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Pig Butchering Scam Explained: The fraud is believed to have started in China in 2016
The analogy to pig butchering comes from the fattening of swine before their slaughter. (Representative image)
A new cyber fraud known as “pig butchering scam” or “investment scam” has emerged, targeting unemployed youths, homemakers, students, and needy people who are made to lose large sums of money daily, according to the latest annual report of the Union home ministry.
The report said that cybercriminals have also been using Google services platforms to initiate these crimes.
“Google Advertisement platform provides a convenient facility for targeted advertisement from across the border. This scam, known as ‘Pig Butchering Scam’ or ‘Investment Scam’ is a global phenomenon and involves large-scale money laundering and even cyber slavery,” it said.
What Is a Pig Butchering Scam?
The pig butchering scam is a type of online fraud where scammers target victims through social engineering, gaining their trust and then manipulating them into investing money in fake cryptocurrency platforms or other fraudulent schemes. The name comes from the idea of “fattening up the pig before slaughter,” where scammers spend time building a relationship with the victim before ultimately stealing their money.
The pig butchering scam is believed to have started in China in 2016, and targets gullible individuals with whom cyber criminals build trust over time, ultimately convincing them to invest in cryptocurrency or some other lucrative scheme when their money is stolen.
To curb the menace, the home ministry’s Indian Cyber Crime Coordination Centre (I4C) has partnered with Google to share the threat intelligence for urgent action periodically.
How the Scam Works?
Scammers often initiate contact through dating apps, social media, or messaging platforms like WhatsApp and LinkedIn, posing as friendly or romantic prospects with seemingly successful lifestyles and shared interests. They build trust by engaging in frequent communication, sharing personal stories, photos, and fake success stories about investments. Once trust is established, they introduce the victim to a “great investment opportunity,” typically a fraudulent cryptocurrency platform, claiming it is highly profitable and even showing fake earnings.
To make the scheme believable, they allow small initial withdrawals, creating an illusion of legitimacy. Ultimately, the victim is persuaded to invest large sums, often draining savings or borrowing money, before the scammer cuts off contact, leaving the victim unable to withdraw funds or access the platform.
More Details From the Report
The report said that cybercriminals are using sponsored Facebook to launch illegal lending applications in India.
“Such links are proactively identified and shared with Facebook, along with Facebook pages for necessary action,” it said.
The report said WhatsApp remains the biggest social media platform possibly misused by cyber criminals in India.
The data published in the report on “cybercrime complaints where Big Tech platforms have been misused” shows that 14746 complaints were related to WhatsApp, 7651 against Telegram, 7152 against Instagram, 7051 against Facebook, and 1135 against YouTube till March 2024.
“Big techs play an important role in proactive identification and action on cyber criminals. I4C has partnered with Google and Facebook for sharing intelligence and signals for proactive actions,” the report said.
Why Is The Scam Effective?
Scammers exploit emotions, such as love, greed, or fear of missing out (FOMO).
They use psychological manipulation to gain trust and make victims feel secure.
The platforms they use often look professional and legitimate.
Red Flags:
- Unsolicited messages from strangers.
- Overly quick attempts to build personal or romantic connections.
- Claims of “guaranteed” high returns on investments.
- Being directed to unfamiliar investment platforms.
- Pressure to act quickly or invest more money.
How to Protect Yourself?
- Be cautious of unsolicited messages, especially on social media or dating apps.
- Research any investment opportunity thoroughly and independently.
- Avoid sharing personal or financial information with strangers.
- Never invest in platforms or schemes you cannot verify.
- Report suspicious activities to authorities and platforms.
If you suspect you’ve been targeted, report the scam immediately to your local cybercrime unit or the National Cyber Crime Reporting Portal (cybercrime.gov.in).
National Cybercrime Threat Analytical Unit
National Cybercrime Threat Analytical Unit (NCTAU) of I4C analyses the complaints reported on the portal and prepares analysis reports on the latest trends of cybercrime and misuse of services provided by service providers.
“These reports are shared with all the concerned stakeholders, i.e., banks, wallets, merchants, payments aggregators, payment gateways, e-commerce and other departments to take preventive measures and mitigate the misuse of their platforms/services,” the report said.
Cyber Volunteers
The ministry has also rolled out a Cyber Volunteer Framework, which enables citizens to enrol as cyber volunteers for reporting unlawful content on the Internet, dissemination of cyber hygiene and as cyber experts to aid law enforcement under which 54,833 volunteers had registered by March 31, 2024, according to the report.
The ministry’s integrated platform Citizen Financial Cyber Frauds Reporting and Management System (CFCFRMS), where all stakeholders, including law enforcement agencies of states/Union territories, all major banks and financial intermediaries, payment wallets, crypto exchanges and e-commerce companies, work in tandem.
The platform ensures quick, decisive, and system-based effective action to prevent the flow of money from the victim’s account to the cyber fraudster’s account and the seized money is restored to the victim following due legal process, it said.
“Since its launch in April 2021, so far this platform has been able to save more than Rs 16 billion from going into the hands of fraudsters, and thus benefiting more than 5,75,000 victims,” it said.
(With PTI inputs)
