Pig butchering scam
Also called romance baiting, sha zhu pan
A pig butchering scam is a long-running fraud in which criminals build a friendship or romance with a victim online, then persuade them to invest in a fake cryptocurrency or trading platform. The platform shows growing profits until the victim has sent as much as possible, then the scammers disappear with the money.
How it works
The scam starts with a wrong-number text, a dating app or social media contact. Over weeks the scammer builds trust, then mentions success with crypto trading and introduces a polished but fake platform. Early small withdrawals succeed, which convinces the victim to invest more, often by borrowing or selling assets. When the victim tries to withdraw, they are asked for fees or taxes, and the money is never returned.
Many operations are run from scam compounds in Southeast Asia, and workers there are often trafficking victims. Funds move from the victim's bank to a crypto exchange and on through money mules and wallets controlled by the network. Banks look for customers sending repeated, growing payments to new crypto exchanges, borrowing to fund them or describing an online friend who manages their investments.
The rules
Describes how pig butchering works, lists red flags and asks filers to use the key term FIN-2023-PIGBUTCHERING in suspicious activity reports.
US financial institutions with SAR obligationsBars US institutions from opening or keeping correspondent accounts for or on behalf of Huione Group, which FinCEN found laundered proceeds of cyber scams including pig butchering.
US financial institutions with correspondent accountsRequires sending and receiving firms to reimburse victims of authorised push payment scams, including investment scams paid by Faster Payments, and share the cost.
Payment firms sending and receiving Faster PaymentsCommon questions
Why is it called pig butchering?
The name is a translation of a Chinese term. Scammers describe fattening the victim with attention and fake profits before taking everything they can.
How is pig butchering different from a romance scam?
A romance scam usually asks for money for an emergency or travel. Pig butchering adds a fake investment platform and shows rising returns, so victims often send far larger sums over a longer period.
Can victims get their money back?
Recovery is hard once funds reach crypto wallets. In the UK, victims who paid by Faster Payments may be reimbursed under the APP scam rules, and exchanges can sometimes freeze traced funds.
