NEW YORK (NewsNation) — “Pig butchering” scams are so named from the idea that perpetrators “fatten up” their victims with flattery and fake bonding before taking their money.
Originating out of Asia, these scams usually start with a text message from someone simply saying “hi.” The scammers come across as very affectionate and make strong appeals to people’s emotions, earning their trust and then bleeding bank accounts dry.
CNBC on Tuesday detailed two such scams, in which one victim was swindled out of more than $100,00 and the other around $500,000. The scammers gained the trust of their marks and then requested they send money through fake crypto exchanges.
The victims are “taught” how to trade crypto and then shown nonexistent profits. When they go to withdraw, the exchanges shut down and the scammers block them.
Some people have lost close to $1 million being scammed, but the FBI said many victims are too embarrassed to come forward.
The Department of Homeland Security estimates there were over $3.3 billion in scam-related losses in 2022. The FBI was only able to recover about a fraction of those losses.
Last month, federal prosecutors in Los Angeles announced $112 million was seized in an illegal scheme, while similar action has been taken in New York and Virginia to take down domains and prosecute scammers.
Experts urged the public not to engage with random strange texts, saying don’t click the link and don’t text with strangers no matter how nice they may seem.
“If it is accompanied by a link or you have to type something, don’t do it,” cyber attorney and expert Andrew Rossow said.
“Can it be stopped entirely? I don’t think so,” Rossow said. “Why? Because we’re in the digital age.”
Tyler Police Department Public Information Officer Andy Erbaugh said all the scammer wants is a callback or a click on a link.
“Any of those and they’ve got you,” Erbaugh said.
Another investment scam called “smishing” involves scammers sending victims text messages that appear to be from legitimate companies and corporations like banks and credit card companies. Victims are convinced to click a link that then downloads all of their personal information, giving scammers access to their bank account information and they drain their accounts.
According to AARP, smishing scams “rely on persuading you that the sender is a familiar or trusted source and that urgent action is needed to secure a benefit, resolve a problem or avert a threat.”
Devan Markham contributed to this report.