What is a ‘pig slaughter’ crypto scam?

Cryptocurrency is full of scams – we all know this to be true. Everyone has heard the horror stories: “the carpet pulls,” “pump and dumper“, the typical”investment” tricks that leave your bank account high and dry. But there’s a new kind of scam going around, and it sounds pretty weird: it’s called “pig slaughtering,” and you definitely want to avoid it.

Also known by its Chinese translation “Shāzhūpán”, “pig slaughter” is a bizarre combination of one romance scam and a investment scheme– a calculated game of manipulation designed to exploit lonely netizens and take them for everything they have. The trend originated in Southeast Asia, and the name refers to the way pigs are “fattened up” before they are finally taken away for slaughter. In this case, the pigs (victims) are “slaughtered” when the fraudsters succeed in convincing them to invest in a fake cryptocurrency platform, then disappears with his money. Charming stuff, isn’t it?

Reports of these scams also seem to be increasing. The FBI has apparently received so many lately that earlier this year it released one PSA warning about them. It also issued another notice earlier this week about fake cryptocurrency exchanges– which is a common feature of the scam.

The most bizarre part of the sinister new trend is the fact that many of the scams are being pushed by Asian crime syndicates, who force hordes of trafficked hostages to commit the scams at gunpoint.

Fortunately, the trend has also changed a lot media coverage, while the authorities try to get the word out. Given the weirdness of this one, we thought we’d make our own little explanation. Here’s a quick look at crypto scams that you’ll want to avoid at all costs.

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Dating apps, crypto and organized crime

A pig slaughter scam has a few basic elements. Each individual piece is not that different from many other crypto scams, although they offer a harmful brew when mixed together.

The big lines go something like this:

• The scammer targets a victim on a dating app such as Tinder and initiates a romantic relationship that is entirely online
• Through online chat, a level of trust is established
• Inevitably, the “lover” encourages their target to invest in cryptocurrency, usually directing them to a fake website or app secretly controlled by the scammer
• After the victim agrees to invest some money in the fake platform, the lover disappears (along with the money) – never to be seen again

One trialfiled by a “slaughtered” victim vividly describes the scam: “The scammer showers the victim with messages of love and affection to emotionally ‘fat them up’ – similar to fattening a pig … before luring the victim into investing in a fake [crypto] company and, metaphorically, slaughtering the victim.” Sounds pretty gross.

Yet the strangest part of “pig slaughter” is probably less the ongoing manipulations used and more the cruel criminal organizations behind them. Vice reports that many of these crime rings are based in Laos, Cambodia, Myanmar and other parts of Southeast Asia, where they operate “industrial-scale fraud centers” that work around the clock to find new victims. These dark versions of customer service centers function similarly to corporate offices, except for the fact that all employees have been kidnapped and forced to commit fraud via violent coercion. Vice reports:

Support [fraud] the industry is thousands of people trapped in a cycle of human trafficking, debt, forced labor and violence; people from across the region lured by fake job ads to fraud centers in Laos, Myanmar and Cambodia, where they are forced to carry out the kind of fraud used on Tsai.

Like regular call centers, these employees are given detailed scripts on how to target specific “types” of vulnerable individuals. They are then asked to cultivate relationships and try to suck their money out of them with crypto-related scams. Survivors of these outfits describe long hours and abusive treatment. Terrible videos have circulated social media (also shared in Vice’s report) showing shackled young men being electrocuted in what appear to be some of these scam connections.

Widespread abuse

In the meantime, the victims of these scams run – and horror stories abound.

A YouTube user, “Scammedbaby,” explains i a video posted last November how he was targeted by someone he met on Grindr. He met this person not long after going through a breakup: “I had just gotten out of a relationship that didn’t work out…so I was kind of vulnerable,” he said in the video. “When I met ‘Carl’ he said, ‘I’m looking for a girlfriend’ and I said, ‘Okay, that’s what I’m looking for too’.”

This mysterious “Carl” courted his target and told Scammedbaby that he was a wealthy restaurant owner and that he had made a lot of money investing in cryptocurrency. Unfortunately, “Carl” turned out to be a completely fictitious character invented to get Scammedbaby out of thousands of dollars.

On Reddit you can find in the meantime similar stories. In April, “u/AcceptableList2472” reached out to the community for help — admitting they had found themselves caught in a scam and wanted to figure out how to get out:

I have fallen for a pork butchering scam, but the scammer doesn’t know that I know. I’m hoping someone has some advice on how to get my money back. I’m pretty deep in and have sent quite a bit of money. I don’t think my scammer knows I’ve caught on and I’ve been talking to him normally even after I found out.

Has anyone managed to get their money back and have any advice on how to do it?

As with most scams, the best defense is probably to never invest in the first place. However, if you feel you have been the victim of one of these scams, you are encouraged to report your experience to the FBI at their web portal for complaints and assistance.