Pig butchering – how to spot and report the scam

Pig butchering is an investment scam where fraudsters gain the trust of victims over time and then deceive them into investing in fake cryptocurrency or another fraudulent investment opportunity. The term refers to the agricultural practice of fattening pigs before slaughter, symbolizing how scammers “fatten” their victims with false attention before exploiting them financially.

How do pig butchering scams work? 

Scammers use a variety of methods to contact their victims through text messages, dating apps, and social media. They may ask to take the conversation “offline” to a messaging platform like Whatsapp or WeChat.

These messages may seem harmless, but they are designed to build ongoing communication. Scammers may spend weeks, or even months, in casual conversation before introducing the scam. They may show off a lavish lifestyle to appear successful, which often leads to conversations about investing.

Once the scammer has the victim’s trust, they will propose an investment opportunity related to crypto assets. They may offer to train the victim on how to set up an account on an exchange to purchase crypto assets. Then, guide them to convert their cash into crypto through a publicly known exchange, ATM, or digital wallet service and transfer it to a fraudulent platform. These crypto services are generally not in on the scam. They are just channels used by scammers to carry out their schemes.

Look out for fake websites and trading platforms

To participate in the investment opportunity, scammers will provide a website or wallet address for the victim to transfer funds. The fake platform often promises huge returns in a short period of time.

These fraudulent platforms are designed to look and function like a real trading platform. They may be available on the Apple App or Google Play stores. They may even display artificial gains designed to keep victims engaged and possibly deposit more funds.

However, the victim is never able to withdraw their funds from the site. Or they may be asked to transfer even more funds before anything can be withdrawn through a variety of excuses, such as service fees, IRS taxes, etc. This buys time for the scammer to make off with stolen funds and shut down the platform.

Reporting crypto scams 

It is important to submit a compliant with the DFPI on crypto scams quickly. In order to find your crypto on the blockchain, you must provide complete and accurate information. The types of information investigators will request include:

• Identifying information about the scammer(s). Although the profiles of the scammer(s) may be fake, any information can be useful, such as phone numbers, usernames, email addresses, and social media handles.
• Website addresses. Include all website addresses associated with the scam.
• Screenshots. Provide clear screenshots from your computer or screen grabs/recordings from your phone of the scammer’s social media profile.
• Transaction details. Always keep records of financial transactions, especially with cryptocurrency. To avoid errors, copy and paste this information into your complaint rather than type it manually. For each transaction, provide:
• Date transaction(s) took place
• Amount(s) sent and type of digital asset (e.g. 0.5 ETH)
• Wallet address associated with the scammer
• Transaction hash/ID (or receipt) associated with the transaction

For example: 

“12/22/24 – Sent 0.5 ETH to 0x…” 

“On Dec 22, 2024, I sent 0.5 ETH to 0x…”

“Sent 0.5 ETH, tx hash: 0x230q24f…23”

Before you invest, check our crypto scam tracker

Our Crypto Scam Tracker is a is a valuable resource for consumers navigating the risks associated with crypto investments. Find scam reports by company name, scam type, or keywords. It also has an accompanying glossary that defines common fraud tactics, equipping consumers with knowledge to recognize and avoid scams.