Pig Butchering Scams: What They Are, Warning Signs, and How to Avoid Them

What Is a Pig Butchering Scam?

A pig butchering scam, also known as a “sha zhu pan” scam, is a type of online investment fraud that involves scammers creating fake online personas to lure victims into fraudulent investment schemes. The term “pig butchering” comes from the scammers’ practice of “fattening up” their victims by building trust over time before “slaughtering” them and stealing their money.

These scams, which often originate overseas and involve cryptocurrency “investments,” have become a global problem, with several billions of dollars in reported losses worldwide.

How Pig Butchering Scams Work

Pig butchering scams are sophisticated and often follow a well-orchestrated process to deceive victims and steal their money. While there are some variations, these scams typically follow a similar pattern:

1. Creating a fake persona: Scammers create phony online identities, often posing as successful investors or attractive singles on dating apps and social media. These fake identities are carefully crafted to appeal to potential victims’ interests and vulnerabilities and will use stolen or artificial intelligence (AI)-generated photos and fabricated backstories to make their personas seem credible and trustworthy.
2. Initiating contact: Scammers will contact potential victims via dating apps, social media, or even random phone calls and texts. They may use scripts and pre-written messages to initiate conversations and gauge the victim’s receptiveness. They will often cast a wide net—contacting numerous potential victims in hopes of finding those most likely to fall for their tactics.
3. Building trust: Scammers spend weeks or months building a relationship with the victim, often feigning romantic interest. They engage in frequent, friendly communication, showing interest in the victim’s life and sharing personal stories to create a false sense of intimacy. They do not initially bring up anything about money or investments. They may use “mirroring” techniques to match the victim’s language, interests, and beliefs to create a sense of connection and familiarity. Scammers sometimes may even send small gifts or tokens of affection to gain the victim’s trust and emotional investment.
4. Introducing investments: Once trust is established, the scammer steers the conversation toward investments, often involving cryptocurrency or alternative assets like foreign exchange. This turn is usually framed as an opportunity to build a future together or achieve financial freedom. Scammers present themselves as experienced investors who want to help the victim get started and succeed. They will share fabricated success stories or claim to have inside knowledge of lucrative investment opportunities.
5. Prompting deposits: The scammer convinces the victim to download a supposed investment app or visit a fraudulent investment platform. They walk the victim through the process of creating an account and making an initial deposit, which is typically a relatively small amount to lower the victim’s guard. Scammers may even let the victim withdraw this initial deposit to further build trust and make the investment seem legitimate.
6. Manipulating further investment: Once the victim has made an initial deposit, the scammer uses manipulated data and fake reports to show huge returns on the investment. They encourage the victim to invest even more money to capitalize on this supposed success, often using time-sensitive offers or claiming that a big opportunity is about to pass. Scammers may also introduce a sense of exclusivity, claiming that the victim is part of a select group with access to these special investments. As the victim invests more money, the scammer continues to show false profit reports and uses emotional manipulation to stay in control, continuing to profess love, promising a shared future, or even using threats and intimidation.
7. Vanishing act: Eventually, when the scammer has extracted as much money as possible from the victim, they abruptly cut off all communication and disappear. The fraudulent investment website or app is taken offline, and the victim is left with no way to access their supposed investment or contact the scammer. In some cases, scammers may even use the information gained during the scam to commit identity theft or target the victim’s friends and family.

Real-Life Examples and Impact

Real-life examples of pig butchering scams are growing in prevalence and underscore the devastating financial and emotional impact that these fraudulent schemes can have on victims from all walks of life. The amount of money that victims lose can range from the thousands to the millions, and reports vary in terms of average losses.

A 2022 study of 550 victims by the anti-scam organization GASO found that the average loss for American victims was over $210,000. Their study also found that 77% drained their bank accounts, and 43% borrowed additional money from friends and family. While those losses are large, another study from TRM suggests the average loss could be much higher.

In terms of overall impact, researchers from the University of Texas at Austin found that more than $75 billion was lost to pig butchering scams from 2020 to 2024, and they suggest that the true number could be even higher. Indeed, many victims do not report their losses to the authorities (for instance, the Australian government reports just 13% of victims do), perhaps out of embarrassment or fear of reprisal.

These heart-wrenching stories below highlight the sophisticated tactics employed by pig butchering scammers and the importance of remaining vigilant, verifying information, and being cautious when engaging with strangers online, especially regarding investments and financial matters. Raising awareness about these scams and their tactics can help protect more people from falling victim to these crimes.

Case 1: An IT Professional from India

In one harrowing case, a female Indian information technology (IT) professional working in Philadelphia fell victim to a sophisticated pig butchering scam that combined romance fraud with cryptocurrency investment. The scammers used deepfake videos and advanced scripting to gain trust and manipulate her emotions, ultimately convincing her to invest in fraudulent cryptocurrency platforms. As a result, she lost over $450,000 and was left with significant debt.

The victim’s ordeal began when she met a man who called himself “Ancel,” on the dating app Hinge. He claimed to be a French wine trader. Their conversation quickly moved to WhatsApp, where “Ancel” deleted his Hinge profile, giving the impression that he wanted to focus solely on her. The scammer skillfully exploited the victim’s vulnerabilities, particularly her recent divorce, to gain her trust and make her more susceptible to the scam. He then fabricated shared retirement plans, claiming that it could be funded by lucrative cryptocurrency investments.

Case 2: A Malaysian Nurse

A 37-year-old Malaysian nurse working in Singapore fell victim to a pig butchering scam that left her with a total debt in excess of $270,000. Feeling lonely due to COVID-19 travel restrictions, she sought companionship online and met a man claiming to be a 34-year-old interior designer from Shanghai living in Vancouver. They developed a friendship, and he eventually convinced her to invest in a fraudulent platform.

She was convinced to invest increasing amounts of money, funded by bank loans, selling her car, borrowing from friends and family, and even taking out a mortgage on her house in Malaysia. When her father warned her about investment scams, she realized she had been duped and tried to withdraw her funds, but the scammers demanded an additional $240,000 for “safety purposes.”

She took up part-time jobs to pay back as much as possible, but was left with only $250 a month for expenses after loan repayments and rent. She eventually started bankruptcy proceedings. Overwhelmed by debt and unable to recoup her losses, the woman contemplated suicide.

Case 3: A Family Man from California

In this example, a 52-year-old man from the San Francisco Bay Area fell victim to a sophisticated pig butchering scam orchestrated by a scammer posing as “Jessica” on WhatsApp. Jessica built trust by discussing personal stories and showing a keen interest in his life—then introduced the idea of investing in cryptocurrency through a trading app called MetaTrader.

Convinced by the potential gains shown in simulated trades, the victim began investing his own money, gradually increasing his investments as Jessica manipulated his emotions (e.g., relating to care for his ailing father) and pressured him to take advantage of insider information and upcoming “big markets.” Despite red flags, he continued to trust Jessica, liquidating his assets, borrowing money, and even taking out a home equity line of credit (HELOC) to invest over $1 million.

In reality, the MetaTrader app was manipulated to show fictitious profits, and all the money was stolen. The loss was devastating, leading to suicidal thoughts and a stay in a psychiatric ward. Although he filed a police report, local authorities told him they lacked the resources to effectively investigate and recover the stolen funds, and the U.S. Secret Service’s ongoing investigation faces challenges as the perpetrators are likely overseas. The scam has left the victim in financial ruin, with strained family relationships, mounting debts, and a daily struggle to cope with the emotional fallout of the ordeal.

Warning Signs of Pig Butchering Scams

1. Unsolicited contact: Be wary of unexpected messages from unknown numbers or social media accounts. Also, be careful on dating apps to verify that the contact is a real person.
2. Too-good-to-be-true investments: Claims of guaranteed high returns with little or no risk are red flags. If it sounds too good to be true, it probably is.
3. Pressure to invest quickly: Legitimate opportunities rarely require rushed decisions.
4. Romantic interest from strangers: Be cautious of online suitors who quickly profess strong feelings and then ask for money.
5. Requests for personal information: Don’t share sensitive data like bank details with unverified individuals.
6. Unregistered investment platforms: Check if investment websites or apps are registered with official regulators.
7. Difficulty withdrawing funds: Be suspicious if you can’t easily cash out your supposed investment returns.
8. Inconsistent or vague details: Watch out for contradictory information or a lack of concrete specifics about the supposed investment.
9. Promises of easy riches: Be skeptical of anyone claiming that you can get rich quick with minimal effort.
10. Persistent attempts to isolate you: It’s a red flag if scammers try to monopolize your attention and cut you off from loved ones.

Avoid Being Butchered

If you encounter one or more of the warning signs mentioned above, the best course of action is to either ignore the person or politely end the conversation while blocking the contact. It may seem harmless to continue chatting with someone who claims to have “accidentally” found you or misdialed through an app or text message, but this is often the first step down a dangerous rabbit hole. Scammers are skilled at building trust and gradually manipulating their victims, so it’s crucial to cut off contact as soon as you suspect something is amiss.

Remember, legitimate investment opportunities rarely come from unsolicited messages or chance encounters online. If someone you don’t know recommends an investment or encourages you to invest, proceed with extreme caution. Always do your own research and due diligence before committing any money. This means verifying the identity and legitimacy of the person or company offering the investment. Check their background, credentials, and registration with regulatory bodies like the Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA).

This also means researching the investment itself. Look for information from reputable sources, such as financial news outlets, government websites, or registered investment advisors (RIAs). Be wary of investments that promise guaranteed high returns with little or no risk, as this is a common red flag for scams. If something seems too good to be true or makes you feel uncomfortable, it’s best to err on the side of caution and avoid the investment altogether.

In addition, there are several other precautions you can take to protect yourself from pig butchering scams:

• Be cautious about sharing personal or financial information online, especially with individuals you don’t know well. Scammers can use this information to target you more effectively or steal your identity.
• Keep your social media profiles private, and be selective about accepting friend or follow requests from strangers. Scammers often use social media to gather information about potential victims and tailor their approach accordingly.
• Educate yourself about the common tactics used by scammers, such as love bombing, guilt tripping, or creating a false sense of urgency. Being aware of these manipulation techniques can help you recognize and resist them.
• Communicate with your family and friends about your investment decisions. Scammers often try to isolate their victims from loved ones who might question the legitimacy of the investment or express concern about the relationship. Maintaining open lines of communication can help you stay grounded and avoid falling for a scammer’s tactics.

What to Do If You’ve Been Scammed

If you suspect you’ve fallen victim to a pig butchering scam, you should immediately take the following steps:

1. Stop all contact with the scammer immediately.
2. Notify your bank or broker and block any further payments to the scammer.
3. Report the crime to local law enforcement and file a complaint with the FBI’s Internet Crime Complaint Center (IC3).
4. Gather all documentation related to the scam (text messages, screenshots, financial records, etc.) to assist investigators.
5. Consider seeking counseling to cope with the emotional impact of the financial loss and the other impacts of being scammed.

Some Other Common Online Scams

The most common type of online scam can vary depending on the year and the evolving tactics of scammers. However, some of the most prevalent online scams include:

1. Phishing scams: Scammers use fraudulent emails, text messages, or websites to trick victims into revealing sensitive information, such as login credentials or financial data.
2. Romance scams: Scammers create fake online personas to build romantic relationships with victims, eventually convincing them to send money, gifts, or personal information.
3. Investment scams: These scams involve fraudulent investment opportunities that promise high returns but ultimately steal the victim’s money. Pig butchering scams typically combine aspects of romance and investment scams.
4. Online shopping scams: Scammers create fake ecommerce websites, apps, or ads offering heavily discounted products, but the purchased items are never delivered or are counterfeit or of poor quality.
5. Tech support scams: Scammers pose as representatives from well-known tech companies, claiming to have detected issues with the victim’s device and offering to fix the problem in exchange for payment or remote access to the device.
6. Ransomware: Ransomware is a type of malicious software (malware) designed to encrypt a victim’s files, making them inaccessible until a ransom is paid. Some ransomware variants also threaten to publish or sell the victim’s sensitive data if the ransom is not paid. Attackers usually demand payment in cryptocurrency in exchange for providing the decryption key to restore access to the locked files.

The Bottom Line

Pig butchering scams are a particularly insidious form of online investment fraud that can have devastating financial and emotional consequences for victims. By understanding how these scams work and knowing the warning signs to watch out for, individuals can better protect themselves from falling prey to these schemes. Staying vigilant, verifying information, and promptly reporting any suspected scams are key to combating this global problem.