Amanda Ross

Staff Writer 

amr8469@psu.edu

The FBI has begun cracking down on a new, long term scam known as Pig Butchering. In this scam, victims are convinced to send large amounts of money overseas over a significant period of time. While victims may be able to withdraw money for a short period of time, eventually the money becomes inaccessible and is transferred out of the victim’s control. 

A Pig Butchering scam will typically begin with an online relationship. The goal of the relationship is to establish trust with the victim, so that when they eventually request money, it won’t alarm the other person. Many of the people who appear in these messages and profiles are victims themselves of human trafficking, with the majority of pig butchering scams being run by transnational criminal organizations in Southeast Asia. 

Once the scam has the victim’s trust, they begin to request money. They will often justify the request, framing it as covering their expenses or helping them save up to come see the victim. Another method is to say that the money is an investment, and will eventually be paid back. Over time the scam encourages the victim to send more significant amounts of money, with some even taking out loans or liquidating assets to send to their ‘partner’. After a satisfactory amount of money is taken, the money will be transferred to the organization and the profile will go dark. This can take months, or even years, leading victims into a false sense of security. Victims are left with little legal recourse, along with the social stigma of falling for such a scam, which can make it hard for those affected to be willing to speak to law enforcement. 

Pig butchering is especially common in crypto currency spaces. This is due to the high levels of capital that are required to participate in the popular currencies, like bitcoin and etherium. The crypto currency community is also known for discouraging calling new coins or ideas scams, which while helpful for projects just getting off the ground can make it harder to stamp out scams. Someone who points out an investment scam may be accused of spreading FUD, or fear, uncertainty, and doubt. Along with this, reversing a transaction on a block chain can be incredibly difficult, which decreases a victim’s chances of retrieving their crypto assets. 

To avoid a pig butchering scam, make sure to exercise caution in regards to investment and relationship opportunities. If an investment’s profit sounds too good to be true, it most likely is. As well, make sure to be careful with how much money you give someone, even if you are in a relationship with them. If you believe you have been the victim of a scam, please visit The FTC’s “What to do if You Have Been Scammed” site.