advertisementAs reported by the Wall Street Journal, the case involves a man from the American Midwest who fell victim to an elaborate online scam known as "pig butchering."
The scam began with a LinkedIn message from a scammer posing as a wealthy young Chinese woman.
With the conversation, the scammer then started a romantic relationship with the victim to further deepen the trust.
"Pig butchering" is a type of online scam where fraudsters build a romantic or personal rapport with their victims over time to gain their trust and access their finances.
Be cautious if someone you've just met online quickly expresses strong romantic feelings or proposes investment opportunities.
Online scams are becoming a growing epidemic in the cyber world. Not just India but globally, countries are fighting against cases of cyber fraud. Scammers are devising new tricks to deceive internet users, and all these tricks are centred around exploiting human emotions, be it excitement, hope, greed, or even love. One such case of this exploitation has been reported in the US, where a 75-year-old professional ended up losing his life savings of around Rs 6 crore to a woman he met and fell in love with on LinkedIn.
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As reported by the Wall Street Journal, the case involves a man from the American Midwest who fell victim to an elaborate online scam known as "pig butchering." The scam began with a LinkedIn message from a scammer posing as a wealthy young Chinese woman. The scammer introduced herself as Violaine Chen, a successful gold futures trader living in San Francisco, and shared images of a luxurious lifestyle. She commended the man's professional accomplishments. As the online conversation grew, the scammer then suggested continuing their conversation on WhatsApp for privacy.
With the conversation, the scammer then started a romantic relationship with the victim to further deepen the trust. As the victim fell into the trap, she engaged him in daily conversations, discussing personal details about her meals, workouts, and charitable activities. Drawn in by her seemingly genuine personality and shared interests, the victim began to trust her implicitly.
The deception deepened as Violaine proposed they invest together on a trading platform called FX6, which she said was owned by her uncle. She guided the man in setting up an account on a related app called Fuex and convinced him to deposit $1,500 initially. Enticed by the prospect of a romantic future together, the victim sold stocks and mutual funds, ultimately depositing over $300,000 into the Fuex account. The app deceptively showed their combined investments growing to nearly $1.5 million.
However, when the victim attempted to withdraw funds, Fuex customer service, who were part of the scam, blocked his request and demanded additional fees to release his funds. Desperate, the victim paid these fees using his remaining investments, a bank loan, and a home-equity loan, culminating in a total loss of $716,212 (Rs 5,97,39,959). The scammer eventually blamed the victim for the situation and ceased most communication. Despite reporting the crime to the FBI, the victim has been unable to trace his lost money and continues to grapple with the emotional and financial repercussions of the scam.
What is pig butchering?
"Pig butchering" is a type of online scam where fraudsters build a romantic or personal rapport with their victims over time to gain their trust and access their finances. The term, also known as a "sha zhu pan" scam, derives from the practice of fattening up a pig before slaughter, reflecting how scammers groom their victims by building a deep relationship before exploiting them financially.
Scammers often pose as attractive, wealthy individuals who engage their targets with constant communication and shared interests. According to the report, this type of scam often operates from scam dens, often located in Southeast Asia and West Africa, run by Chinese criminal syndicates. These dens are notorious for human trafficking, where individuals are coerced into participating in fraud under threats of violence.
The scammers use sophisticated methods, including fake profiles, scripted interactions, and deceptive financial platforms to manipulate victims into investing large sums of money. The fraudulent trading platforms show false returns to entice victims into investing more. When victims attempt to withdraw their funds, they are met with fabricated obstacles and demands for additional payments, ultimately leading to significant financial losses. In this case, the scammer pretended to be a woman, made the victim fall in love, and then made him trust her and give up all his money in fake investments.
How to stay safe from big butchering scam
Here are a few tips to help you prevent falling into such scams:
Be wary of unsolicited messages on social media or professional networking sites. Scammers often initiate contact through these platforms.
If you engage in online relationships, verify the person's identity through video calls or meeting in person. Scammers typically avoid direct contact that could reveal their true identity.
Be cautious if someone you've just met online quickly expresses strong romantic feelings or proposes investment opportunities. This is a common tactic used to build false trust.
Before investing, research the platform and verify its legitimacy through independent sources. Avoid platforms that lack transparency or seem too good to be true.
Pay attention to warnings from banks or financial institutions about suspicious activity. They can often detect fraud before it escalates.
Avoid sharing sensitive personal or financial information with individuals you haven't met in person.
