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Source-This post on Pig Butchering Scams is based on the article “Pig-butchering stock market get rich quick scam: Telegram, Instagram, WhatsApp used to steal lakhs from investors; tactics used, how to stay safe” published in “Economic times” on 22nd May 2024.
Why in the News?
Pig Butchering Scams are on the rise globally including in India. It is a type of online financial fraud.
About Pig Butchering Scam
1. About Pig Butchering Scam: It is also known as a “sha zhu pan” scam. It is a type of online investment fraud.
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.
2. Execution Method:
a) Scammers, or “hosts,” initiate contact through social media, dating apps, or misleading messages. The host establishes a fake relationship or friendship with the target, referred to as the “pig.”
b) The scammer introduces the concept of cryptocurrency trading to pique interest. Victims are directed to a fraudulent trading app, where they are misled to believe they are making profitable trades.
c) As trust builds, the scammer persuades the victim to increase their investment, effectively “fattening” them for the scam. When victims attempt to withdraw funds, they face excuses or high fees from the fake platform, revealing the scam’s true nature.
3. Challenges in Fund Recovery: Due to the irreversible nature of blockchain transactions, recovering lost funds is often extremely challenging.
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