Pig Butchering Scams: A Growing Threat to Financial Security

According to Cointelegraph, replying to a stranger’s message online could be the first step toward losing most of your life savings in a 'pig butchering scam,' one of the most widespread types of scams involving cryptocurrencies and conventional fiat money. More than $75 billion was stolen worldwide through this type of scam, according to a recent University of Texas at Austin study. This alarming trend has left many individuals, such as Daniel and Jose, with significant financial losses and lasting impacts on their lives. These scams not only target people’s finances but also prey on their trust and emotions. Scammers operate by slowly gaining their victims’ trust through unsolicited messages, often pretending to be someone they are not. By interviewing crypto investigators and scam experts, the psychological techniques used by fraudsters are uncovered, including creating a false sense of urgency and making their targets feel they need to act fast or miss out on a once-in-a-lifetime opportunity. These offers usually seem too good to be true — because they are. Besides pointing out the red flags to look out for to avoid these scams, it is also explained what victims can do to recover their stolen funds, although the options are limited.