Understanding "Pig-Butchering" Scams

"Pig butchering" scams, also known as approval phishing, have been on the rise and involve fraudsters encouraging victims to authorise the transfer of large sums of money for cryptocurrency investments.

How It Works

This technique originated in China and gained global traction during the coronavirus pandemic. Criminal gangs often use human trafficking victims in boiler rooms to operate these scams.

Building a Relationship of Trust

Fraudsters typically initiate contact with their targets through social media or dating sites, gradually building a relationship of trust over months. Once they have gained the victim's trust, they introduce an investment scheme.

The Scam Process

Initial Small Transfer:

• Victims are invited to transfer a small amount into a cryptocurrency account. The fraudster then repays a larger sum to "demonstrate" the potential gains.

Approval Document:

• To further legitimise the scam, fraudsters may ask you to fill out documents or other forms, such as approval documents. Always be critical of such requests, as they could give the scammer access to your funds.

Further Investments:

• Victims, believing in the legitimacy of the scheme and fearing loss of their initial investment, often invest even more money quickly. This leads to significant financial loss as the fraudster makes off with their savings.

Target Demographics

Victims are often young or old people, lured by the prospects of finding love online, getting rich quickly, or being able to capitalise on unique/time-limited offers that appear too good to ignore. The fear of losing the money already invested drives them to invest more, ultimately losing everything they have.

Protecting Yourself

To safeguard against "pig butchering" scams:

• Be cautious of unsolicited contacts on social media or dating sites
• Remain vigilant about the information you see, even when it appears to be coming from people you trust. Fake giveaways from hacked social media accounts have proved to be a very popular type of scam. 
• Avoid transferring money or sharing personal or financial information with individuals you have not met in person.
• Do not sign any documents authorising financial transactions without thorough verification.
• Consult with a trusted financial advisor before making any investments.

If you suspect you have been targeted by a scam, contact our support team at support@coinmart.nl for assistance and reach out to the appropriate authorities.

For any further questions or concerns, please reach out to our support team. We are here to help you stay informed and protect your assets.