In recent times, a sinister type of identity theft scam known as "pig butchering" has become increasingly widespread, causing financial and emotional harm to people globally. This scam, also referred to as the "fat-herder-shearer" method, involves criminals building trust with their targets before defrauding them.

The scam typically begins when scammers contact victims through text messages, social media, or dating apps using fake accounts. Over time, they establish a rapport with the victims, much like how one would feed and care for a pig. Once trust is built, the scammer suggests investing in cryptocurrencies, promising guidance and support. Initially, victims are persuaded to deposit a small amount of money. The scammers then create fake positive returns, allowing victims to withdraw a portion of these imaginary profits. This encourages victims to invest larger amounts.

However, when victims try to withdraw their total capital, they encounter exorbitant withdrawal charges or find they cannot access their funds at all. By this point, the scammers have disappeared with the money.

Several notable cases have highlighted the rapid growth of this scam. In March 2024, the U.S. Attorney’s Office of Massachusetts initiated a forfeiture complaint regarding over $2 million in digital currency linked to a pig butchering scam. An investigation that began in spring 2023 revealed a Massachusetts resident had been defrauded of over $400,000 by scammers who lured him into a crypto-based pyramid scheme. The funds were tracked and frozen in January 2024.

Similarly, in December 2023, four individuals in Los Angeles were arrested and charged with running a pig butchering scheme that targeted multiple victims. These cases underscore the prevalence of financial frauds, which, according to FBI reports, result in billions of dollars in losses worldwide.

To avoid falling victim to such scams, it is crucial to stay alert. Be cautious of unsolicited investment advice, especially from online acquaintances. Always verify the legitimacy of any investment platform independently before transferring money.

By being informed and cautious, you can protect yourself from the devastating impact of pig butchering scams.