Context:
An online financial fraud called Pig Butchering Scams are increasing across the globe, including in India.
Relevance:
Facts for Prelims
About the Pig Butchering Scam
- Also Known As: The “sha zhu pan” scam.
- Type of Fraud: An online investment fraud where scammers create fake online identities to lure victims into fraudulent investment schemes.
- Origin of the Term: The term “pig butchering” refers to the scammers’ tactic of “fattening up” their victims by building trust over time before “slaughtering” them and stealing their money.
How It Is Carried Out
- Initial Contact: The scam begins with the “host” reaching out to potential victims through social media, dating apps, or deceptive messages.
- Establishing Trust: Once a target, known as the “pig,” is identified, the host builds a false sense of friendship and encourages them to explore cryptocurrency trading.
- Fraudulent Trading App: The host uses a fake trading app to deceive the victim into believing they are making profits from fabricated trades.
- Increasing Investment: As the victim’s trust grows, the host persuades them to invest more money, a process known as “fattening the pig.”
- Withdrawal Attempts: When victims try to withdraw their funds, the fake platform either provides excuses or imposes substantial fees, ultimately revealing the scam. Due to the nature of blockchain transactions, recovering lost funds is extremely challenging.
-Source: The Economic Times
