The Pig Butchering Lifecycle
Organized criminals use a highly scripted process and human trafficking to get as much money as they can from individual victims.
“Pig butchering” refers to a sophisticated, devastating type of financial scam. The name comes from the practice of fattening a hog before slaughter, except the criminals are manipulating you to invest as much of your money as possible into fake cryptocurrency or other online investments.
These criminals are very good at what they do, combining elements of social engineering, romance scams, and investment fraud to steal millions of dollars each year.
Here’s how the pig-butchering lifecycle works:
1. Grooming the Victim
Scammers, often part of well-funded organized crime groups, contact targets through dating apps, social media platforms, or unsolicited text messages. At some point, the scammer encourages shifting the conversation to an encrypted messaging platform like WhatsApp or Telegram. They invest time in understanding the victim’s financial situation, family dynamics, and work to build a deep emotional connection.
2. Introducing Investment Opportunities
Scammers often begin dropping subtle hints about a lucrative investment opportunity early in the relationship, like breadcrumbs during the 'getting to know you' phase. Once scammers have gained a victim’s trust, they introduce what appears to be a lucrative investment opportunity, often claiming that they’ve achieved significant financial success through it.
3. Establishing Credibility
To make the scheme seem real, scammers share fake screenshots and trading-platform dashboards, stories of friends or an “uncle” who knows how it all works and who made massive profits, along with professional-looking documents and websites.
4. Starting Small to Ease Doubts
Understanding that victims may be skeptical, scammers encourage a small investment to build confidence. In some cases, they have the victim “test it out” using the same platform — only with fake money — to help them get familiar with how it works and build comfort with the process. After the first deposit, scammers generate fake returns that quickly show impressive “profits,” often accompanied by just enough technical jargon to sound convincing.
5. Using Psychological Pressure
Scammers apply subtle pressure to encourage large investments. They may warn that the opportunity is time-sensitive or that delays could result in missing out. They reference market trends, insider tips, and limited-time windows to create urgency. Having already formed an emotional bond, they may even suggest — directly or indirectly — that the relationship hinges on the victim’s continued participation.