Cybercriminals are increasingly using a sophisticated fraud technique known as ‘pig butchering’ to cheat people of their savings through fake cryptocurrency investments, often after spending weeks or months building personal relationships with their targets.
The scam typically begins with an unsolicited message on social media, WhatsApp or a dating platform. Fraudsters pose as friends, romantic partners or successful investors before gradually introducing lucrative investment opportunities. Victims are then directed towards fraudulent trading applications or websites displaying fabricated profits to encourage larger deposits.
According to the US Financial Crimes Enforcement Network (FinCEN), criminals sometimes permit small withdrawals to establish credibility. However, when victims attempt to withdraw substantial amounts, they are asked to pay additional charges under the pretext of taxes or processing fees. Eventually, the platforms disappear along with the money.
The scale of the fraud is illustrated by the case of former Heartland Tri-State Bank CEO Shan Hanes in the US. Prosecutors said he transferred $47.1 million in bank funds to cryptocurrency wallets controlled by criminals in 2023. He was sentenced to 24 years and five months in prison in August 2024.
The FBI and FinCEN have issued warnings about such schemes, while Interpol has advocated using the term ‘romance baiting’ to avoid stigmatising victims.
Experts have identified several warning signs, including unsolicited investment advice, unrealistic returns, unfamiliar trading platforms and demands for additional payments before withdrawals.
The fraud is also linked to organised scam centres across Southeast Asia, where trafficked individuals are reportedly forced to target victims worldwide.
Authorities advise people to independently verify investment platforms, avoid sharing wallet access and report suspicious transactions promptly. Victims should also beware of fraudulent fund-recovery services demanding advance payments.
