We'll have to learn some new cryptocurrency fraud lingo, it appears. A scamming tactic called "pig butchering" — a reference to how a victim gets "fattened up" before being butchered or slaughtered — that originated in China is now spreading across borders and languages, growing into a global deception. It's called "sha zhu pan" in Chinese, which translates to "pig butchering" in English. It's a type of cybercrime that includes both relationship and investment fraud. Similar to fattening a pig, the perpetrator creates a relationship with the victim over months, sometimes amorous but not always, before luring them to invest in a bogus firm and, metaphorically, murdering the victim.
Con artists on dating apps and social media groom prospects for weeks to get them interested in investing in bitcoin, forex, gold, and other commodities, according to the Global Anti-Scam Organisation, a volunteer-led advocacy group. Instead of directly asking for money, the con artists divert victims to a fake investing website or app that they manage. Scammers use several ploys in the name of "customer service" to cajole and harass victims into depositing additional money into their own "account" within the false platform. Finally, the victims are unable to access their funds.
The Global Anti-Scam Organisation even uploaded a video on YouTube, titled, “What's behind the surge of online relationship-investment frauds today?” The caption states that the scammers “originate from the telecom, online fraud cottage industry in Southeast Asia and are run by Chinese syndicates”. The caption adds that reports of the scam began “surging inside China in mid-2019 and it quickly became a runaway success for the scam industry, which dubbed it “Pig Butchering Plate”.
One of the victims, a 22-year-old, spilt their heart out in a Reddit post a few months ago to warn others about the scam. “It's a slow scam, they first gain your trust, let you withdraw some funds to feel confident and then slowly take from you until you have nothing left,” wrote the victim in the Reddit post, adding that “these things usually involve romance”. The victim then went on to describe the incident in great detail.
According to a report in The Wall Street Journal, based on consumer filings to the Federal Trade Commission (FTC), the number of romance-scam complaints increased in 2021 compared to 2020. From 2020 to 2021, the number of romantic frauds reported to the Federal Trade Commission climbed by almost 70%. According to FTC data, victims reported losing $547 million as a result of such frauds, up 78% from the previous year.
The study also reported Emma Fletcher, a data researcher with the Federal Trade Commission's Bureau of Consumer Protection, as adding that the COVID-19 may have provided a convenient excuse for scammers to claim they were unable to meet in person, which may have aided the growth of romantic scams.
There are, however, a few strategies to avoid being a victim of this, and other cryptocurrency frauds in general.
When making online friends, be cautious. Don't be fooled by financial gimmicks like "steady earnings without loss," "low investment with huge returns," and so on. Don't be greedy, and stay away from high-return investments and gambling. Don't send money to unfamiliar accounts or people. You should be cautious when transferring money to strangers to prevent falling into the trap.
Control all of your possessions personally; don't entrust this task to others. As a burgeoning investing industry, digital assets come with a slew of hazards. If you want to reap the benefits, you should learn everything there is to know about digital assets and engage responsibly.
Phishing should be avoided at all costs. Invest your digital assets in platforms that are well-known and credit-worthy. The most important thing to remember is to recognise the official exchange platform web URL and to avoid phishing websites that resemble it.
When consumers realise they've been deceived, they need to act swiftly to avoid losing money. If the scammers contact the victim, they should try to learn as much as they can about the fraudster's name, location, and other details. After that, call the cops right away.