Bank3 Technology Tip: Pig-Butchering Romance Scams
Safeguard your heart and your pocketbook!
We all know people that are looking for love. According to the National Council on Aging, “older adults are common online scam targets, since they are more likely to live alone and be isolated from family and friends.”
You may be asking…What exactly is pig-butchering? Why is it called that? How do I protect myself and loved ones?
Pig butchering scams, often referred to as “pig butchering,” are a type of financial fraud that has emerged prominently in the digital age. The name comes from the analogy of “fattening up” a victim before ultimately “slaughtering” them financially. These scams typically involve a prolonged process where the scammer builds a relationship with the victim, gaining their trust over time before leading them into a fraudulent investment scheme.
The process usually begins with the scammer creating a fake identity and reaching out to potential victims through social media, dating apps, or other online platforms. Once a connection is established, the scammer often engages the victim in friendly conversation, sharing fabricated personal stories to create a sense of intimacy and trust.
As the relationship develops, the scammer introduces investment opportunities that seem legitimate, often related to cryptocurrency, which has gained popularity and appears attractive to many investors. Victims are encouraged to invest small amounts of money initially, and they might see positive returns, which reinforces their trust in the scammer. However, as victims become more invested—both emotionally and financially—the scammer will persuade them to invest larger sums, eventually leading to complete financial loss when they can no longer withdraw their funds.
Victims may not realize they’ve been scammed until it’s too late, as the scammer often disappears once the money is transferred, leaving the victim with no way to recover their losses. This type of scam preys on individuals’ desire for connection and financial gain, making it crucial to approach online investments with caution and skepticism. Simply put: Scammers will throw every they’ve got in their arsenal to exploit victims, and it’s become a billion-dollar industry.
To protect against pig butchering scams, it’s important to verify identities, be wary of unsolicited investment opportunities, and avoid sharing personal information with individuals you meet online. Always conduct thorough research before making any investments, and consider seeking advice from a trusted financial advisor.
In a recent article featured in The Economist, “online scamming compares in size and scope to the illegal drug industry. Except that in many ways it is worse. One reason is that everyone becomes a potential target simply by going about their lives. Among the victims we identify are a neuroscience PhD and even relatives of FBI investigators whose job is to shut scams down. Operating manuals give people like Rita step-by-step instructions on how to manipulate their targets by preying on their emotions. It is a mistake to think romance is the only hook. Scammers target all human frailties: fear, loneliness, greed, grief and boredom. Another reason scamming is worse than drugs is that the industry is often beyond the reach of the law. In the physical world pig-butchers work from compounds that host production lines of scammers and are a cross between a prison camp and an old-fashioned company town, with supermarkets, brothels and gambling dens—as well as torture chambers for workers who cause trouble. Some of the profits buy protection from politicians and officials. In the Philippines a Chinese national called Alice Guo became the mayor of a small, run-down town and built a scamming complex there with about 30 buildings. Over $400m passed through her bank accounts in 2019-24. In Cambodia, Laos and Myanmar cybercrime is a mainstay of the economy. Scam states are likely to become even harder to deal with than narco states.”
Common Red Flags
Knowing the warning signs of an investment scam can help you spot con artists quickly and steer clear of their game.
Below are common red flags for financial investment scams:
- You receive a message out of the blue from someone you do not know.
- A message sender appears to be mistaking you for someone else, e.g.: Is this Nancy? It was nice meeting you at the bookstore the other night. (Only your name is Pat, and you haven’t recently been to a bookstore.)
- Someone you meet on a dating app seems overly eager to chat with you and wants to move the “relationship” along very quickly.
- In their online profile picture, or in a photo they send you, the new person you’re talking to online looks like a professional model.
- You make a virtual friend who almost immediately begins talking about impressive gains they’ve made with cryptocurrency. They may claim to have insider knowledge and can help you make a guaranteed profit.
- You’re talking to someone who asks you to move the conversation to WhatsApp, Telegram, or another type of messaging app.
- A friend you meet online refuses to engage in any type of video calling with you.
- A person you’re chatting with online asks a lot of questions about your personal life and financial situation.
- You’re invited by a new online friend to invest in specific financial products.
Outsmarting Romance Scammers
- Be suspicious if someone asks you for money. Requests for cryptocurrency, wire transfers, or gift cards are telltale indicators of a scam.
- Is the love interest in a faraway locale, or do they have reasons they can never meet in person? That’s a sign something’s not right.
- If you’re unsure if the person is legitimate, share with someone your trust for a fresh perspective.
- Scammers often push to move the conversation off social media and dating apps to other messaging applications, like WhatsApp – don’t do it.
- Do a reverse image search of a profile picture to confirm if the person is legit. When the details are mismatched, it’s not real.
- Report suspicious profiles to the dating app or social media platform where they’re located.