How ‘Pig Butchering’ Scams Work, How To Protect Yourself-Nithin Kamath Explains

Even as the cases of financial scams are on the rise, Nithin Kamath on Monday said it is scary how many people fall for various financial scams. The founder and CEO of online brokerage firm Zerodha explained pig butchering scams and also suggested ways to protect yourself from such scams.

“The scale of pig butchering scams in India runs into tens of thousands of crores. It is scary how many people fall for fake job offer scams, scammy high-return investment schemes and crypto investments, etc,” Nithin Kamath said in a post on X.

What Is Pig Butchering?

Pig butchering is a type of online dating scam in which the scammer targets and manipulates victims into sending them money. The scam is named after the process of slaughtering a pig, as the scammer gradually “fatten” the victim with small requests for money before making a big kill.

The scam typically begins with the scammer creating a fake profile on a dating app or website. They will often use stolen photos and create a persona that is designed to appeal to their target victim. Once they have established a connection with the victim, they will begin to groom them by building trust and rapport.

Once the scammer has gained the victim’s trust, they will begin to ask for money. They may start with small requests, such as asking for help paying for a bill or buying a gift. However, as the scam progresses, the requests will become larger and more frequent.

The scale of pig butchering scams in India runs into tens of thousands of crores. It is scary how many people fall for fake job offer scams, scammy high-return investment schemes and crypto investments, etc.

As the name implies, a pig butchering scam involves fattening the… pic.twitter.com/x3ezkZrmHR

— Nithin Kamath (@Nithin0dha) November 13, 2023

The scammer may also use a variety of other tactics to manipulate the victim into sending them money, such as:

• Claiming to be in financial trouble due to an unexpected expense, such as a medical bill or car accident.
• Pretending to be interested in investing in a business opportunity or cryptocurrency venture.
• Promising to send the victim a large sum of money once they have resolved their financial problems.
• Threatening to expose the victim’s personal information or photos if they do not send them money.

How Pig Butchering Work?

The “Pig Butchering” scam is a type of online dating scam where the scammer gradually builds trust with the victim before convincing them to invest in a fake investment platform. The scammer then steals the victim’s investment money.

Steps involved in a pig butchering scam:

1. The scammer creates a fake online dating profile and starts messaging potential victims.
2. The scammer builds trust with the victim by being affectionate and sharing personal information.
3. After a few weeks or months, the scammer introduces the victim to a fake investment platform. The scammer may claim to have made a lot of money using the platform and offer to help the victim invest as well.
4. The victim invests a small amount of money on the platform and sees a good return. This encourages the victim to invest more money.
5. The scammer convinces the victim to invest more and more money on the platform, until the victim has invested a large amount of money.
6. The scammer then disappears with the victim’s investment money.

How To Protect Yourself From This Scam

• Be careful about who you share personal information with online. Scammers can use your personal information to steal your identity or commit other types of fraud. Be wary of sharing your name, address, phone number, Social Security number, bank account information, or other personal information with people you don’t know and trust.
• Be wary of anyone who promises you easy money or high returns on investments. If it sounds too good to be true, it probably is. Scammers often promise high returns on investments in order to lure people in. Once they have your money, they disappear.
• Do your own research on any investment platform before investing your money. Before you invest any money, be sure to research the investment platform and the people involved. Make sure the platform is registered with a financial regulator and that it has a good reputation.
• Be careful about investing in platforms that are not well-known or reputable. Scammers often create fake investment platforms that look like legitimate platforms. Be wary of investing in any platform that you’re not familiar with.
• Never send money to someone you’ve only met online. If someone asks you to send them money, even if it’s just a small amount, be very wary. Scammers often ask for money upfront before they disappear.

If you think you may have been the victim of a pig butchering scam, you should report it to the authorities immediately. You can also contact a consumer protection agency for assistance.

• Be aware of the red flags. Some red flags of a pig butchering scam include:
  • The scammer is overly affectionate and attentive.
  • The scammer claims to have made a lot of money using a fake investment platform.
  • The scammer pressures you to invest money quickly.
  • The scammer promises guaranteed returns on your investment.
  • The investment platform is poorly designed or has unrealistic features.
  • The investment platform is not registered with any financial regulators.
• Trust your gut. If something feels wrong, it probably is. If you have any doubts about an investment opportunity, it’s best to err on the side of caution and walk away.

Tips for spotting a pig butchering scam

• The scammer may use a fake online dating profile.
• The scammer may be overly affectionate and attentive.
• The scammer may claim to have made a lot of money using a fake investment platform.
• The scammer may pressure you to invest money quickly.
• The scammer may promise guaranteed returns on your investment.
• The investment platform may be poorly designed or have unrealistic features.
• The investment platform may not be registered with any financial regulators.