Hyderabad: The Ministry of Home Affairs (MHA) on Thursday released a report warning the public against a new form of cyber fraud known as the “pig butchering scam’’ or "investment scam". Derived from the concept of fattening an animal before slaughter, the pig butchering scam involves a cybercriminal who is patient enough to spend weeks, if not months, on a target-- slowly gaining their trust only to rip their wallets and sometimes also their heart.
Almost a year ago, an Indian software professional in the US fell victim to the scam, leaving her emotionally violated and a loss of $450,000 (approximately Rs 4 crore) and substantial debt, reported AFP.
Datta's ordeal began with romance on a dating app, where she met "Ancel"-- a supposed French wine trader in Philadelphia. Their flirtatious banter soon moved to WhatsApp, with "Ancel" deleting his Hinge profile to create an illusion of unwavering devotion. Their interactions brimmed with selfies, flirtatious emojis, and shallow video calls, hiding the darker manipulation beneath. "Ancel" exploited Datta's vulnerabilities, including her recent divorce, to weave grand tales of a luxurious retirement fueled by cryptocurrency investments.
Persuaded by "Ancel," Datta downloaded a seemingly legitimate crypto trading app and started investing her savings. Though initial investments seemed successful and showed apparent gains, doubts surfaced when the app demanded a personal "tax" for any withdrawal attempts. The truth unravelled when Datta's brother in London discovered "Ancel's" real identity-- a German fitness influencer.
Datta is not alone in having fallen victim to such a scam. A 37-year-old Malaysian nurse in Singapore accumulated over $270,000 in debt due to this fraud for seeking companionship online during COVID-19 restrictions. Instead of finding love, she was tricked into investing in a fraudulent platform, losing all the money funded by loans, selling her car, borrowing from friends and family, and mortgaging her house.
Similarly, a 52-year-old man from San Francisco was scammed by "Jessica" on WhatsApp. She built trust with personal stories and convinced him to invest in cryptocurrency through a fraudulent app. Ignoring red flags, he liquidated assets, borrowed money, and took out a home equity line of credit (HELOC) to invest over $1 million and lose it all.
With a substantial rise in the cases of pig butchering scams in India as well, the Ministry of Home Affairs has issued a warning regarding investment fraud. As per the report, this scam predominantly targets students, unemployed youth, homemakers, and those facing financial challenges in the country, resulting in substantial monetary losses.
Pig Butchering Scam: What does the name mean?
The term "pig butchering scam" is derived from the concept of fattening an animal before slaughter. The perpetrators of these scams call their victims "pigs," the social media platforms "pig pens," and the scripts they use "pig feed." They view themselves as the "butchers," thus coining the term "pig butchering."
First scam reported in China
The first instance of a pig butchering scam is believed to have been reported in China in 2026. Known as "sha zhu pan," which roughly translates to "killing pig game" in Mandarin, scammers target individuals who are easily deceived. Cybercriminals build trust with these victims over time, eventually persuading them to invest in cryptocurrency or other seemingly profitable schemes, only to steal their money.
How a Pig Butchering Scam Works
Initial Contact (Pig Hunting): Fraudsters often initiate contact over social media or dating platforms, using fake profiles with stolen photos. Another method involves sending messages to numerous phone numbers. If the recipient responds, indicating a wrong number, the fraudster will attempt to start a conversation, making the person believe they are hitting it off. Criminals refer to this phase as "pig hunting." The Home Ministry report mentions the use of Google service platforms, Google advertisements, and sponsored Facebook ads to target victims.
Building Trust (Pig Raising): Once contact is established, the fraudster aims to develop meaningful relationships with the victim, often introducing elements of romance into the conversation. This can go on for weeks or even months. During this time, the fraudster will casually mention their supposed business acumen and success in cryptocurrency. Sometimes, victims are added to a group chat with multiple people discussing investments-- all of whom are scammers or a single person using multiple profiles. This process is called "pig raising." The fraudster then advises the victim to open accounts on online investment websites and deposit money via wire transfers to shell companies, or through legitimate virtual asset service providers (VASPs) or cryptocurrency exchanges.
The Investment Proposal: The fraudster offers high-yield investment opportunities in virtual assets, such as cryptocurrency. Once the victim agrees, they are set up on a fraudulent app or web platform, which may even be a clone of a genuine platform. This platform is completely controlled by the scammers.
Scammers Lure Victims with High Returns: The victim transfers funds to the scammer's account and sees what they believe is real-time market data. They are able to watch their investment grow and may even be able to withdraw a small amount of money from the platform. This reassurance encourages them to invest larger amounts, under the illusion that they can easily withdraw funds at any time. The scammers share doctored images showing incredible returns.
The Fraudster Cuts Off Communication (Pig Killing): Once the fraudsters decide the "pig" is thoroughly butchered, they cut off communication. At this point, the victim realises they have been scammed. This final stage is gruesomely known as "pig killing." Victims often lose hundreds of thousands or even millions of dollars.
Pig Butchering Scam: Warning Signs and How to Stay Safe
- Unsolicited Contact: Be cautious of messages from strangers, particularly if they seem overly friendly or try to build rapport quickly.
- Unrealistic Promises: If someone guarantees high returns with minimal risk, walk away. Genuine investments involve research and carry inherent risks.
- Fake Platforms: Scammers often use unknown or unverified investment platforms. Always research thoroughly before investing.
- Pressure to Act Quickly: Do not feel rushed into making investment decisions. Take your time to research and understand the associated risks.
- Requests for Financial Information: Never share your bank account details, credit card numbers, or any other sensitive information with someone you do not know well.
Tips to Protect Yourself from Pig Butchering Scams
- Don’t respond to unsolicited messages, especially those with unrealistic investment offers.
- Be sceptical of anyone who builds a fast friendship online and then pushes investment opportunities.
- Do your research on any investment before committing money. Look for established, reputable platforms.
- Never share financial information with strangers online.
- Trust yourself. If something feels off, it probably is. Stop communication and report it to the platform you’re using.
Pig-butchering cases globally
Pig-butchering scammers have stolen over $75 billion globally from January 2020 to February 2024, moving the funds to crypto exchanges. The scammers are often victims of human trafficking from Southeast Asia, trapped in compounds in countries like Cambodia and Myanmar, and forced to scam under threat of violence. The UN estimates over 200,000 people are held in these scam compounds.
A 2022 study by GASO found that American victims lost an average of $210,000, with 77 per cent draining their bank accounts and 43 per cent borrowing money from friends and family. Another study by TRM suggests the average loss could be even higher.
India gears up to tackle crypto pig butchering scams
The National Cybercrime Threat Analytical Unit's March 2024 report shows over 37,500 complaints about big tech platform misuse in India. Whatsapp had the highest number, with 14,746 complaints (42% of the total). Other platforms included Telegram (7,651 complaints), Instagram (7,152 complaints), Facebook (7,051 complaints), and YouTube (1,135 complaints).
The Indian Cyber Crime Coordination Centre (I4C) of the Home Ministry partnered with Google to tackle crypto pig butchering scams by sharing threat intelligence. Cyber-criminals use sponsored Facebook ads for illegal lending applications, with links shared with Facebook for action. The ministry has also launched a Cyber Volunteer Framework, enlisting 54,833 volunteers by March 31, 2024, to report unlawful content and aid law enforcement. Enforcement Directorate has initiated strict actions against major crypto-related frauds, and the country is enhancing law enforcement training to improve tracking and investigating cryptocurrency misuse.
