How can you avoid falling victim to "pig-butchering" scams?

Joseph Chance (0:04)

How can you avoid falling victim to pig butchering scams?

Thanks for asking.

Imagine somebody spending months gaining your trust, only to eventually trick you into handing over your life savings. Well, that's the basic principle behind a scam commonly called pig butchering. The name refers to gradually fattening up a victim's confidence before taking as much money as possible. Law enforcement organizations prefer the term romance-baiting investment fraud, which is less potentially demeaning to victims.

How do these scams work, then? It often starts with innocent looking contacts, a text supposedly sent to the wrong number, a dating profile, or an unsolicited social media message. The scammer presents themselves as attentive, successful, and caring. They may build an artificial friendship or romantic relationship over a period of weeks or months before mentioning money. They may even send the victim a small sum of money themselves at some stage to gain trust and lull them into a sense of security. Some scams are actually run by organised groups in industrial scale centres. Interpol says these operations were initially concentrated in South East Asia but have since spread elsewhere. Some of the people sending messages have themselves been trafficked and forced to commit fraud. Why might a victim end up thinking that they're making money? The criminal usually directs their victim to a professional looking investment website or app that they control. It displays fictional profits making it appear that your investment is growing.

You may even be allowed to withdraw a small sum. That makes the platform seem genuine and encourages you to invest more.

Related online task scams initially pay people small amounts for liking posts or rating products. Victims are later told to deposit their own money to unlock more work. The method is slightly different, but the principle is the same. Offer an early reward, build confidence and then demand larger payments. Anyone can be targeted. These scams are based on carefully scripted psychological manipulation and don't necessarily rely on the victim having a lack of financial knowledge. When does the butchering part happen then? Once trust is established, the scammer introduces an investment opportunity, often involving cryptocurrency. The victim is pressured to invest increasingly large sums. The fake platform displays impressive profits, encouraging them to transfer savings, borrow money or take out a loan. But when the victim tries to withdraw, their account is simply frozen. They may be told to pay a tax or security fee first, and even paying that won't release the money, it just adds to their losses. Some victims are later contacted by criminals claiming they can recover the stolen funds in return for a fee. Of course, this is just another method of scamming even more money out of them.

How can I protect myself then? All of the following are absolutely red flags to look out for. A relationship that becomes intense unusually quickly. Someone who avoids meeting in person or video calling. An online contact offering unexpected investment advice. Promises of quick or risk-free returns. Instructions to use cryptocurrency or an unfamiliar platform. And extra fees before you can withdraw your profits. As a general rule, never invest solely on the recommendation of someone you met online. Check the firm using the FCA Firm Checker. And bear in mind that most crypto activity isn't regulated in the UK. If you're targeted, stop sending money. Contact your bank immediately. And preserve messages and transaction records. Don't pay any withdrawal or recovery fees. If you live in England, Wales or Northern Ireland, you can contact Report Fraud Online or on 300 123 2040 Meanwhile Scottish victims can call Police Scotland on 101

There you have it.

Now you know how to avoid falling victim to pig butchering scams. In under 3 minutes, we answer your questions and help you understand the true meaning behind the trends, concepts and acronyms that are making headlines. Listen along and you will really know for sure.