Also known as ‘Pig Butchering’
Investment fraud is a stand alone fraud, primarily originating from China. Investment fraud comes in different guises (such as the selling/trading of gold and gems) but since the conception of Cryptocurrencies, this is the ‘commodity‘ of choice for most, at the time of writing.
Investment fraud is where Crypto websites are cloned to mimic real trading investment platforms (none of which are currently regulated). Some victims will have stumbled across the fake trading platforms on an internet search and if they had invested before, they may move ahead to invest on what may appear to be an official platform. Some victims will have been targeted on social media platforms or been drawn to a profile on social media which claim to be traders and that they can help to teach trading and invest money on the targets behalf.
The victim will be sent to a website and guided when to invest. The amounts will start small and after some time and watching the increase in investment, a return will be given to the victim. A second, third, forth investment will be made over some months with increasing amounts and each time, the investment tracked and returns given. When the victim is confident in the process and the company, a large investment is made with guidance as to when, from the mentor if needed. At this point, the criminals will block the victim from accessing the site as well as any associated profiles that have been involved and the ‘invested’ money is gone.
Pig Butchering (you can read more about this here) is the combination of Investment Fraud using Romance Fraud as the vehicle of manipulation.
When this is being undertaken by South East Asian crime syndicates, a popular point of contact is on What’s App or a similar chat app, with an unknown number mistakenly texting or calling. There will be an apology for the mistake but the conversation will continue with a ‘twist of fate’ ideology being sold. The connection will form a relationship and after some time, talk of how lucky the character is will be brought into the conversation. They will explain that ‘an uncle’ or other close acquaintance is an expert in Crypto trading and that they have been given details of an incredible trading platform and tips to invest in, that have really good returns. They will declare that they didn’t want to be selfish and keep this kind of good fortune to themselves, how the investment is virtually risk free and that the victim will be in total control of the process as they are making the investments themselves. Legitimate apps may be used to let the victim gain confidence. When they are confident that the information being given is good advice, they will be recommended to another platform, this time one controlled by the scammers. When the larger amount of money is invested, the scammers take the funds and the victim is blocked from all platforms. These connections can also be made on dating and social media platforms, with slightly different stories.
On a lesser scale, this kind of fraud is also being worked by West African scammers but contact is created in a similar way to other Romance Fraud scenarios through social media and dating platforms, with the Crypto investment element brought in as a way to exploit money.
The Romance Fraud/Investment hybrid (AKA Pig Butchering) is currently a global phenomenon and billions is being lost per year. Lives are being destroyed and lost.
Operation Shamrock is now in progress to Educate, Seize and Disrupt across all stakeholders involved.
Other financial exploitations may happen in this format depending on the criminals in question.
You can use this helpful tool to search for scam investment companies here.
Romance Fraud Beyond Dating Platforms
Although romance fraud criminals continue to make extensive use of dating and social media platforms, they will look for opportunities anywhere that allows people to communicate, interact or build connections. A dating profile is not a prerequisite: scammers can exploit comment sections, direct messages, chat functions and online communities across a surprisingly wide range of platforms. This can include seemingly unlikely environments such as eBay, Etsy and online games including Words With Friends and Scrabble GO. Wherever there is an opportunity to start a conversation with a stranger, build familiarity and gradually move that interaction elsewhere, there is potential for a romance abuse approach. The important point is therefore not simply which platform someone is using, but whether that platform provides an opportunity for an unknown person to establish contact and develop a relationship.