What is the 'Pig Butchering' Scam?

The term "Pig Butchering" may sound peculiar, but it aptly describes how scammers "fatten up" their victims over time, only to later "butcher" them financially. This scam involves building a false sense of trust and emotional connection, often through social media or dating platforms. Eventually, the victims are coaxed into making fraudulent investments in fake cryptocurrency exchanges or stock trading platforms.

Modus Operandi: How the Scam Unfolds

1. Baiting the Victim: Scammers typically initiate contact through social media, messaging apps, dating platforms, or professional networking sites like LinkedIn. Conversations begin innocently and gradually evolve into a friendly or romantic relationship.
2. Building Trust ("Fattening Up"): Scammers invest time in building an emotional connection. They share fabricated personal stories and express genuine interest in the victim’s life to earn their trust.
3. Introducing the Investment Opportunity: Once trust is established, the scammer introduces a supposedly lucrative investment opportunity. They often claim success in cryptocurrency or stock trading, encouraging the victim to invest a small amount with promises of high returns and minimal risk.
4. Encouraging More Investment: Initial investments may yield apparent returns, further building the victim’s confidence. The scammer then persuades the victim to invest larger sums, claiming higher profits await.
5. The Butchering (Financial Exploitation): After extracting as much money as possible, the scammer disappears. The fake investment platform may shut down, leaving the victim with significant financial losses.

Precautions to Avoid 'Pig Butchering' Scams

• Be Skeptical of Unsolicited Investment Advice: Be cautious if someone you meet online offers investment opportunities. Scammers often target individuals seeking social or professional connections.
• Verify Investment Platforms: Conduct thorough research on any platform before investing. Check for proper registration, licenses, and reviews. Use search engines to find news related to potential fraud by adding "fraud" to the platform’s name in the search string.
• Limit Sharing Personal Information Online: Avoid disclosing too much personal or financial information to strangers online. Scammers exploit such information to manipulate their targets.
• Beware of "Too Good to Be True" Offers: High-return, low-risk offers are often scams. Consult a financial advisor or trusted family member before making decisions.
• Never Make Hasty Decisions: Scammers create urgency to pressure victims. Take your time and avoid making rushed investments. Block suspicious contacts or temporarily go offline to avoid pressure.

Illustration of How the Fraud Happens

Krishna’s Story: Krishna, a 32-year-old software engineer from Mumbai, began using a dating app where he met "Sophia," a seemingly friendly and successful trader from Singapore. After weeks of interaction, Sophia convinced Krishna to invest in a cryptocurrency platform. Initial investments of INR 10,000 yielded apparent profits, prompting Krishna to invest INR 5 lakhs. Eventually, the platform became inaccessible, and Sophia disappeared. Krishna was left financially and emotionally shattered.

Legal Remedies in India for Victims of 'Pig Butchering' Scams

1. File a Complaint with the National Cyber Crime Portal: Report the scam at https://cybercrime.gov.in/. This portal forwards complaints to the appropriate police jurisdiction and may freeze suspicious accounts.
2. Register an FIR: File a First Information Report (FIR) at your local police station. Provide all evidence, including bank transaction details and chat logs.
3. Legal Actions Under the Bhartiya Nyay Samhita (BNS): Scammers can be charged under various sections, such as cheating, criminal breach of trust, and forgery.

Stay Vigilant and Spread Awareness

Scams like "Pig Butchering" thrive on secrecy and manipulation. By spreading awareness and educating others, we can reduce the prevalence of such scams. Maintain communication with trusted friends and family regarding online activities and investments. Report suspicious activity to authorities and utilize platforms like cybercrime.gov.in to flag fraudulent websites, apps, or social media handles. Vigilance, skepticism, and informed decision-making are the best defenses against these scams.