With international Fraud Awareness Week from 16 November to 22 November, it’s a great time to keep bringing awareness to the community about trends and scams being perpetrated.  While this is fraud awareness week, everyday is a good day to stay vigilant.  

Have you ever heard of a scam known as “Pig Butchering”? A terrible term and really describes what fraudsters think of their victims.  It is a fraud that’s costing millions in the Australian community. The term might sound strange, but it’s named after the farming practice of fattening pigs before slaughter. In this context, it refers to criminals who build trust with their victims over weeks or even months before draining their finances. Often, the fraudsters use fake cryptocurrency platforms that make it look like you’re making money, but it’s all a façade. These scams aren’t run by lone fraudsters. They’re orchestrated by transnational organised crime syndicates, often operating out of scam compounds in Southeast Asia. They also use human trafficked labour and advanced psychological manipulation to deceive their victims. So, how does it work? Are you or your loved ones at risk? Let’s dive into the typical lifecycle of a Pig Butchering scam.

How does it work? Are you or your loved ones at risk? 

Below is a typical lifecycle of a Pig Butchering Scam and how they lure you in:

• The Hook: Casual Contact

Scammers initiate contact via dating apps, social media, or via an accidental ‘wrong number’ text message. These messages are designed to be innocuous or appear accidental but quickly turn friendly and engaging. The aim is to start a conversation that feels natural and non-threatening.

• Building Trust and Emotional Connection

Over time, scammers build a relationship, sometimes romantic, sometimes friendly. The scammers will share photos, personal stories, or even join video calls using actors or AI-generated avatars. This can go on for weeks or months and is designed to make the victim feel safe and valued.

• the ‘Opportunity’

Once trust is established, scammers introduce a supposedly exclusive investment opportunity, often in cryptocurrency. They claim to have insider knowledge or personal success and may show fake dashboards, trading apps, or testimonials to prove legitimacy and entice you.

• Small Wins to Build Confidence

Victims are encouraged to invest small amounts initially. These are often returned with fake profits to build confidence. The platforms used are fraudulent but mimic real trading apps, complete with charts, help desks, and mobile interfaces.

• Pressure tactics

Scammers apply psychological pressure, citing time-sensitive deals, market trends, or emotional appeals. Victims are urged to invest more to “unlock” bigger returns. Some are even told to borrow money or take out loans to continue investing.

• Extraction of Funds

As victims invest more, scammers introduce fake fees, taxes, or account upgrades to delay withdrawals.  The victim’s account may be “frozen” or flagged for “compliance”, requiring further payments. At this point, the scammer is extracting as much money as possible from you.

• The Scammers Exit

Eventually, the scammer vanishes, cutting off contact or shutting down the fake platform. Victims are left emotionally shattered and financially ruined, often feeling ashamed to report the crime to the police or to seek help from professionals. It is for these reasons that many of these scams go undetected.

Scam Trends and Red Flags

• Use of AI and Deepfakes: The person you think is online, is not what you see in the video.  Scammers use AI-generated images and video avatars that look real and in line with the person you imagined you were going to meet. 
• Fake Apps on App Stores: Fraudulent trading apps may be available on legitimate platforms such as Google Play or Apple’s App Store.
• Trafficked Scam Workers: Many scammers are themselves victims of human trafficking, forced to run scams under threat of physical violence.
• Crypto Laundering: Funds are often converted into cryptocurrency and laundered through legitimate exchanges or ‘rented’ bank accounts.
• High frequency of messages (i.e. “good morning” and “good night”)
• Immediate interest/eagerness to form a friendship/relationship
• Sharing personal stories that are sad in nature to elicit sympathy
• Mentioning investments and cryptocurrency
• Reluctance to meet in person

Some Relevant Statistics

• In 2022, Australians lost around $40 million to pig butchering (romance style) scams.  Collectively, at a loss rate of about $4,500 per hour.
• In 2023, the average losses for Australian dropped slightly to about $3,800 per hour.
• Chainalysis reported that, globally, in 2024, pig butchering scammers fraudulently obtained $4 billion; a 30% increase from 2023.
• These statistics are likely a conservative figure given many of the losses not being reported due to victims feeling embarrassed and guilt for losing money to the scam

 How to Protect Yourself

• Do not have continued engagement with someone at the other end of any unsolicited messages you may receive. 
• Always remain skeptical.
• Don’t download Apps or click links sent by online ‘strangers’.

Join Us During Fraud Awareness Week

Fraud Awareness Week is a great time to get the message out and check in with those near and dear.  Ask the question if they too, have had any unsolicited text messages, chat messages or other forms of contact (email included) to which they may have responded.  These organised crime groups are very good at what they do, they have a formula and follow a script.  They take their time to win your trust and manipulate you, often this is because most people are kind, have faith in people and don’t want to seem rude.  The scammers play on all of that. Don’t think you are not at risk.  We all have our days where we are not fully on guard.  Many people have fallen for these types and fallen into the trap. 

At CurbyMcLintock, we want you to stay safe:  Remember that our Australian community, banding together and checking in on each other, can help disrupt scams and protect our communities.

Resources for Australians

• Scamwatch.gov.au – National Anti-Scam Centre
• IDCARE – Support for identity theft and cybercrime
• ACSC – Australian Cyber Security Centre
• ReportCyber – Official platform for reporting cybercrime