Pig Butchering Scam: Online Investment Fraud
An online financial fraud called the Pig Butchering Scam is increasing across the globe, including in India.
- Pig Butchering Scam is also known as a “sha zhu pan” scam, which is a type of online investment fraud that involves scammers creating fake online personas to lure victims into fraudulent investment schemes.\
- The term “pig butchering” comes from the scammers’ practice of “fattening up” their victims by building trust over time before “slaughtering” them and stealing their money.
- It all begins with the “host” contacting people online through social media, dating apps, or deceptive messages.
- Once they’ve found a target, known as the “pig,” the host establishes a false sense of friendship and encourages them to explore cryptocurrency trading.
- Using a fraudulent trading app, the host deceives the victim into believing they’re making profits from fabricated trades.
- Gradually, as the victim’s trust grows, the host persuades them to invest more money, a tactic referred to as “fattening the pig” before the scam is revealed.
- When victims attempt to withdraw their funds, the fake platform either makes excuses or imposes substantial fees, ultimately exposing the scam. Retrieving lost funds is exceedingly difficult due to the nature of blockchain transactions.
