Pig Butchering Scam

What Does Pig Butchering Scam Mean in Crypto?

A pig butchering scam, also known as Sha Zhu Pan, is a form of social engineering scam where the perpetrator nurtures a relationship with their target before manipulating them into investing in fraudulent cryptocurrency schemes.

This cryptocurrency scam originated from Southeast Asia. It derives its name from the fraudsters likening their victims to “pigs”; they “fatten” the victim by persuading them to make small initial investments. As the victim becomes confident in their potential returns, the scammer manipulates them to invest more. The fraudster eventually steals the invested funds and disappears when they believe they’ve extracted maximum funds from the victim.

How Does It Work?

The scam involves two parties – the butcher (scammer) and the pig (victim):

1. Initial contact – The scammer uses a dating app or social media platform, called the “pig pens,” to identify their victims. After locking in on a target, the perpetrator initiates a casual conversation under the guise of mutual acquaintance or honest mistake.
2. Gaining the victim’s trust – This is the “pig raising” stage, where the perpetrator takes weeks, or even months, to establish trust with the victim through common interests or ambitions. As the victim lets their guard down, the scammer prepares to lure them into investing in crypto.
3. Introducing the investment opportunity – With a sense of security and familiarity fostered, the perpetrator informs the victim of an investment opportunity with huge gains. The scammer directs the victim to a fraudulent platform, which is under their control.
4. The hook – This is called the “pig feeding” stage, where the victim’s small initial investment bears significant returns in a short period. This convinces them of their earning potential, tricking them to start making significant investments. 
5. Pig butchering (the exit) – The scammers exit the stage once they’ve collected significant funds from the victim and disappear without a trace. In short, the pig is ultimately slaughtered, leaving the victim empty-handed.

How To Avoid Pig Butchering Scams

Some ways to avoid Pig Butchering scams include:

• Verify identities – Be cautious of individuals you interact with on social media or dating apps, since the perpetrators often steal profiles and photos to establish trust with their targets.
• Question risk-free high-return opportunities – Crypto investment opportunities that promise huge returns with little to no risk, persuading you to act fast, are probably a scam.
• Trust your intuition – If something feels off about an online connection or investment opportunity, don’t hesitate to decline the offers.
• Research platforms – Pig butchering scammers often create convincingly fraudulent platforms. Thus, do your due diligence before investing in any platform.
• Safeguard your personal details – Protect your financial and personal information, as scammers can use it to exploit or extort you.