Lies and Crypto: The Brutal Truth Behind Investment “Pig Butchering” Scams
In the ever-evolving world of online scams, a sinister new tactic is making headlines—and draining bank accounts. It's called the Pig Butchering Scam, and despite its strange name, there's nothing humorous about it. Combining the emotional manipulation of romance scams with the financial trickery of crypto fraud, this scheme is leaving victims devastated both emotionally and financially.
The term “pig butchering” comes from a metaphor: the scammer “fattening up” the victim—like a pig—over time with affection and false promises, only to “slaughter” them by stealing their money. It’s a slow-burn, highly manipulative process.
New Federal Trade Commission (FTC) data reveals a record breaking $12.5 billion lost to fraud in 2024, a 25% increase from the previous year. In March of 2024, the FBI published a report that financial scams had risen by 53% since 2023 and that investment scams resulted in $4.7 billion dollars in losses for Americans. According to the FTC, median loss for investment fraud was $9,196.
How the Scam Starts
These scams often start innocently: a text message sent to the wrong number, a friendly DM on Instagram, or a match on a dating app. The scammer pretends to be attractive, kind, and emotionally available. Over time, they build trust and rapport, sometimes chatting for weeks or months. Then, the pitch comes.
They introduce the victim to what appears to be a profitable crypto investment opportunity. They may even walk them through a few small wins using a fake trading app or site. Once the victim is “hooked,” they invest more—sometimes tens or hundreds of thousands of dollars. Then suddenly, withdrawals are blocked. The app stops working. The “partner” disappears, and the victim is left with nothing.
The process by which the money is transferred varies. Some scammers will walk the victim through opening a cryptocurrency account online. Others may have the victim go to their financial institution and do a wire transfer to a shell company the scammer has established. Some are even bold enough to ask you to send them cash in the mail.
How to Protect Yourself:
If you receive a call, text or email from someone you don’t know, don’t reply. Block the number if possible.
Be skeptical of investment advice from online strangers. They “bank” on earning your trust early so they can take advantage of you later.
Verify everything. Before sending money, Google the site, check for reviews and red flags.
Talk to someone! Ask your friends and family or a financial advisor before investing large amounts of money in something you may know little to nothing about.
What To Do If You Suspect a Scam:
Investment scams can happen to anyone, regardless of your education or background. If you think you’ve been targeted by a scam like this, talk with someone you trust. Keeping the information to yourself only protects the scammer. If you have made payments or shared your personal information, it’s crucial to act quickly. Contact your local law enforcement if you’ve been scammed.