Pig butchering doesn’t always produce pork and bacon these days.
It also refers to a type of investment scam that originated in China and has since spread to other countries. It is called “pig butchering” because the scammers use a technique called “raising a pig” to lure unsuspecting investors/victims into slaughter or, in this case, into investing in a fake company or project.
Scammers approach victims with a promise of high returns on investment, often involving cryptocurrency or some digital asset. They create companies or fronts that render fake websites, documents, and marketing materials to make things seem legitimate. They are so convincing with their schemes that they can persuade victims to invest and send money via wire transfer, cryptocurrency exchanges, or even legitimate VASPs (Virtual Asset Service Providers).
However, before they go for the kill, the scammer “raises the pig” by sending the victim fake updates and reports showing the investment is doing well. The victim is convinced to invest even more money or risk being cut off from this fabulously profitable “investment.” Eventually, the scammer disappears with the victim’s money, leaving the victim with significant financial losses. The term “pig butchering” comes from the idea that the scammer is “fattening up” the victim like a pig, making them believe they are getting rich, before “butchering” them by taking their money and disappearing.
Pig Butchering Scams Case Study: PlusToken
The biggest pig butchering scam ever recorded is the PlusToken scam, which was uncovered in 2020. PlusToken was a cryptocurrency Ponzi scheme that defrauded an estimated 3 million victims worldwide, with losses totaling around $3 billion. The scam was operated by a group of individuals based deep in China.
The scammers used social media and online marketing to lure victims and even created a fake cryptocurrency exchange to make the scheme appear legitimate. Ultimately, Chinese authorities uncovered the scam and arrested several individuals involved. However, much of the stolen funds were laundered through cryptocurrency exchanges and remain unaccounted for and unrecovered to this day.
The PlusToken scam is considered one of the largest cryptocurrency frauds in history, and its impact was felt across the global cryptocurrency market. There is much professional speculation that PlusToken even led to significant drops in the price of BitCoin.
What Can You Do to Avoid Being Pig Butchered?
- Always remember, if an offer sounds too good to be true, it is!
- Be cautious of unsolicited job offers or promises of easy money, especially if they appear on dating apps, social media, or out of nowhere text messages.
- Research the company and website thoroughly, checking for reviews, ratings, and a physical address.
- Never download software or click on links.
- Keep your antivirus software and operating system up to date.
- Use strong passwords and don’t pass on multi-factor authentication when it is available. There are great security tools available to you—don’t be afraid to use them!
- Ask your IT team about continuous monitoring. These devices stay on guard 24/7/365, always looking for suspicious activity.
When it comes to sophisticated scams like pig butchering and other forms of social engineering, prioritize caution and protect your online security and your money. Security awareness is crucial for a cybersecure system!
At Commonwealth Sentinel, we can evaluate your existing IT security and work with your team to improve it. We can also provide a complete source of services. At Commonwealth Sentinel, we stay focused on cyber security so you can focus on other things. Contact us today or sign up for a free consultation.
At Commonwealth Sentinel, we stay focused on cyber security so you can focus on other things.