“Pig butchering” scams are a type of investment fraud and growing and insidious form of cybercrime. This unpleasant term refers to the farming practice of fattening a pig for slaughter. In this cybercrime, scammers coax victims to make increasing financial contributions over time before scammers “harvest” the gains. Scammers socially engineer their targets by posing as a new friend, financial expert or romantic interest. They build relationships with their targets using flattery and fictitious success stories.
These scams often involve cryptocurrency but are not limited to digital assets. Because of its effectiveness, a study from the University of Texas revealed that global losses from pig butchering investment fraud scams exceeded $75 billion in 2024 alone.
To avoid falling victim to this type of investment fraud, it’s important to understand how scammers operate.
How Does a Pig Butchering Investment Fraud Scam Work?
Initial Contact: The scammer sends a message through social media, dating apps or even a “mistaken” text message. The scammer may say, “Hey! Is this Sarah? I think I saved the wrong number,” or “Hi there! I’m new to this app — just looking to make some new friends,” or use flattery to quickly build rapport with, “I don’t usually message first, but you seem different.” If the recipient responds, it opens the door to deeper interaction.
Grooming Phase: The scammer will communicate regularly, building rapport and trust with their target. They send “good morning” messages, ask about the victim’s day, or cultivate a romantic connection. The practice of “love bombing” is common, whereby the target is showered with excessive adoration, attention and flattery to create the illusion of intimacy. The goal of love bombing is to lower the victim’s guard and create a heightened emotional state before making their sales pitch.
Investment Hook: With trust established, the scammer introduces their “successful” track record in finance or investments and generously offers a lucrative investment opportunity involving cryptocurrency or foreign exchange trading. They may say, “I earned a 20% return on a crypto investment in just two weeks. No pressure, but I’d be glad to show you how I did it.” The scammer “proves” their success by providing doctored screenshots, polished reports or fake testimonials.
If the target agrees, they will be instructed to create an account on a seemingly legitimate website or app, wire transfer money to shell companies, or send funds through legitimate virtual asset service providers or cryptocurrency exchanges. In some cases, scammers even use legitimate apps or websites that are linked to a fake online brokerage or an account that goes directly to the scammer.
Fattening the Pig: Now that the victim is embroiled in the scam, they are advised to make small, low-risk investments at the start. The scammer makes sure the victim sees (falsified) profits — either provided by the scammer or by the dashboard of a fake app or website. Encouraged by these “profits,” the victim invests increasingly large amounts, which is when the scammer vanishes with the invested funds.
Alternatively, the victim may be unable to withdraw their money, experience a perceived “loss” that wipes out their investment, or be required to pay fees (to the scammer) to resolve a “tax problem.” In each case, the scammer disappears with the money and restarts the process with another target.
Why Are Pig Butchering Investment Fraud Scams Effective?
Scammers are experts at social engineering – the practice of using psychological manipulation to influence a person to do something that is not in their best interest. By slowly building trust and cultivating romantic connections, pig butchering targets may not see the red flags when the investment con is introduced. The victim usually feels they’re working with a trusted friend instead of a cybercriminal.
How Can I Avoid Pig Butchering Scams?
- Ignore unsolicited contacts. Don’t exchange messages with strangers — particularly if they seem overly friendly or romantic.
- Research thoroughly. Only download apps using trusted app stores, like the Google Play or the Apple App Store. Check reviews before downloading something and always be aware of what information apps can access on your device. Check to see if investment websites or apps are registered with official regulators such as the Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA).
- Study common tactics used by scammers. If you understand how scammers try to manipulate you with tricks such as love bombing, guilt or a sense of urgency, it’s easier to recognize and resist them.
- Keep your loved ones informed about your planned investments. It’s common for scammers to isolate victims to avoid scrutiny. But if you talk openly with people you trust, it’s easier to stay grounded and spot red flags you might have missed.
What Should I Do If I’m Targeted by a Pig Butchering Investment Fraud Scam?
Here are four things you should do if you have been victim of a pig butchering scam:
- Block the scammer immediately on all channels.
- Contact your bank or financial institution immediately and stop any additional transactions.
- Report the incident to local law enforcement, file a fraud report with the Federal Trade Commission. and submit a complaint through the FBI’s Internet Crime Complaint Center (IC3).
- Save relevant documentation such as text messages, screenshots and financial records to help investigators.
Pig butchering scams work because they lower a person’s guard through cultivating trust and emotional manipulation. But some of the most dangerous threats are packaged in charm and a fake sense of intimacy. Staying aware and vigilant can help you avoid becoming a victim of investment fraud.
To help safeguard your personal and financial information from scammers, explore the wide range of account security tools available from Zions Bank. And remember — whether by phone, online, or in person at your local branch, our Zions Bank team is always here to support you and answer any questions you may have.
