Hi there,
Searches for “pig butchering scams” have soared by 300% over the past month as WhatsApp removed over 6.8 million accounts allegedly linked to global criminal ‘pig butchering’ scam operations in August. These ‘pig butchering’ scams have become the world’s most lucrative criminal enterprise, generating an estimated $12.4 billion in 2024 alone, while victims worldwide have been ripped off an estimated $75 billion over the past four years.1,2,3
In honour of Cybersecurity Awareness Month this October, forex broker experts at BrokerChooser broke down the scam and highlighted six key warning signs to help people spot these schemes early and avoid losing thousands.
Balazs Faluvegi, Senior Analyst from BrokerChooser explains the pig butchering scam:
“A long-term fraud that intertwines investment schemes, romance scams and cryptocurrency fraud—victims of these schemes are often referred to as ‘pigs’ by the scammers. The scam works by creating a false sense of intimacy or romance, gradually ‘fattening up’ the victim with trust and attention. Once enough trust is established, the victim is drawn into a cryptocurrency investment scheme, which ultimately leads to the final ‘butchering’ stage, leaving them drained of their money.
The process typically follows a narrow, repeatable pattern: unsolicited contact, trust-building and then a lure into fake investment schemes. Recognising the warning signs gives you a strong chance of avoiding becoming the next victim.”
Six red flags to help you steer clear of the PIG-ture perfect scam
- Think twice before replying to unsolicited messages
Pig butchering scams often start with scammers ‘hunting’ victims through random texts, social media, or dating apps. They sometimes pretend to be a wrong number or an acquaintance to grab your attention. Once contact is made, they strike up a friendly conversation, often messaging several times a day which gradually turns to investment talk, laying the groundwork to gain your trust before attempting to defraud you. Saddeningly, this is increasingly happening on dating apps as well. After matching, stay alert if they quickly ask for your number and try to move the conversation to Telegram or WhatsApp.
A Reddit user shared (full ver. here):
”I got a match, we chatted for less than a day and they quickly asked for my number. I was hesitant but didn’t think they could do much with it, so I gave it to them. About a day later, they asked if I use Telegram or WhatsApp. They also mentioned they mine ETH and could teach me. I strung them along, not openly refusing to get the apps but just pretending to be busy or changing the subject. Out of boredom and some loneliness, I downloaded Telegram when they weren’t responding to my texts as much. They were excited I decided to join them and began talking to me much more. I continued talking to this person and began to enjoy our conversations. A few days in, they started sending voice memos and even called me one night. They called on Telegram, which was a red flag, but still.
I began to get excited, still keeping a 20% chance that this was most likely a scam. But I was thinking, “This is an extravagant length to go for a possibility I might invest in ETH.” Then the conversation came back around to mining ETH. They wanted me to download the crypto.com DeFi wallet app and send them screenshots so they could help me. I refused twice and they instantly deleted the chat and blocked me on Telegram.”
- Watch for manipulated trust
Pig butchering scams are an insidious long game. Unlike traditional scams which execute quickly, these schemes exploit both emotional and financial vulnerabilities. Scammers spend weeks or even months building your trust before introducing seemingly lucrative investment opportunities, casually mentioning their success and offering to teach you. Remember, no random stranger has a genuine interest in helping you make money.
A common tactic is to let you withdraw small initial ‘profits’ to encourage you to invest larger sums. And when you attempt to withdraw bigger amounts, they suddenly create obstacles like taxes, fees or system errors, blocking access to your funds.
- Be wary if they push encrypted platforms
If someone quickly asks to move the conversation to WhatsApp or Telegram, this is a red flag. Scammers prefer these end-to-end encrypted platforms because messages are much harder for authorities to monitor or trace, giving them more freedom to manipulate victims without detection. Remember, no legitimate company, trader or investor will contact you through WhatsApp, dating sites or a random text message.
- Recognise manipulative ‘success stories’
These scammers often show off their wealth and share fabricated trading success stories to make you feel like you’re missing out. They may casually mention how much money they’ve made in crypto, forex, or other investments, creating the impression that their methods are tried-and-true, increasing your desire to invest. They rarely ask you to invest immediately. Instead, they let you initiate the idea, making you feel in control while subtly manipulating your decisions.
- Notice high-pressure tactics and urgency
It’s a classic pressure tactic when the scammer starts pushing you into making hasty investing decisions or acting ‘before the opportunity disappears’. By this stage, you might already trust them, making it easier for pressure to cloud your judgment as you become emotionally invested. Be careful of offers that sound too good to be true, such as ‘exclusive’ crypto or forex opportunities with guaranteed profits. Legitimate investments always carry risk and anyone promising massive returns with no risk is almost certainly a scammer.
- Beware of fake trading websites
To appear legitimate, pig butchers often create fake trading platforms that mimic real exchanges. These sites may show fake account balances, doctored profits, fabricated investment opportunities, and counterfeit user reviews or testimonials, often featuring profiles of ‘successful’ traders claiming impressive returns. Always research any trading platform thoroughly before investing. Check for licensing, regulation and independent reviews and never solely rely on what the platform or its ‘users’ claim.
