Crypto scams have become more personalized and difficult to detect. In this case, unlike theft through a single link or phishing email, the criminals may take weeks or even months getting familiar with their victims before requesting them to make investments.

This form of scam is commonly referred to as a crypto pig butchering scam. This particular type of fraud consists of elements of social engineering, fabricated relationships, and fabricated investment platforms. While the victims may think that they are earning profits, the criminals continue to encourage them to deposit more money.

This knowledge may assist crypto traders in identifying any potential scam.

What Is a Crypto Pig Butchering Scam?

Crypto pig butchery is an extended period of financial fraud that involves building trust with the victim and then pushing him or her to invest in an unreal crypto investment.

The term derives from the image of criminals “fattening up” the victim before they steal his or her money. The process is a lengthy one.

The perpetrators may approach their victims on:

• Dating websites
• Social networks
• Messengers
• Communities online
• Wrong number texts
• Professional networking sites

At first, the conversation will not be related to any cryptocurrencies. The scammers may just seek to establish themselves as a trustworthy acquaintance, love interest or online friend.

After building trust, the conversation will start to lead towards investing.

How Does the Scam Start?

The first step of the crypto pig butchering scam is normally all about developing the relationship.

A scammer can send a straightforward message like, “Hello, I believe I have the wrong number,” and continue the conversation after getting a response. Otherwise, they can act like they share common interests or are interested in dating.

The main thing here is that the scammer does not ask for money right away.

They try to learn everything they can about their potential victim. That way, they can ask about his work, financial aspirations, hobbies, past investment experience, etc.

Building Trust Before the Investment Pitch

The factor of trust plays an important role in such scams.

There will often be regular communication where the scammer attempts to demonstrate care and build trust with the victim. They may also share personal information, stories from their life, or pictures to create a stronger sense of familiarity and credibility. Readers looking for additional information on cryptocurrency risks, scams, and trading-related topics can also explore Bitavolt for further research.

If we speak about the romantic form of the fraud, then there may be established an emotional connection between the criminal and the victim. In another version, the scammer acts as a successful investor and tries to help the person to make money.

Once a sufficient level of trust is created, the scammer will bring up the issue of cryptocurrency.

For instance, he/she can claim to have found some trading technique that brings steady profit. In addition, he/she may offer to explain the process of work and even show the screenshots of his/her profits.

It is precisely because of this approach that such scams as crypto pig butchering are especially dangerous.

How Fake Crypto Investment Platforms Work

After luring someone to invest, the scammer would take him/her to a dummy website or app.

This dummy website/app could appear professional with features including:

• Account balances
• Charts for trading
• Profits
• Account history
• Customer care that is actually fake
• Investment plans
• Cryptocurrency values

The values in the dummy website could be totally fictional.

A potential victim might deposit $1,000 but will have an account balance of $1,500.

Seeing the supposed profits in his/her account, he/she will feel convinced about the success of the investment.

The scammer would ask him/her to make more investments..

Why Victims Keep Depositing More Money

One of the key factors contributing to the success of such scams is the fact that at first, the potential victim thinks they are dealing with a winning deal.

In some cases, even a minimal withdrawal may be allowed. This gives the victim a sense of trust and increases their faith in the legitimacy of the platform.

Once the victim feels at ease, the scammers start demanding huge amounts of money.

Such statements as:

• “You miss out on a good chance in the market.”
• “You should deposit more in order to get to the next level.”
• “The market situation changes very fast.”
• “You will earn more if you deposit additional money.”

can often be heard.

The victim keeps adding money because the fake platform keeps showing increasing profits.

This is when the crypto pig butchering scam starts causing financial damage to the victim..

The Withdrawal Trap

The problem often becomes clear when the victim tries to withdraw a large amount.

Instead of receiving their money, they may be told that they need to pay a fee, tax, deposit, or verification charge first.

For example, the platform might say:

“Your account has generated $50,000 in profits, but you must pay $5,000 in taxes before withdrawing.”

This is another scam.

After paying the first fee, the victim may be asked for another payment. The criminals can continue creating new reasons why the withdrawal cannot be processed.

Eventually, the scammer may stop responding or the fake platform may disappear.

Common Warning Signs

Recognizing the red flags will make it easier to spot a crypto pig butchering scam before making any payment.

New Online Acquaintance Talks About Cryptocurrency

Watch out when a person whom you’ve just started to talk about with on the Internet brings up the subject of crypto investments, trading, etc.

Just because one is successful in life, it doesn’t mean he or she must be good at finances.

Guaranteed or Excessively High Profits

One of the clear warning signs is guarantees of any kind.

There are many things which make cryptocurrency investments risky. Any promises about high earnings with low risks are very suspicious.

Rushed Investments

Another red flag – pressure.

The scammers may assure that there is only a limited time during which you can invest into their project to prevent you from researching the website further and asking other people for their opinion.

Fake Trading Platform or Website

Just because the site looks nice doesn’t mean it’s legit.

Research the company behind the website, its regulations, domain history, etc. before depositing any funds.

Additional Fee Requests Before Funds Are Withdrawn

If you are asked to make a huge payment before withdrawing your own investment money, then do some digging.

This is quite a common trait among investment scams.

The Individual Avoids Video Chats

Among relationship scams, the person may consistently avoid video chats or come up with an excuse for not meeting.

This doesn’t mean that the person is definitely a scammer, but when added to the investment requests, it’s a major red flag.

How to Protect Yourself

The best protection against a crypto pig butchering scam is to slow down and verify everything independently.

Never invest because someone you met online tells you that you will make easy money.

Before sending cryptocurrency, research the platform yourself. Do not rely only on links, screenshots, or information provided by the person who introduced you to it.

You should also:

• Never share your private keys or seed phrase.
• Avoid guaranteed-profit investment offers.
• Research unfamiliar exchanges and platforms.
• Check whether a company is properly registered or regulated where applicable.
• Do not send crypto to wallets controlled by online acquaintances.
• Be careful with unsolicited investment advice.
• Discuss large investments with someone you trust.
• Never pay additional money simply because a platform claims it is required to release your funds.

Most importantly, remember that cryptocurrency transactions are often difficult or impossible to reverse.

What to Do If You Think You Are Being Scammed

If you suspect that you are involved in a crypto pig butchering scam, stop sending money immediately.

Do not pay another “tax,” “withdrawal fee,” or “verification deposit” in an attempt to recover your funds.

Save evidence such as:

• Chat messages
• Usernames and profiles
• Website addresses
• Wallet addresses
• Transaction IDs
• Screenshots
• Emails
• Payment records

Contact the cryptocurrency exchange or financial service you used as soon as possible. Depending on where you live, you should also report the fraud to the relevant law enforcement or financial authorities.

Be careful of recovery scammers as well. After a victim loses money, criminals may contact them claiming they can recover the stolen cryptocurrency for an upfront payment. This can become a second scam.

Final Thoughts

A crypto pig butchering scheme is harmful since it does not initially seem like a classic scam.

In some cases, it takes a while before the scammer introduces a fraudulent investment after he has gained the trust of his victim.

It may all be part of the scheme to make the person believe that the investment is legitimate.

The best strategy in such a case would be to not let relationships influence the decision on how to invest money.

Cryptocurrency should never be sent just because the online person earned your trust.

When an investment seems too easy or guarantees returns or asks for payment before withdrawal, it should be researched.

FAQs

1. What is a crypto pig butchering scam?

A crypto pig butchering scam refers to a fraud that takes time as the criminals try to earn the trust of their victims before tricking them into investing in non-existent cryptocurrency investments.

2. How do these crypto scams target victims?

Scammers may reach out to victims on dating websites, social media platforms, messaging applications, or even random messages on their phones.

3. What are the signs to look out for?

Guaranteed profits, urgent investments, unasked investment advice, fake investment platforms, and need for additional payments for withdrawal are some common red flags.

4. Is there a way to recover cryptocurrencies invested in scams?

It is challenging to undo transactions involving cryptocurrencies. However, the victim should stop sending funds, document the transactions, and report the scam.

5. How can I protect myself from crypto investment scams?

Independent research about the investment platform, rejecting guarantee of return on investment, not sharing any private keys and seed phrases, and not sending cryptos to online acquaintances are some tips.