A new cyber fraud scheme, commonly referred to as the “pig butchering scam” or “investment scam,” is targeting vulnerable groups such as unemployed youths, housewives, students, and financially distressed individuals. According to the Union Home Ministry’s latest annual report, victims are being manipulated into losing significant sums of money daily.

What is pig butchering scam

The “pig butchering scam” is a type of cyber fraud that involves scammers building a long-term relationship with victims to “fatten them up” emotionally and financially before exploiting them. The name originates from the metaphor of fattening a pig before slaughter. It is believed to have started in China in 2016. Here’s how it typically works:Scammers reach out to potential victims through social media platforms, messaging apps, dating sites, or even email. They often pose as friendly strangers, potential romantic partners, or financial advisors. The scammer spends weeks or even months gaining the victim’s trust by engaging in frequent conversations and forming a personal connection. This is the “fattening” phase.

Once trust is established, the scammer introduces the victim to fake investment opportunities, often in cryptocurrency or stocks, claiming high returns with little to no risk. Victims are initially allowed to make small profits to further convince them of the scheme’s legitimacy. This encourages them to invest larger sums.

When victims try to withdraw their earnings or recoup their investments, they are blocked, ignored, or asked for additional “fees.” By this stage, the scammer disappears with the money.

WhatsApp most-abused by cyber criminals

The report states that among social media platforms, WhatsApp remains the biggest social media platform that is possibly misused by cyber criminals in India. It adds that the cybercriminals are using sponsored Facebook to launch illegal lending applications in the country.

“Such links are proactively identified and shared with Facebook, along with Facebook pages for necessary action,” the report says.

The data shows that 746 complaints were related to WhatsApp, 7651 against Telegram, 7152 against Instagram, 7051 against Facebook, and 1135 against YouTube till March 2024.

The report also highlights that cybercriminals are leveraging Google services and platforms to initiate and execute these scams, raising concerns about the increasing sophistication of such fraudulent activities.

“Google Advertisement platform provides a convenient facility for targeted advertisement from across the border. This scam, known as ‘Pig Butchering Scam’ or ‘Investment Scam’ is a global phenomenon and involves large-scale money laundering and even cyber slavery,” it said.