Cybercrime: Scam alert – ‘pig butchering’

February 1st, 2025
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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.

What actions should be taken?

Please be vigilant for any signs of concern or warning indicators:

  • Individuals unfamiliar to you, sending apparently harmless text messages unexpectedly.
  • Individuals who promptly attempt to transition the conversation to WhatsApp or any other social media platform.
  • Individuals who frequently decline or provide various reasons for not engaging in video calls or outright refuse to initiate video communication or meet in person.
  • Individuals engaging in casual conversations about their personal investment insights or experience.
  • The URL of the investment platform does not match the official website of a well-known cryptocurrency market or exchange, even though it may have a similar appearance.
  • The investment app presents warning messages on opening, suggesting it may be unreliable. Additionally, the computer’s antivirus software identifies it as potentially risky.
  • The investment opportunity appears to be highly attractive.

Please adhere to the following guidelines to ensure your personal and financial safety:

  • Do not participate in any financial transactions, such as sending money, trading, or investing, with individuals whom you have only interacted with online.
  • Refrain from revealing your financial condition or investment portfolio information to unfamiliar individuals.
  • Do not disclose personal information to individuals who are not known to you.
  • Refrain from sharing your banking information, identity number, copies of your identity document or passport, or any other sensitive information with any individual or website that cannot be verified as authentic.
  • Should an online investment or trading site make claims about profits that seem too good to be true, it is highly likely that those claims are not credible.
  • Exercise caution when engaging with persons who make assertions regarding exclusive investment opportunities and attempt to coerce you into making hasty decisions.
What factors contribute to the effectiveness of pig butchering scams?

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.

What methods can be employed to assess whether one is experiencing deception or fraud?

There are several indicators to consider if you have concerns about potentially becoming a victim of a fraudulent pig butchering scheme:

  • The investment opportunity appears to be highly promising. If someone is offering you an investment opportunity that promises significant profits while reducing or eliminating risk, it is probable that it is a scam.
  • They are exerting pressure on you to make a prompt investment. Investment professionals who adhere to legal standards will not exert undue pressure on you to invest in any investment opportunity that makes you feel uncomfortable.
  • The request is for personal information. Reputable investment professionals will refrain from soliciting your personal information, including your identity number or bank account number.
  • The request is for an upfront payment of money. Reputable investment professionals will refrain from requesting upfront payment. The payment request will occur solely after you have reviewed and inquired about the investment.
  • The individual was encountered through social media or through what appeared to be a random encounter. Dating apps and popular messaging apps, such as WhatsApp, can unfortunately attract individuals who engage in scams. It raises additional concerns if you have engaged in online conversations with an individual for an extended period without ever having a face-to-face meeting.

If any of the aforementioned raises concerns for you, here is the recommended course of action:

  • Cease all communication with the individual involved in the scam. Engaging in prolonged communication with individuals involved in scams increases the likelihood of being persuaded to make investments.
  • Gather and document any relevant evidence. Please ensure to capture screenshots of any messages, apps, transactions, or other relevant evidence pertaining to your interactions.
  • It is advisable to file a report regarding the scam with the police or other financial crime institutions.
  • Please get in touch with your bank. If you have already transferred funds to the scammer, you may have the option to recover your funds by contacting your bank. However, some scammers have already figured out alternative routes in receiving funds routed through digital wallets etcetera.

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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