Pig Butchering

Pig Butchering

Pig butchering is a term used to describe a type of investment fraud that is combined with romance fraud. This type of scam typically involves a fraudster (the butcher) posing as a wealthy and successful investor who promises high returns on investments (crypto, gambling, fraudulent rebates and other). The fraudster then targets victims (the pigs) who are looking to invest their money in a lucrative opportunity. There are concerns as to whether we should even be using this term at all, given it’s been named this by the criminals themselves. 

The term “pig butchering” is a translation from the Chinese criminal gang phrase ‘shāzhūpán’ as the fraud follows the pattern involved with this practise. The romance fraud element of the fraud is aligned with the hunting for and raising of the pig, building trust and intimacy, while the killing refers to the process where the victim is coerced into believing the investment process is real before the butchering and then eating occurs as the money is stolen.

The four stages can be viewed here:

Pig Hunting: Scammers use stolen pictures and fake identities as wealthy, upstanding singles to look for a targets on dating or other platforms. They will have good and successful occupations and flood  many profiles with opening messages with the hope of a bite.

Pig Raising: The grooming process. As with traditional Romance Fraud, trust is built, stories of the past are shared to create connection and intimacy with the victim.

Pig Killing: Ideas of investment have been introduced. An investment platform is shown and how it works then small amounts of money are invested and (purposefully) get a return. This is repeated with larger sums of money over some time.

Pig Eating: When the largest amount of money has been drawn from the victim to invest, the fraudster will close the platform or block the victim from it and move the money.

In these cases, the fraudster engages in romance fraud, posing as a potential love interest and uses this as a way to establish trust and gain access to the victim’s finances.

There are slight differences with ‘pig butchering’ and traditional romance fraud. However, the overlaps are greater and as always, fraudsters collaborate, sharing the best and most lucrative of their fraudulent activities with each other to ensure the the biggest ‘cash outs’ on a larger scale. Romance fraudsters, the typical being that related to 419 fraud (with relevance to APP-Advance Push Payment fraud) have origins in West Africa, where as Pig Butchering originates in China. The targeting, the grooming and connection with victims remain the same, the difference is often in Romance Fraud, a desire on part of the victim to help their loved one when a situation arises and Pig Butchering where investment is the priority and the hope is to help themselves or family in to a better financial situation.

The other difference to mention here is the criminal organisations themselves. Romance Fraud can be undertaken by large organised crime groups where students are recruited straight from college willingly or not so willingly, to work being part of much larger crime industry which includes BEC (Business Email Compromise) where there is need for chains of money laundering to take place. There are also smaller groups run by ‘bosses’ as well as newbie individuals. Of course there are also those like the Tinder Swindlers of the world, who work as themselves with multiple victims face to face. With ‘Pig Butchering’, the criminal gangs have been set up as a ‘company operating model’ with its ’employees’ trafficked and tricked through employment schemes for example, then held captive in what can only be described as concentration camps being forced to carry out this fraud. You can read about this here.  These models mostly have each stage (1-4) of the Pig Butchering process, undertaken through a different ‘department’.

This type of fraud can be devastating for victims, who may lose their life savings or fall into debt as a result. It can also be difficult to recover the lost funds, as the fraudster may use fake identities and offshore accounts to hide their tracks.

To protect yourself from pig butchering fraud, it is important to be skeptical of any investment opportunities that seem too good to be true. Research any potential investments thoroughly and never invest more than you can afford to lose. It is also important to be cautious of potential romantic partners who seem too good to be true, as this could be a sign of romance fraud.

If you suspect that you have been a victim of pig butchering fraud, it is important to report it to the authorities as soon as possible. This can help to prevent other people from falling victim to the same scam and increase the chances of recovering your lost funds.

On the recovery of funds, recovery scams are huge business. As always, cashing in on bad situations, the frauds are in line to try and part you with the last of your cash. There are ways, in some circumstances to get funds returned but legitimate routes are rare. Erin West, a prosecutor of 25 years in the USA, tried and tested a method through the court system there, obtaining a warrant to recover stolen assets being held in Crypto wallets with Crypto companies but law enforcement as a whole is largely uneducated and simply send victims away. Some specialised companies can investigate for a fee outside of the CRM route through banks. Thorough investigations should be done on any company offering these services. 

Overall, pig butchering fraud is a serious problem that can have devastating consequences for victims. With technology aiding scammers at every turn and the sophistication of these frauds escalating rapidly, staying vigilant and being cautious and curious with your investments and relationships at every turn is the best way to protect yourself from this type of fraud and avoid becoming a victim.