A new type of scam has emerged in the #Crypto world: PIG BUTCHERING SCAMS.
Forbes recently wrote about a man who lost $1 million from this 'super scam'
Let's take a deep dive to understand the pig butchering scam
(no animals were harmed in the making of this thread)
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Have you ever received a "Hi" from an unknown contact with an attractive profile picture?
Well, if you haven't and are unaware of it, you'll likely become a victim of the PIG BUTCHERING SCAM
In 2021, losses from pig butchering scams alone totaled ~$10 billion
But what's the meaning behind "PIG BUTCHERING SCAM"?
It is a metaphor that refers to the practice of fattening a "pig" before "butchering" it.
The practice originated in countries in South East Asia, notably China.
In the world of #cryptocurrency, the pigs refer to the victims who are convinced to invest large sums (being fattened) and then scammed (butchered)
These operations are not handled by individuals but rather as a business with employees and offices
How Do Pig Butchering Scams Work?
Pig butchers build a fake identity using stolen images and portray a luxurious lifestyle on their social media accounts
They portray themselves as someone who earns $1 million per month
Once they have setup their fake profile, they begin to send messages to people on Telegram groups, Discord servers, WhatsApp chats, Instagram DMs
They build a relationship with the victim before talking about financial investments
The butchers talk about life, family, commitments, work to understand the victim's weak points
They gradually earn the victim's trust by discussing emotional topics and sympathizing with them
Once they have gained the trust of the victim, they take advantage of their weak points by offering to help the victim trade or invest money
They show screenshots of their successes in order to persuade the victims to open an account with an online brokerage
The victims will usually have no idea that the brokerage is simply a hoax
Scammers create online brokerages that appear legitimate in order to deceive victims into thinking they are successful in making a lot of money
In the early stages, the victim will usually be able to withdraw their funds from the platform
This gives confidence to the victim that the platform is trustworthy, allowing them to be comfortable with investing a lot more money in the future
Once the victim agrees to learn from the "Professional Trader," the scammer will guide them to wire funds from their bank account to the fake brokerage
The scammer's brokerage will show a fake profit on the victim's investments to entice them to "invest" more
Scammers convince victims that investments are risk-free and persuade them to take out loans in order to make larger investments
Once the victim has "invested" a significant amount of funds and is unwilling to add more, the process moves on to the last phase of the scam
The last phase of the scam is when the victim realizes that they have been scammed
They realize this after not being able to withdraw funds from the brokerage
Alternatively, they realize when the brokerage account shows a big "loss" and a negative equity balance
When the victims question the scammers, they usually don't reply or ask them to pay "fees" & "taxes" if they want their initial investments back
Sadly, the victim is unaware that the "fees" and "taxes" are just another way to get you to deposit more money
What are the characteristics of "Pig Butchers"?
- They try to talk with you every day
- They inquire a lot about your personal life and insist on helping you
- They urge you to have big dreams of making more money
- They have attractive profile pictures
- Even if you accuse them of being rude and unhelpful, they give the impression of being helpful and kind
- They showcase a luxurious lifestyle on their social media
- They are always available to chat, even at seemingly odd hours
- They invite you to "check out" their trading website
- They show you numerous screenshots of their successes to convince you that you can also make outrageous sums of money in a short period of time
- Never share your financial data with anyone on the internet
- Be cautious when you respond to anonymous DMs
- Anyone who promises to "make a million dollars for you, if you invest a tiny sum" should be blocked
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