Pig Butchering: Investment Frauds on a Massive Scale

Pig Butchering: A New Way of Investment Fraud

“Pig butchering” is a type of investment fraud in which criminals deceive victims into making large investments on fake trading platforms. This scheme is often associated with cryptocurrencies and relies on gaining victims’ trust before committing the fraud.

Scope of the Fraud

According to researchers’ estimates, fraudsters using pig butchering have stolen over $75 billion in the past four years. Analysis by specialists from Group-IB revealed that fake mobile applications pretending to be trading platforms are found on Google Play and the Apple App Store, constituting part of this global fraud.

Criminals’ Methods of Operation

Cybercriminals reach their victims through social engineering on dating websites and social media portals. Victims are misled into downloading fake applications, disclosing confidential information, making deposits, and continuing with investments that they cannot withdraw.

Fake Applications

One of the fake applications claimed to be for mathematical formulas and graphics, urging users to create an account and make a deposit. The application was removed from the App Store, but cybercriminals continue to distribute it through phishing websites. Another fake application on Google Play pretended to provide market information, and it was removed after attracting over a thousand downloads.

International Reach

Victims of pig butchering have been identified in regions such as Asia-Pacific, Europe, the Middle East, and Africa. This tactic enriches the various ways in which cybercriminals commit investment-related crimes, such as emptying Bitcoin ATM accounts or impersonating retail brands for cryptocurrency scams.