This scam has nothing to do with pigs, but rather, fraud that leads victims to invest in fake schemes.
“Pig butchering” is a type of investment scam where the scammer dedicates weeks to building trust with a target before convincing them to invest in a fraudulent scheme. The scam is called “pig butchering” because the scammers “fatten up” their victims by gradually convincing them to contribute more and more to their fake investments. Then they “slaughter” their victims by conning them out of money.
These “pig butchering” scams require so much time, patience, and dedication from the scammer that many targets do not even consider the possibility they’re being scammed.
According to the FBI, in 2023 investment scams accounted for just 4 percent of all fraud cases, but more than 30 percent of total losses to fraud. Victims of investment scams lost $7,000 on average, compared to the average $599 lost to all types of fraud. Cryptocurrency investments are very common in “pig butchering” schemes, and in 2023 over 70 percent of losses involving cryptocurrency resulted from investment scams.
Investment scams can take months to unfold, and investment scammers rarely meet their targets in real life. If an investment opportunity is presented to you by someone you have never met in person, be extremely cautious.
By some estimates, more than 1 in 10 Americans who have used a dating app since 2018 have been targeted by “pig butchering,” and some online “financial advisors” are really scammers searching for targets.
Be cautious if someone you met online:
- Asks you to invest – even if they pitch it as you two “investing together,” and especially if they ask you to download a specific app or use a specific trading platform.
- Tells you they know how to make big money through cryptocurrency – even if they provide evidence (which could be faked).
- Refuses to call you or meet in person, or is only able to call if scheduled in advance – they could be using new technology to disguise their voice or appearance.
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