Key Takeaways
- Alabama securities regulator has recovered over $125K worth of crypto for two victims of pig butchering romance scams who lost over $850K.
- The scammers convince victims to invest in fraudulent trading platforms after months of pretending to be in an online relationship.
- Pig butchering scams accounted for at least 33.2% of the $9.9 billion in global crypto fraud reported in 2024, with criminals now conducting shorter cons to target a greater number of victims.
Securities regulators in Alabama have seized crypto assets worth at least $125,000 on behalf of two residents who fell victim to elaborate pig butchering scams that cost them over $850,000 in total.
According to an official statement from the office of the securities regulator, the commission was able to recover on behalf of a Baldwin County resident who had been scammed of approximately $185,000 and $73,927.68 for another Etowah County victim who was defrauded of $395,000 in separate schemes. The victims met the scammers on dating apps and messaging platforms earlier this year.
Claimed Association with Charles Schwab and SEC Registration
After meeting the scammer on the Bumble dating app, the first victim was convinced to buy and transfer over $185,000 in cryptocurrency to what appeared to be a genuine cryptocurrency trading platform. Nonetheless, that was a crypto wallet owned by the criminal. The truth about the con game was revealed when she attempted to withdraw her investment after it had grown to over $433,000. The scammer asked her to send additional funds to cover taxes, which is a common red flag that prompted her to contact the authorities.
The second victim encountered the scammer through a WhatsApp advertisement and was convinced to invest $395,310 in a fraudulent platform that falsely claimed association with Charles Schwab and SEC registration. The financial services firm reported suspicious activity when the victim attempted to make large withdrawals for cryptocurrency investing.
Exploit the Victims’ Emotions
Pig butchering scams have emerged as the fastest-growing form of crypto fraud, exploiting both the anonymity of digital assets and victims’ emotions through carefully orchestrated romance schemes. The scammers exploit the victims’ emotions through carefully orchestrated romance schemes. These scams have become a significant form of crypto fraud, with criminals leveraging the irreversible nature of crypto transactions and their cross-border capabilities to steal billions from unsuspecting individuals.
Federal authorities are now stepping up enforcement against the infrastructure enabling these scams. In March, the U.S. Treasury sanctioned a Philippine-based technology company and its Chinese administrator for facilitating pig butchering and other crypto fraud schemes that defrauded Americans of more than $200 million. According to ASC Director Amanda Senn:
“The ASC continues to see an increase in cryptocurrency fraud, including ‘Pig Butchering […] most cybercrimes originate overseas and the transactions are instant, making it nearly impossible to apprehend the criminals or recover funds.”
Conclusion
According to a Chainalysis February 2024 Crime report, crypto scams recorded at least $9.9 billion globally in 2024, with pig butchering accounting for 33.2% of all scam revenue. The ASC has urged the immediate reporting of suspected fraud, emphasizing that delays significantly reduce the chances of recovery. While pig butchering revenue grew nearly 40% in 2024, the number of deposits surged 210% year-over-year, with average deposit amounts declining 55%. This suggests, therefore, that criminals are conducting shorter cons to expand their victim pools rather than the traditional months-long relationship-building.
Frequently Asked Questions
What is the meaning of a pig butchering scam?
The term “pig butchering” originates from the Chinese phrase “shu zhu pan.” For the scammers, the “pig” is a victim to be fattened up for slaughter so the scammer can siphon off as much money as possible.
What is the pig butchering strategy?
Pig butchering scams are a form of investment fraud in the cryptocurrency space, where scammers build relationships with targets through social engineering and then lure them into investing in fake opportunities or platforms created by the scammer.
How to avoid pig butchering scams?
Crypto users must remain vigilant for common red flags to safeguard themselves. These mainly include unsolicited messages from strangers. Scammers may falsely claim they sent a message to you by mistake to initiate a conversation.
