Can your employees avoid pig-butchering scams?
Pig-butchering scams have already cost investors $75 billion, according to a new study. Is your team aware? A recent hit cost a small US bank almost $50 million in embezzled funds. Can your employees avoid pig-butchering scams? Here’s what to look for:
What is a pig-butchering scam?
The name comes from the idea of fattening an animal up for slaughter. And that’s how they get you. CyberGhostVPN explains that it usually starts with “a friendly message intended to make it look like the scammer is mistaking their victim for someone else. Regardless of what the victim replies, they seize that opportunity to strike up a conversation. Their goal is to build up some familiarity. Eventually, they bring up that they’ve been making a lot of money with a “lucrative investment”, usually in cryptocurrency. They’ll then tell their victims to get in on the opportunity while it’s hot.” Then they lead them to a totally fake crypto website. It is designed to look like people are making a lot of money from the investment.
Investopedia explains, “Once the victim has made an initial deposit, the scammer uses manipulated data and fake reports to show huge returns on the investment. They encourage the victim to invest even more money to capitalise on this supposed success, often using time-sensitive offers or claiming that a big opportunity is about to pass. Scammers may also introduce a sense of exclusivity, claiming that the victim is part of a select group with access to these special investments. As the victim invests more money, the scammer continues to show false profit reports and uses emotional manipulation to stay in control, continuing to profess love, promising a shared future, or even using threats and intimidation.”
They keep in touch, remaining friendly with the target; maybe even starting a romance. All the while, they will encourage them to invest everything they have. They do this with their own ‘success stories’ and the promise of a big payout. Then, once they’ve gotten all the money they can, the scammer (and sometimes even the website) totally disappears; taking the cash with them. This whole process can take months. The scammer may even send small gifts to double down on the legitimacy of the relationship.
New group pig-butchering scams
Lately, there’s been a rise in group chat scams too. This is where a lot of individuals get invites to a group chat about crypto. If they don’t leave, scammers will approach them 1-2-1 for this scheme. TrendMicro explains, “To further enhance their credibility, scammers often share images of their daily activities within the group chat. They also share images that subtly highlight their alleged earnings with other group chat members, which suggests that their success is a direct result of their investments. This creates an illusion that the members of the group are real people who are well-versed in investments, making it more difficult for potential victims to question the legitimacy of the investment opportunity. This tactic preys on the psychological phenomenon known as social proof, where individuals are more likely to trust and follow the actions of others, particularly when they appear to be successful.”
How to avoid pig-butchering scam
The simplest way to avoid getting lured in is not to engage. If you are added to a group chat by someone you don’t know, leave. When you get a wrong-number text message, ignore it or block it after responding that it’s a wrong number. If you’re going to invest in anything, do your own due diligence and never take out loans or steal from your employer or others to make an investment. Employers, wishing to better protect their funds, should put in several levels of checks and limits. This is especially when it comes to accessing company accounts. Then, they should use automated software to check and block fraudulent-looking transactions. They can lock down what apps employees can access on their company devices and which websites are restricted. This will provide additional layers of protection.
If you are worried about your own company’s cybersecurity in the face of pig-butchering and other scams, we can help. Get in touch for expert advice today.
