What Is the Pig Butchering Scam

The pig butchering scam is a multi-stage fraud in which criminals build trust with a victim, lure them into investing on a fake platform, and—after the initial swindle—keep extracting money by posing as bogus lawyers and regulators.
The name comes from the metaphor “fatten the pig before the slaughter”: the victim is “fed” promises of profit over time before being completely cleaned out.

How the Scheme Works

Stage 1 — Initial Capture

• Contact via social media, dating apps, or unsolicited messages.
• Months of “warming up”: friendship, flirting, business talk.
• Steering the conversation toward investing and inviting the victim to a fake platform.
• Showing “portfolio growth,” sometimes allowing a small withdrawal to build trust.
• When the victim tries to withdraw a larger amount—account lock and demands to pay fees, taxes, or other “charges.”

Stage 2 — “Helper” Front Companies

• After realizing they were scammed, the victim searches “how to get money back from a broker.”
• Through pixels and cookies, they get targeted by ads like “we recover funds from brokers.”
• These scammers pose as lawyers or asset-recovery specialists (recovery scam, TRM Labs analysis).
• They ask for upfront “legal fees” and disappear—or keep inventing new reasons for additional payments.

Stage 3 — Fake Regulators

• A “government agency” or “regulator” from the country where the broker allegedly operates contacts the victim.
• They use forged letterheads, seals, and email domains.
• They claim the funds have been located but require a tax or penalty to “unfreeze” them. Such tactics have been officially flagged by regulators including the U.S. Financial Crimes Enforcement Network (FinCEN).
• After payment, new “obstacles” appear to block the withdrawal again.

Psychology and Marketing of the Attack

• Emotional blackmail: the victim has already invested and doesn’t want to acknowledge the loss (sunk cost fallacy).
• Social proof: fake reviews, employee photos, and logos of well-known companies.
• Pixel retargeting: use of cookies and ads to re-engage the victim.
• Hope for rescue: offers of help appear to arrive “on their own.”

Real Cases

In 2023, the FBI recorded growth in pig-butchering schemes combining romance approaches with crypto investments. Losses exceeded $3.9 billion in the U.S. According to the IC3 Annual Report 2024, the Operation Level Up initiative launched in January helped identify and warn 4,323 victims of crypto-investment frauds, including pig butchering, and prevented $285.6 million in losses.

Spain — “Triple” Scam Worth €19 Million

Victims first fell for a classic pig-butchering setup; then the scammers returned as “collectors” promising to recover funds for a cut. The third act featured fake “Europol” agents demanding “taxes” and “fees.” Spanish police reported more than 170 victims (Finance Magnates).

Poland — Fake “Lawyers” Demanding Prepayment

After the initial fraud, “attorneys” and “intermediaries” contacted victims and demanded 5–10% upfront “to start the recovery process.” Hundreds of victims lost millions of euros. Police refer to this as a fool-me-twice fraud (Finance Magnates).

USA, Maryland — >$3M and a Second Wave of Attacks

A victim lost more than $3 million in a pig-butchering scheme; afterward, “recovery firms” entered the picture demanding additional payments. The FBI warns that scammers often split roles to extract maximum funds at each stage (CBS Baltimore).

Cyprus — Fake CySEC Regulator Websites

Criminals created look-alike pages of the Cypriot regulator to convince victims the “recovery process” was legitimate. CySEC issued a warning about such forgeries (Cyprus Mail, Finance Magnates).

How to Tell Real Law-Enforcement from Fakes

• Legitimate regulators do not charge fees to “return” funds.
• Official correspondence comes from .gov or recognized jurisdictional domains.
• Verify contacts on regulator websites (FBI, FCA, ASIC, etc.).
• Do not use links from unsolicited emails—look up the official site yourself.

How to Protect Yourself

• Ignore unsolicited investment pitches in messengers and social networks.
• Verify broker and company licenses in official registries.
• Never pay “fees” or “taxes” to unknown entities.
• “Report fraud to reputable specialized companies like Match Systems and to your local law enforcement agencies.”

What to Do Right Now If You Were Targeted

• Stop all transfers to the scammers immediately.
• Gather evidence: chats, transactions, screenshots.
• Report the fraud via the form on the website: matchsystems.com

Vet any “helpers” who contact you first. Before engaging, ensure the company truly exists and that its contact details match those listed on its official website.