Pig Butchering Scams in Crypto: What They Are and How to Stay Safe

Although cryptocurrency debuted to the public in 2009, the virtual currency has only gone mainstream over the past several years. Casual internet users grow and lose fortunes through Bitcoin, Dogecoin, Ethereum, and other crypto brands. Celebrities like Matt Damon and Tom Brady have been advocates for cryptocurrency, with the latter named as a defendant in a lawsuit against the infamous FTX crypto hedge fund. Alas, FTX and the downfall of owner Sam Bankman-Fried is only one of many recent fraudulent scams involving cryptocurrency. Unfortunately, one of the most malicious types of crypto schemes — a pig butchering scam — is on the rise. Although crypto may have benefits for the scrupulous investor, it’s vital that you understand the nature of crypto pig butchering before you invest your life savings into the virtual currency. Let’s take a look at cryptocurrency, pig butchering scams, and how you can protect yourself from falling prey to cybercriminals posing as crypto advisors. More than that, it involves the slow cultivation of a relationship with the victim, taking months to develop in order to gain a high level of trust, and generate investments from them. Cryptocurrency is a decentralized digital currency that operates based on a technology called blockchain . Currently, there are no federal or international regulations on cryptocurrency. In theory, this means that crypto isn’t under control of a greedy bank or financial institution, its value should be transparent, and transaction fees to invest, transfer, and pay with crypto should be significantly less than those associated with banks and financial institutions. Cryptocurrency is more difficult to counterfeit than paper money and can be stored in digital wallets to use for online investments and transactions. The first attempt to create currency was in 1983, when U.S. cryptographer David Chaum theorized that eCash , an electronic token currency, could provide an extremely safe and encrypted way for individuals to exchange untraceable money with a signature of authenticity. Chaum formed a company called Digicash to launch his idea, but it folded in 1998 without ever achieving widespread success. In the years since the inception of eCash, many iterations of cryptocurrency debuted, but it wasn’t until the advent of Bitcoin in 2008 (Bitcoin remains the longest surviving form of cryptocurrency) that encrypted digital currency began to find success. Cryptocurrency works by using blockchain technology, which provides a way to record verified individual crypto transactions, and encryption via cryptography methods to protect transactions. Although crypto requires a bit of tech savviness to create, anyone can choose to purchase, use, and invest in cryptocurrency. With a staggering market cap of $1.28 trillion , Bitcoin (BTC) is one of many types of modern cryptocurrency used around the world. Some of the most popular types of cryptocurrency include: Although cryptocurrency is a secure and protected form of digital money, cybercriminals and fraudsters have taken advantage of its unregulated nature to dupe unsuspecting, “easy” prey in many ways, including through a pig butchering scam. The first mistake, most security experts would tell you, was responding at all to strange text. However, Jane is a decent person and felt obliged to tell the person who sent the message that she, Jane, was likely not who the message was meant for. Pig butchering may sound like a particularly unpleasant way to refer to a cybercriminal scheme, but the scam has earned its moniker. The pig butchering scam (also known as a pig slaughter scam) meaning likens unwitting victims to oblivious pigs, fattened for the slaughter. A pig butchering scam targets victims and dupes them into investing money in a fraudulent cryptocurrency scheme. If you aren’t already invested in crypto, you may assume that you could spot the red flags of these schemes as soon as they hit your email, messaging apps, or texts. However, the bad actors who perpetuate a pig butchering scheme work subtly and slowly. Here’s how it works: A particularly insidious scam that could easily be called “pig roasting” may come after you’ve been bilked by a bogus crypto pig butchering scammer. Your original scammer, or the organization they’re a part of, may also have fraudulent “crypto recovery” websites. After you’ve lost your money, you may receive messages or emails from a crypto recovery company that offers to help you recoup your losses from a pig butchering scam. These messages will invite you to follow a link and pay a small fee to recover your money. Once you’ve paid the fee, you’ll be ghosted by the recovery company in the same way the initial scammer fleeced you and disappeared. If you’ve fallen prey to a pig butchering scam, you’re not alone. Here are some shocking pig butchering statistics: If you want to avoid becoming the victim of a pig butchering scam, there are easy steps that you can follow. Some of the ways to prevent crypto pig butchering siphoning your hard-earned savings include: Pig butchering scams often start with an unexpected friendly text or social media message, usually from someone pretending to have sent it to the wrong number. If this “wrong number” contact quickly turns into a “friend” and talks about crypto investing or incredible returns, be cautious—it’s a red flag. Real friends don’t push high-stakes investments on you. In pig butchering, scammers pose as friendly contacts who gradually build trust over weeks or months. After forming a bond, they introduce the idea of a “safe” crypto investment they’re supposedly profiting from. They show fake returns to “fatten” the victim’s investment confidence, and once the victim has invested heavily, the scammer disappears—taking all the money with them. Crypto scammers often try to rush you into “limited-time” opportunities, promise massive returns, or use impressive screenshots of their “earnings.” They might also avoid meeting in person, claiming to be in another country or busy with “business travel.” If a “friend” you’ve only met online pressures you to invest, it’s likely a scam. People fall for pig butchering scams because scammers take time to build trust and create a sense of security. They use fake investment returns to make the scam look real, so victims feel they’re getting easy profits. By the time suspicions arise, many victims are heavily invested financially and emotionally, making it even harder to pull out. The wrong number pig butchering starts with a text message that seems meant for someone else—like, “Are we meeting for dinner?” When the target responds, the scammer pretends to have accidentally messaged them, then turns the mix-up into a friendly conversation. Eventually, they introduce a “safe” investment, luring the target into the scam. Ignore unexpected messages from unknown numbers. If you respond, it’s best to keep it brief, like “Sorry, wrong number,” and block the sender. Engaging only confirms your number as valid, increasing the chance of future scam attempts. Preventing pig butchering starts with awareness and skepticism. Don’t respond to random texts, especially if they quickly turn friendly or start talking investments. Share what you know with friends and family—anyone can be a target. And if you’re ever unsure about a financial opportunity, run it by someone you trust or consult a financial expert. For more tips on how to avoid the latest pig butchering scams, check out the Easy Prey podcast from What Is My IP Address , available on your favorite podcast platforms, and visit our blog .