Learning More About Pig Butchering Scams and How To Avoid Them

As cryptocurrencies have gone mainstream, more individuals have had the opportunity to participate in the financial system and build personal wealth. At the same time, scammers have increasingly targeted users with complex scams to rob them of their investments. Recently, scammers have increasingly turned to a scheme known as “pig butchering,” which involves a scammer reaching out and slowly manipulating an unsuspecting individual into transferring them money.

What is Pig Butchering?

Pig butchering is not a ruse confined to the crypto industry. It occurs when a scammer takes a long-term approach to its target, building trust over a sustained period, often with small talk, feigning a romantic interest or promises of large returns on investments. But the scammer’s aim is always the same: Defraud targets of their assets, whether it is fiat currency or crypto assets.

Pig butchering is also not confined to any particular demographic or population - anyone can be targeted and fall victim to these scams. The scam is known as "pig butchering" because it backs the idea of fattening up a pig before slaughter. Except in this case, the scammers will leverage social media, dating apps, or text messages, manipulating their targets by appealing to their emotions and eventually causing them to let their guard down.

After the scammer establishes trust with their target, they will introduce the idea of making some kind of risk-free investment, even offering doctored financial information to assuage any concerns. They will entice the target to share personal banking information and ultimately convince them to transfer large sums of fiat or cryptocurrency. The scammers may even send a small amount of funds to the target to show that their investment is profitable to draw out the scam for as long as possible. Once they have defrauded their target out of their investments, they often simply disappear.

How To Spot Pig Butchering Schemes

Beware of contact from random people: If you receive a phone call, text message, email, or direct message from someone you don’t recognize, put your guard up immediately. Pig butchering scammers will often send a text or random message, then attempt to strike up a conversation over an inane topic to pique your interest. Once you’ve let your guard down, they will strike with a request for personal financial information to make an investment.

Beware of the get-rich quick pitch: Investing comes with risks, whether it’s investing in the stock market or digital assets. If you ever are in a conversation with someone who offers an investment opportunity without risk, it is most likely too good to be true. Every investment opportunity has upside and downside risks. Beware of any individual who will tell you differently–and simply walk away if they put any pressure on you making a decision quickly.

Never Give Away Personal Info or Financial Info: This might sound obvious, but when in doubt, avoid giving away your personal or financial information to someone you have met online. This includes your social security number, bank account number, credit or debit card details, or your crypto wallet address. Simply avoiding these pitfalls will ensure you won’t be vulnerable to pig butchering schemes.

Onward and Upward!
Team Gemini