What is a Pig Butchering Scam?
A romance scam called the "Pig Butchering Scam" is prevalent in Southeast Asian countries, particularly China. The scam operates with a corporate-like structure and employs many individuals, unlike other scams typically run by a single person. Billions of dollars worth of cryptocurrency has been lost due to pig butchering scams.
In the Pig Butchering Scam, a "host" cultivates a relationship with the victim (Pig), taking weeks or even months to build trust before introducing the victim to the investment scam. The scammer urges the victim to invest more and more money over several months. Once the victim has invested small amounts of money, often in cryptocurrency, the scammer encourages them to invest more substantial sums, using a range of excuses to withhold funds, including taxes, locked accounts, service fees, and technical issues. Victims often have a separate line of communication with "customer support" from the platform, unaware that the host is part of the scam.
The defining feature of the Pig Butchering Scam is how victims are introduced to the scam through a natural connection with the scammer rather than through paid advertising or marketing. The scam has a corporate-like structure with different people responsible for various aspects of the operation, which sets it apart from other scams typically run by a single person.
While many fraudulent investment platforms share the characteristic of being unable to withdraw funds, the Pig Butchering Scam stands out because of the way it operates, with scammers working slowly and patiently over time to build trust and encourage investment. When they cannot withdraw funds from the platform, victims become aware that they have been scammed.
Identifying a Pig Butchering Scam
Individuals of both genders are targeted, and the hosts employ profiles of both males and females.
The host will greet you and talk with you every day.
They share pictures of things they allegedly bought, places they visited, or food they cooked.
They claim to want to learn something from you but also have things they want to teach you.
They have their own business that you cannot verify independently.
They talk about their beliefs and where they believe they are going in life.
They ask about your goals and dreams and motivate you to aim higher.
They casually mention spending significant money on material items to belittle the victim.
In a week or two, but sometimes longer, they will bring up forex or cryptocurrency investing or trading.
They'll keep mentioning investing and crypto trading as something they're passionate about, hoping you will invest your own money.
They suggest you check out the investment or trading website they refer you to.
Most times, you need to deposit cryptocurrency to fund the "investment platform" account.
They belittle you for not investing "enough" and say you must spend money to earn money.
They'll "trade" with you, taking their "trading advice," and you'll "earn" profits together, but your "account balance" doesn't actually exist.
They will devise excuses to get you to put in more money and say that fees cannot be deducted from your account balance.
In conclusion, the Pig Butchering Scam is a large-scale, corporate-like operation that preys on victims by building trust with scammers rather than through paid advertising or marketing. Victims are encouraged to invest small amounts initially, which gives the impression that the investment platform is legitimate, before being encouraged to invest more significant sums. The scam continues over several months, with victims only realizing they have been scammed once they cannot withdraw funds.
If you have been a victim of a crypto pig butchering scam, resulting in the loss of your hard-earned funds, we understand the frustration and distress you may be experiencing. At Token Trace, we are dedicated to providing swift and effective solutions to help you trace the whereabouts of your stolen funds. Contact us today!