Understanding the Pig Butchering Scam in Crypto: How It Works and Why It’s on the Rise
Scammers have devised various fraudulent tactics, with schemes like pig butchering gaining traction among malicious actors. Pig butchering is a form of confidence scam where individuals are persuaded to transfer large sums of money, often in cryptocurrency, to scammers.
Unlike typical internet scams, pig butchering involves prolonged and intentional communication to build trust before exploiting the victim. The term “pig butchering” derives from the process of gradually gaining the victim’s trust (fattening up the pig) before ultimately deceiving them (leading them to the butcher).
This type of scam is particularly prevalent in Southeast Asia, where perpetrators are often associated with larger criminal organizations. Many scammers are coerced into carrying out these schemes after being lured abroad for work or other reasons and then threatened or kidnapped.
Scammers employ various tactics, such as romance scams or fake crypto investment opportunities, to persuade victims to part with their money. For example, in a romance scam, the scammer may gradually request cryptocurrency from the victim, while in a crypto investment scheme, the victim may be enticed to invest in a fraudulent trading platform. Victims are often initially paid to build trust before being encouraged to invest more funds.
Once the scammer has obtained enough assets, they abruptly cut off communication with the victim, leaving them defrauded. Cryptocurrencies are preferred by scammers due to their difficulty to trace, especially when utilizing decentralized exchanges.
There has been a significant increase in pig butchering scams globally, with authorities receiving thousands of complaints and reporting losses exceeding millions of dollars. Despite this, experts believe that many cases go unreported due to victims feeling ashamed of falling for romance scams or similar schemes.