28 |archive-url=https://web.archive.org/web/20240428051722/https://www.justice.gov/usao-ma/pr/united-states-files-forfeiture-action-recover-cryptocurrency-traceable-pig-butchering |url-status=live }} Perpetrators are typically victims of a fraud factory, where they are lured to travel internationally under false pretenses, trafficked to another location, and forced to commit the fraud by organised crime gangs.{{Cite web |title=The involuntary criminals behind pig-butchering scams |url=https://www.technologyreview.com/2023/08/30/1078663/pig-butchering-scam-human-trafficking/ |access-date=2024-01-29 |website=MIT Technology Review |language=en |archive-date=2024-04-30 |archive-url=https://web.archive.org/web/20240430140919/https://www.technologyreview.com/2023/08/30/1078663/pig-butchering-scam-human-trafficking/ |url-status=live }}{{cite journal|last=Wang|first=Fangzhou|title=Victim-offender overlap: the identity transformations experienced by trafficked Chinese workers escaping from pig-butchering scam syndicate|journal=Trends in Organized Crime|year=2024|doi=10.1007/s12117-024-09525-5|via=Springer Link}}

Scams can be detected using simple precautions. Contact begins with random, unsolicited accidental missed calls with extended, repeated contact, seemingly fake profiles on dating apps, or romantic interest from strangers, all with requests for personal information. After gaining the victim’s trust, the scammer offers guaranteed too-good-to-be-true high return trades or investments which require the use of genuine-looking but fraudulent websites or apps with progressively-escalating minimum investment thresholds that also display fake profits. The scammer pressures the victim to invest quickly (legitimate opportunities rarely require rushed decisions), offers extravagant gifts which require the release of money, claims difficulties in withdrawing funds from supposed investment returns, and offers inconsistent or vague details such as contradictory information or a lack of concrete specifics about the supposed investment. These tactics are persistent attempts to isolate the victim by monopolizing their attention away from loved ones so that they have difficulty alerting and convincing the victim they are falling prey to a scam.[https://www.techtarget.com/whatis/feature/Pig-butchering-scam-explained-Everything-you-need-to-know Pig butchering scam explained: Everything you need to know], 13 Jan 2025.[https://www.investopedia.com/pig-butchering-scams-8605501 Pig Butchering Scams: What They Are, Warning Signs, and How to Avoid Them], Investopedia, 26 March 2024.

To avoid being scammed, conduct due diligence and verify the identity of the fake persona, such as by asking for legitimate LinkedIn and Facebook accounts. To avoid being detected, scammers also often avoid giving out their WhatsApp number, and prefer apps where their phone number is hidden such as Telegram or WeChat. Many scammers obtain their own WhatsApp-linked fraudulent phone number through a burner phone, virtual number, phone number mule, or caller ID spoofing, and then avoid videocall verification. Potential victims should insist on multiple, long videocalls to verify the identity of the potential scammer, confirm the identity of mentioned companies with registration and regulatory bodies, never invest in any scheme through people met online but not in person, cut off contact with potential scammers and their platforms, and alert local, state, or federal authorities and your loved ones.

In 2024, crypto fraud was estimated to have had a value of US$12.4 billion, of which high-yield investment program (HYIP) scams and pig butchering scams contributed 50.2% and 33.2% respectively, with pig butchering scams growing at the rapid rate of 40% over the previous year.[https://www.chainalysis.com/blog/2024-pig-butchering-scam-revenue-grows-yoy/ Crypto Scam Revenue 2024: Pig Butchering Grows Nearly 40% YoY as Fraud Industry Leverages AI and Increases in Sophistication.], chainalysis.com, 13 Feb 2025. In October 2023, 12% of Americans using dating apps experienced exposure to this type of fraud, up from 5% in 2018. The scam originated in China in 2016 or earlier, and proliferated in Southeast Asia amid the COVID-19 pandemic.

History

File:Shwe Kokko Scam City, Myawaddy, Myanmar.jpg, Myanmar, where perpetrators of pig-butchering scams are held against their will]]

Pig-butchering scams originated in 2016 or earlier as a regional scam in China, originally finding their victims on same-sex dating sites before expanding to opposite-sex dating sites as well. The term "pig butchering" arises from an analogy comparing the initial phase of gaining the victims' trust to the fattening of pigs before slaughtering them.

The modus operandi later spread throughout Southeast Asia at the height of the COVID-19 pandemic. In Sihanoukville, Cambodia—once a prosperous gambling town—many local gambling gangs transformed casinos into scam operation centers performing pig-butchering scams. This was likely a result of a lack of casino attendance on account of the COVID-19 pandemic and the Cambodian government cracking down on commercial gambling.{{Cite web |last=Podkul |first=Cezary |title=Human Trafficking's Newest Abuse: Forcing Victims Into Cyberscamming |date=13 September 2022 |url=https://www.propublica.org/article/human-traffickers-force-victims-into-cyberscamming |access-date=2 March 2024 |archive-date=27 May 2024 |archive-url=https://web.archive.org/web/20240527211118/https://www.propublica.org/article/human-traffickers-force-victims-into-cyberscamming |url-status=live }} Many operations are also run from areas of Myanmar which are outside central government control because of

the ongoing civil war, with one important hub being the town of Myawaddy in Kayin State, near the border with Thailand. According to the UN Human Rights Office, hundreds of thousands of people have been trafficked and are trapped in scam centres in Cambodia and Myanmar, with other operations being run from Laos, the Philippines and Thailand.{{Cite web |date=29 August 2023 |title='Hundreds of thousands' trafficked into SE Asia scam centres - UN |url=https://www.reuters.com/world/asia-pacific/hundreds-thousands-trafficked-into-se-asia-scam-centres-un-2023-08-29/ |access-date=30 June 2024 |website=Reuters |archive-date=11 December 2023 |archive-url=https://web.archive.org/web/20231211010119/https://www.reuters.com/world/asia-pacific/hundreds-thousands-trafficked-into-se-asia-scam-centres-un-2023-08-29/ |url-status=live }} Many of the groups that run pig-butchering scams are overseas Chinese criminal syndicates based in Southeast Asia, who traffic ethnic Chinese and others into fraud factories and force these people to commit the fraud.{{Cite news |last1=Qian |first1=Isabelle |last2=Robles |first2=Pablo |date=2023-12-17 |title=7 Months Inside an Online Scam Labor Camp |url=https://www.nytimes.com/interactive/2023/12/17/world/asia/myanmar-cyber-scam.html |access-date=2023-12-17 |work=The New York Times |language=en-US |issn=0362-4331 |archive-date=2024-04-13 |archive-url=https://web.archive.org/web/20240413020821/https://www.nytimes.com/interactive/2023/12/17/world/asia/myanmar-cyber-scam.html |url-status=live }}

Pig-butchering scams gained international momentum through the exploitation of online dating apps and social media platforms.[https://news.sophos.com/en-us/2024/02/02/cryptocurrency-scams-metastasize-into-new-forms/ Cryptocurrency scams metastasize into new forms] {{Webarchive|url=https://web.archive.org/web/20240226053004/https://news.sophos.com/en-us/2024/02/02/cryptocurrency-scams-metastasize-into-new-forms/ |date=2024-02-26 }} Sophos News Scammers crafted elaborate fake identities to establish romantic or emotional connections with victims, thus marking a departure from conventional financial scams by integrating psychological manipulation. This early phase of these scams primarily targeted local populations but quickly expanded as digital connectivity grew.

The scams evolved significantly with the integration of sophisticated techniques, including the creation of fake online investment platforms and the use of social engineering. A key aspect of this evolution was the use of cryptocurrency for transactions, which appealed to scammers due to its difficulty to trace and recover. The scams' globalization can be attributed to the increased ubiquity of digital interactions and the rising popularity of cryptocurrencies, which provided a new avenue for such fraudulent activities on a global scale.

= Notable cases of pig butchering =

The 2023 failure of Heartland Tri-State Bank in Elkhart, Kansas, United States, was directly tied to a pig-butchering scam; CEO Shan Hanes was discovered to have embezzled $47 million from the bank in an attempt to secure his presumed funds. Hanes was charged in federal court with embezzlement in February 2024 and pleaded guilty in May 2024.{{cite web |title=Material Loss Review of Heartland Tri-State Bank |url=https://oig.federalreserve.gov/reports/board-material-loss-review-heartland-tri-state-bank-feb2024.pdf |publisher=Board of Governors of the Federal Reserve System |access-date=11 June 2024}}{{cite web |last1=Bailey |first1=Sam |title='Huge scam' in rural Kansas town fells fourth U.S. bank in 2023 |url=https://kansasreflector.com/2023/08/11/huge-scam-in-rural-kansas-town-fells-fourth-u-s-bank-in-2023/ |website=Kansas Reflector |date=11 August 2023 |access-date=11 June 2024 |archive-date=11 June 2024 |archive-url=https://web.archive.org/web/20240611131608/https://kansasreflector.com/2023/08/11/huge-scam-in-rural-kansas-town-fells-fourth-u-s-bank-in-2023/ |url-status=live }}{{cite web |last1=Saulsbery |first1=Gabrielle |title=Ex-Heartland Tri-State CEO charged with embezzling $47M in crypto |url=https://www.bankingdive.com/news/ex-heartland-tri-state-ceo-shan-hanes-charged-embezzling-47m-crypto-kansas-bank-failure/706992/ |website=Banking Dive |access-date=11 June 2024 |archive-date=11 June 2024 |archive-url=https://web.archive.org/web/20240611131617/https://www.bankingdive.com/news/ex-heartland-tri-state-ceo-shan-hanes-charged-embezzling-47m-crypto-kansas-bank-failure/706992/ |url-status=live }}{{cite web |last1=Alatidd |first1=Jason |title=After Kansas bank collapsed, former CEO admits to embezzling $47 million for crypto scheme |url=https://www.cjonline.com/story/news/crime/2024/05/28/kansas-bank-ceo-embezzled-millions-in-crypto-scheme-that-killed-bank/73843999007/ |website=The Topeka Capital Journal |access-date=11 June 2024 |archive-date=11 June 2024 |archive-url=https://web.archive.org/web/20240611131608/https://www.cjonline.com/story/news/crime/2024/05/28/kansas-bank-ceo-embezzled-millions-in-crypto-scheme-that-killed-bank/73843999007/ |url-status=live }} He was later sentenced to 24 years in prison.{{cite web|url=https://www.nbcnews.com/business/business-news/cryptocurrency-pig-butchering-scam-wrecks-kansas-bank-sends-ex-ceo-pri-rcna167642|title=Cryptocurrency 'pig butchering' scam wrecks Kansas bank, sends ex-CEO to prison for 24 years|author=Dan Mangan|date=Aug 21, 2024|publisher=CNBC|access-date=August 22, 2024|archive-date=August 22, 2024|archive-url=https://web.archive.org/web/20240822043604/https://www.nbcnews.com/business/business-news/cryptocurrency-pig-butchering-scam-wrecks-kansas-bank-sends-ex-ceo-pri-rcna167642|url-status=live}}

Implementation

Pig-butchering scams involve a series of meticulously planned steps to deceive and exploit victims, typically focusing on cryptocurrency investment fraud.{{Unreliable source?|reason=Possibly machine-generated text, cited website has no human author attributed, only a corporate author |date=April 2025}}

Gaining trust: Scams often begin with casual conversations initiated by the scammer, who may pretend to have received the victim's contact details accidentally or through a mutual acquaintance. These initial interactions are designed to build trust and may involve the use of attractive profile images to lure victims.
Introducing the investment: As trust is established, the scammer introduces the victim to a fraudulent investment scheme, promising significant returns in a short period. The scammers use persuasive tactics and counterfeit investment portfolios to convince victims of the scheme's legitimacy.
Collecting money: After persuading the victim to invest, scammers collect funds, often through digital payment platforms or cryptocurrencies, to complicate tracking and tracing of the transactions.
Disappearance of the scammer: Once a substantial amount has been collected, or when victims attempt to withdraw funds, scammers become unreachable, delete their online presence, or create new identities, leaving the victims with no way to recover their funds.

Furthermore, the scammers develop fake brokerage websites and mobile applications to add legitimacy to their scheme, making it difficult for victims to distinguish them from genuine platforms.

Countermeasures

The IRS has issued warnings about the rising prevalence of these scams, particularly targeting U.S. taxpayers. The agency notes that losses often reach hundreds of thousands of dollars, with some victims losing as much as $2 million.{{Cite web |title=CI issues red flags, tips to avoid falling victim to pig-butchering schemes during International Fraud Awareness Week {{!}} Internal Revenue Service |url=https://www.irs.gov/compliance/criminal-investigation/ci-issues-red-flags-tips-to-avoid-falling-victim-to-pig-butchering-schemes-during-international-fraud-awareness-week |url-status=dead |archive-url=https://web.archive.org/web/20241005152526/https://www.irs.gov/compliance/criminal-investigation/ci-issues-red-flags-tips-to-avoid-falling-victim-to-pig-butchering-schemes-during-international-fraud-awareness-week |archive-date=2024-10-05 |access-date=2024-01-29 |website=www.irs.gov |language=en}}

An important aspect of countering pig-butchering scams involves tracing stolen cryptocurrencies. This process is intricate due to the decentralized and pseudo-anonymous nature of cryptocurrencies, and requires specialised tools and knowledge.{{cite web |title=FBI Releases 2023 Cryptocurrency Fraud Report |url=https://www.fbi.gov/contact-us/field-offices/philadelphia/news/fbi-releases-2023-cryptocurrency-fraud-report |website=Federal Bureau of Investigation |language=en-us |access-date=2025-02-05 |archive-date=2025-01-18 |archive-url=https://web.archive.org/web/20250118180909/https://www.fbi.gov/contact-us/field-offices/philadelphia/news/fbi-releases-2023-cryptocurrency-fraud-report |url-status=live }} In 2022, for example, the FBI set up the Virtual Assets Unit, with the express remit of addressing crypto-based financial crime.{{cite web |title=FBI to form digital currency unit, Justice Dept taps new crypto czar |url=https://www.reuters.com/technology/fbi-form-new-digital-currency-unit-justice-dept-taps-new-crypto-czar-2022-02-17/ |website=Reuters |access-date=2025-02-05 |archive-date=2023-10-12 |archive-url=https://web.archive.org/web/20231012183903/https://www.reuters.com/technology/fbi-form-new-digital-currency-unit-justice-dept-taps-new-crypto-czar-2022-02-17/ |url-status=live }}

The process typically begins with the collection of relevant transaction data, such as transaction IDs and wallet addresses associated with the scam. Advanced blockchain analysis tools are then employed to trace the path of the stolen funds. These tools can identify patterns and link different transactions to specific wallets, which are essential in building a case against the perpetrators.{{Cite web |date=2022-12-23 |title=Pig Butchering Scam - Protect Yourself! |url=https://cncintel.com/pig-butchering-scam/ |access-date=2024-01-31 |website=CNC Intelligence |language=en-US |archive-date=2024-01-31 |archive-url=https://web.archive.org/web/20240131091130/https://cncintel.com/pig-butchering-scam/ |url-status=live }}

Consequences

The scam typically combines elements of romance and investment fraud, and often involve the gradual building of a relationship with the victim, leading to significant financial losses. Victims are lured into investing in fake opportunities, particularly with cryptocurrencies, and end up losing large sums of money. The psychological impact is equally severe, as victims not only face financial ruin but also the loss of what they perceived as a genuine, intimate relationship. These type of scams are particularly insidious because they play on both the financial aspirations and emotional needs of individuals, leaving victims feeling betrayed, embarrassed, and reluctant to discuss their experience with others or report it to authorities.{{Cite web |title=Why "Pig Butchering" and Other Scams Are on the Rise {{!}} Psychology Today |url=https://www.psychologytoday.com/intl/blog/the-fraud-crisis/202306/pig-butchering-and-other-scams-on-the-rise |access-date=2024-01-31 |website=www.psychologytoday.com |language=en}}{{Cite web |date=2022-12-13 |title='Pig Butchering' Scams: What They Are and How to Avoid Them {{!}} FINRA.org |url=https://www.finra.org/investors/insights/pig-butchering-scams |access-date=2024-01-31 |website=www.finra.org |language=en |archive-date=2024-02-06 |archive-url=https://web.archive.org/web/20240206113333/https://www.finra.org/investors/insights/pig-butchering-scams |url-status=live }}

In popular culture

The 2023 Chinese movie No More Bets is a crime drama based on interviews with real victims of the scams. It garnered attention and success in China, bringing the scams and the issues related to them to the forefront of public discourse. The movie highlights the plight of the numerous low-level scammers who are themselves victims of coercion, having been lured from their homes by promises of stable employment, only to find themselves trapped and forced into committing these scams.

References

{{reflist|refs=

{{Cite web|url=https://www.aura.com/learn/the-pig-butchering-scam|title=The Pig Butchering Scam: 10 Common Warning Signs|website=www.aura.com|access-date=2023-11-03|archive-date=2024-05-27|archive-url=https://web.archive.org/web/20240527073856/https://www.aura.com/learn/the-pig-butchering-scam|url-status=live}}

{{cite web |last1=Liu |first1=Sijie |last2=Liu |first2=Jingyu |title=东南亚"杀猪盘"："爱情"圈养的网络骗局 |url=https://www.bjnews.com.cn/detail/155122874714389.html |publisher=The Beijing News |access-date=9 July 2024 |archive-url=https://web.archive.org/web/20240324142209/https://www.bjnews.com.cn/detail/155122874714389.html |archive-date=24 March 2024 |language=zh |date=27 February 2019}}

{{Cite web|url=https://www.trendmicro.com/vinfo/es/security/news/cybercrime-and-digital-threats/unmasking-pig-butchering-scams-and-protecting-your-financial-future|title=Unmasking Pig-Butchering Scams and Protecting Your Financial Future - Noticias de seguridad - Trend Micro ES|website=www.trendmicro.com|access-date=2023-11-03|archive-date=2023-11-03|archive-url=https://web.archive.org/web/20231103220952/https://www.trendmicro.com/vinfo/es/security/news/cybercrime-and-digital-threats/unmasking-pig-butchering-scams-and-protecting-your-financial-future|url-status=live}}

{{Cite web|url=https://www.fincen.gov/news/news-releases/fincen-issues-alert-prevalent-virtual-currency-investment-scam-commonly-known|title=FinCEN Issues Alert on Prevalent Virtual Currency Investment Scam Commonly Known as 'Pig Butchering'|website=www.fincen.gov|access-date=2023-11-03|archive-date=2023-11-03|archive-url=https://web.archive.org/web/20231103220954/https://www.fincen.gov/news/news-releases/fincen-issues-alert-prevalent-virtual-currency-investment-scam-commonly-known|url-status=live}}

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