What to do if you’ve been Scammed
If you’ve fallen victim to a cryptocurrency scam it’s critical to take immediate action. At Crypto Consulting NZ, we specialize in scam support services tailored to your specific needs. We’ll help you confirm if you’ve been scammed, guide you through documenting your case, and provide expert advice on what to do.
Whether it’s Pig Butchering or Rug Pulls our consultants can assist with every step of the process to ensure you’re informed and protected moving forward.
What is a Pig Butchering Scam?
In a pig butchering scam, scammers use social manipulation to convince victims to invest large sums of money, only to reveal later that it was all a fraud.
The term comes from the Chinese phrase “Shāzhū Pán,” meaning pig butchering, which reflects the way scammers “fatten up” their victims by gaining trust before taking everything. This crypto scam has been on the rise, so it’s crucial to stay alert, especially in New Zealand.
How do Pig Butchering Scams Work?
Each variation of a pig butchering scam follows a similar pattern—scammers first aim to build trust with their victims. They often initiate contact through an SMS or direct message on social apps, sometimes posing as a “wrong number” text or through dating apps in the case of a romance scam.
The key is establishing a relationship, which can take days or weeks.
Once the scammer feels they’ve gained the victim’s confidence, they introduce an investment opportunity, usually involving cryptocurrency. Crypto is often used due to its loose regulation and ease of theft. From this point, the fraudster works to convince the victim that the investment is legitimate, aiming to extract the maximum amount of money before “pulling the rug”.
Scammers often set up fake crypto investment websites or use popular platforms like Coinbase to lend credibility. The fraudulent sites trick victims into handing over control of their investments, making it easy for scammers to execute the rug pull and disappear with the victim’s assets.
Example of a Pig Butchering Scam
In a typical pig butchering scam, Adam encounters Sarah on a dating app, where she poses as a crypto investor . Through affectionate messages and promises of a future together, Sarah builds Adam’s trust. Eventually, she persuades him to send her $1,000 to resolve a supposed financial emergency.
Simultaneously, Sarah targets another individual, convincing him to invest $2,000 in a fraudulent crypto scheme. To maintain Adam’s investment and trust, Sarah sends a small return on his initial $1,000. While keeping Adam and others emotionally and financially engaged, Sarah continues her scam.
Warning Signs of a Pig Butchering Scam
“Wrong Number” Text Messages
The most common way a pig butchering scam begins is through an innocent looking message. Typically, the scammer will:
- Address you by the wrong name.
- Share something friendly or familiar, like “Looking forward to catching up for coffee next week!”
- Apologize when you correct them but keep the conversation going with flattery and polite replies.
Pushing Talk about Money and Investing
Emotional Manipulation
How to Prevent Pig Butchering Scams
While being aware of warning signs is key to protecting yourself from pig butchering scams, banks are also stepping up with new tools to help prevent it.
Using AI and machine learning, banks can identify crime rings running large-scale scams and detect suspicious activity from otherwise normal accounts. Fraud detection software flags unusual or large transactions that deviate from a customer’s typical behavior, allowing bank staff to review and block transfers.
Since these scams often involve cryptocurrency, tracing the funds can be difficult. That’s why banks focus on stopping transactions before they happen by identifying customers at risk. While there’s still progress to be made in fighting first-party fraud, criminals running these scams face increasing challenges as financial institutions catch up.
