Have you ever received a text message from an unknown or wrong number, randomly talking to you about how amazing online cryptocurrency investment is? If the answer is yes, then you have encountered an attempt at a pig butchering scam.

During these last few years, a new form of online scam has surfaced, where attackers are trying to trick millions of people from around the globe into investing in cryptocurrencies on different platforms operated and controlled by attackers. We are talking about old crypto schemes, which now cost investors millions of money. This new technique now has a new term known as Pig Butchering.

What does Pig Butchering Scam consist of?

The term pig butchering comes from the expression pig slaughter or butcher, a metaphor that describes those who assume too much risk in an attempt to generate significant short-term returns quickly. According to Chen Arad, chief operating officer of Solidus Labs, a firm that provides tools to help crypto exchanges and institutions prevent market manipulation, scammers usually send a message via WhatsApp, text, or another app such as Tinder, pretending that it is intended for someone else and using an attractive person’s profile picture. The attacker builds trust with their victims to gain as much information about them as possible. Later, they start pressuring them into depositing large amounts of money into investing in cryptocurrencies, but within the scammers-owned platforms or through shady wallets. These fake platforms initially seem legit and legal, but unfortunately, they are controlled by scammers, in which every investment can vanish for good.

Scammers” “cut victims off and take all their money after feeding them promises of romance and wealth”, as described in an FBI report. Arad says that while risk monitoring firms can track stolen funds using crypto and blockchain, there is no guarantee that the funds will be recovered once they are lost.

Who do these scammers target?

One of the main target groups that these scammers aim for is reported to be the elderly, who have already been scammed into investing thousands of money into cryptocurrencies with 0 return on investment.

Scammers convince their targets to move their cryptocurrency away from legitimate exchanges and onto fraudulent websites that look like authentic trading platforms by slowly working to persuade them, according to an August alert from Coinbase. The alert states that the attackers even convince their targets to invest more significant sums of money by giving them a small amount of money and claiming it to be a “return.” However, when victims attempt to withdraw their funds, they are told they must pay a fee before their money can be released. The scammers often disappear with the stolen funds, which are nearly impossible to return.

According to Jan Santiago, deputy director of Global Anti-Scam Org, a non-profit with volunteers worldwide researching cybercrimes, scammers find ways to appeal to their target’s emotions, such as by asking questions like, “Don’t you want to have enough money for your children?”

How to avoid and protect yourself from Pig Butchering scam?

Pig butchering scams are becoming increasingly prevalent. According to the FBI’s Internet Crime Complaint Center, $429 million was lost to these scams in 2021. Therefore, the need to be more caution towards these scams is bigger than it was a few years ago. Here are some advices in order to protect yourself from these malicious cyber scams.

1. First advice would be to not accept investment advice from random people over the internet. If a person approaches you on your social platforms or unsolicited communication, and starts a discussion with you for online investment, always be suspicious and do not give your trust to them right away.
2. You should be wary of investments that promise higher-than-average returns, particularly if they entice you to invest more money immediately after your initial investment.

“It’s crucial to keep in mind that there is always an equal amount of risk associated with high opportunity when investing in crypto, especially if you are new to the industry,” says Arad. “There is no such thing as risk-free high returns.”

3. If you notice something unusual throughout your communication with a potential scammer, always report it immediately. If you have been a victim of this type of scam, don’t feel embarrassed. Unfortunately, these cams are vey hard to detect, especially if you haven’t been informed before about these techniques circulating. Therefore, it is always best to be caution, and if it ever happens to you to report it immediately. Global Anti-Scam Org offers resources if you’ve been affected by this sort of fraud. You may also report to the FBI’s Internet Crime Complaint Center.