A developing scam has continued to draw attention to a well-known virtual currency investment fraud called ‘pig butchering.’ This scam has its roots in Southeast Asia, and its name is derived from the Chinese phrase ‘Shāz Hū Pán,’ which translates to the act of pig butchering.
These scams resemble the practise of feeding a hog to increase its weight before it is slaughtered. Scammers might exploit fabricated identities, the pretence of potential relationships, and intricate narratives to deceive victims into thinking they are in trustworthy partnerships before unlawfully taking their assets, which is called fraudulent activity. Once the individual has been adequately groomed, the perpetrator asserts that they have achieved positive investment outcomes, often involving real estate or cryptocurrency. They propose the idea of investing only a portion of the victim’s funds. If the victim provides consent, they may be presented with a cryptocurrency trading platform operated by the scammers. They may be encouraged to register and set up the process of depositing funds.
This scam is predominantly conducted by a collective of individuals engaged in cryptocurrency scams. They target dating applications and social media platforms to search for potential victims. The activity involves an individual who engages in deceptive behaviour by creating a false profile with the intention of contacting potential victims, usually through social media platforms like WhatsApp, Facebook, Tinder, or similar websites. They also utilise cold calling on occasion. Additionally, they may also employ random text messages, disguising themselves as an incorrect phone number or a former acquaintance. The objective is to engage in a friendly conversation with the individual affected, aiming to establish a positive connection as a potential ‘new acquaintance’ or ‘romantic partner’. They have also been attempting cold calling to acquire victims.
Throughout the course of building a trusting relationship with the person, they gradually introduce the idea of participating in a business investment using cryptocurrency. The new acquaintance utilises persuasive tactics and gradually convinces the victim to consider investing in cryptocurrency. They then direct the victim to a deceptive website or application that appears genuine but is actually under the control of the fraudulent individual. Prospective investors are encouraged to begin with conservative sums, and the person involved in the scheme will guarantee a minimal return on the investment. The perpetrator may potentially allow the victim to make one or two withdrawals of funds to convince them that the process is legal.
The victim is subsequently persuaded to make larger investments on the fraudulent platform, occasionally totalling hundreds of thousands of Rands. In instances where the funds are transferred to an illegitimate investment application or website, the individual responsible for the fraudulent activity vanishes, taking all the funds with them. This leads to considerable economic losses for the individual impacted by the incident.
These individuals demonstrate expertise in manipulating their targets, which in turn heightens the susceptibility of potential victims to engage in fraudulent activity.
Consumers are encouraged to maintain a state of continuous vigilance and exercise caution to safeguard themselves against potentially fraudulent activities, especially considering the growing popularity of emerging financial products like Bitcoin and other cryptocurrencies. It is recommended that consumers thoroughly research the investments they are considering, exercise caution when dealing with individuals or entities that request upfront payment in cryptocurrency, remain wary of promises of substantial and quick returns, and refrain from mixing online financial advice or promises of returns with reliable investment guidance.
Please be vigilant for any signs of concern or warning indicators:
Please adhere to the following guidelines to ensure your personal and financial safety:
Pig butchering scams can be successful as they exploit the victim’s desire for financial gain and concern about potential missed opportunities. The scammers are aware that individuals frequently exhibit enthusiasm for investing in innovative and attractive enterprises, particularly when they perceive the potential for substantial financial gains.
The scammers engaging in fraudulent activities exploit these emotions for their own benefit. The scammer establishes a sense of urgency by informing the potential investor that the opportunity to invest is available for a limited duration or that the price is expected to increase soon. They may employ persuasive sales techniques to encourage the victim to make prompt investment decisions.
There are several indicators to consider if you have concerns about potentially becoming a victim of a fraudulent pig butchering scheme:
If any of the aforementioned raises concerns for you, here is the recommended course of action:
For safety purposes, please have a thorough security check on websites you are unsure of to find possible scams, and known holes, and make sure the correct security headers are in place. This can be done at: https://yima.org.za/.
Natascha Miller LLB BA (Forensics) (Unisa) is a legal practitioner, conveyancer and Forensic Consultant at Boshoff Njokweni Inc in Cape Town.
This article was first published in De Rebus in 2025 (Jan/Feb) DR 28.
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