Guest article provided by TrustCloud
Scammers target their victims on dating apps, leading them to lose significant amounts of money on fake cryptocurrency platforms. This is the pig butchering scam.
The pig butchering scam or Sha Zhu Pan, as it is known in China, is a financial scam that emerged in 2019 within the cryptocurrency environment. Cybercriminals build trust with their victims through social networks and dating apps, convincing them to invest in cryptocurrencies. The process can extend over months, in a slow and calculated execution where they manipulate the behaviour of individuals who fall into the trap. The graphic analogy with pig butchering refers to how scammers feed their prey until they achieve their goals.
Scammers adeptly use the illusion of lucrative deals and exploit emotional vulnerabilities. They convince victims to make substantial cryptocurrency deposits into seemingly legitimate platforms that are, in reality, under their control. The extended time frame, the use of social networks and dating apps, and the focus on the crypto market are the most distinctive features of the pig butchering scam.
Responsibility of all parties involved
To mitigate the consequences of this cybercrime and combat its criminal structures, users must be cautious. Key recommendations include not responding to messages or emails from strangers, avoiding the installation of investment or trading apps without reliable references, and gaining a clear understanding of how cryptocurrencies work before investing.
The responsibility for preventing this scam does not solely lie with users. Social media platforms and dating apps that allow these practices must enhance their commitment to customer protection. Applying clear privacy policies and relying on trustworthy technological providers is essential.
Social media and dating apps face a phenomenon that questions the security of their business model.
A dangerous activity with many facets
This dark business not only affects the “pigs.” Criminal organizations recruit vulnerable individuals, often with debts or family problems, to form “scammer farms.” These individuals are forced to participate in intense scam campaigns and face retaliation if they fail to meet economic goals. The criminals are often the other victims, mere pawns in a larger structure.
According to data from the Federal Trade Commission (FTC), “romantic” scams have experienced significant growth in recent years. Particularly, those involving cryptocurrencies represent 19% of total scams, ranking first in money diversion (34%), followed by bank transfers (27%). With the relentless increase in this scam, detecting red flags and avoiding investment without a deep understanding of cryptocurrencies are crucial actions to prevent its harmful consequences.
