Sweet Talk and Empty Wallet: Romance-Fueled Investment Scams
A Story to Remember: Lisa’s Experience
Lisa, a friendly and successful management professional, had a full life with a busy job. But as her work became overwhelming, she felt increasingly isolated and took to social media to connect with new people. That’s when she met “Ryan” online, a man who quickly became a trusted friend and companion, though only virtually as he lived on the other side of the world. He seemed caring, sharing the same interests in travel, cooking, and eventually, investing.
Over several months as their relationship grew, Ryan suggested she invest in a crypto platform he had invested in and was growing fast. It seemed legitimate to Lisa, and she started by investing a small amount. As she saw her investment grow and as Ryan encouraged her, she invested even more money over the following months. After six months into the relationship, she at last tried to withdraw her money; however, the platform “froze” her account and Ryan disappeared. Lisa discovered she lost over $175,000 to a romance and investment scam known as “Pig Butchering.” The financial loss was devastating, but the emotional betrayal hurt even more.
What is Pig Butchering?
“Pig Butchering” is an elaborate scam that combines both romance and investment scams. It follows a few predictable steps:
- Initial Contact: The scammer reaches out via messaging apps or social media, initiating casual conversations and building trust.
- Building a Relationship: Over time, the scammer engages in regular conversations and may develop a romantic bond to strengthen the connection.
- Introducing Investment Opportunities: Once trust is established, the scammer mentions a lucrative investment, often in cryptocurrency, claiming to have insider knowledge.
- Encouraging Small Investments: The victim is encouraged to make a small initial investment and sees fake “profits” to build credibility.
- Increasing the Stakes: As the victim gains confidence, they are pressured to invest more with a sense of urgency.
- The Cut-Off: When the scammer has taken all they can, they “freeze” the victim’s account or disappear entirely, leaving them with nothing.
Top Red Flags to Detect Pig Butchering Scams
- Too Good to Be True: Be wary of anyone promising guaranteed returns or no-risk investments.
- Unexpected Contact: Strangers initiating casual messages, especially with vague introductions like “Hi,” are often scammers.
- Relationship Becomes Financial Quickly: If a new online acquaintance pushes financial discussions, it’s a major red flag.
- Pressure to Invest Quickly: Scammers create urgency, claiming limited-time opportunities to push victims into investing more.
- Fake Investment Platforms: Many scams use professional-looking but fake investment platforms with fabricated numbers.
- Difficulty Withdrawing Funds: If you encounter delays, excuses, or extra fees when trying to withdraw, it’s likely a scam.
How to Protect Yourself
- Be Wary: If a stranger initiates a connection, be suspicious—especially if money is involved.
- Research Platforms Thoroughly: Stick to well-known, regulated investment platforms and avoid those with unclear ownership.
- Guard Your Personal Information: Be cautious about sharing financial or personal details with people you haven’t met in person.
Guest Editor
Karen Nemani is the AWS Canadian Professional Services Commercial Security Leader and President of the WiCyS Ontario Affiliate. She is passionate about shifting cybersecurity culture to build an inclusive workforce where diverse mindsets, skillsets, and perspectives thrive. Connect with her on LinkedIn.
Resources
- Emotional Triggers: How Scammers Trick You
- Don’t Let Cybercriminals Swipe Your Savings
- Guard Your Heart (and Wallet) Against Romance Scams
About OUCH!
OUCH! is a monthly security awareness newsletter for everyone. It is published by SANS Security Awareness and is distributed under the Creative Commons BY-NC-ND 4.0 license. You are free to share or distribute this newsletter as long as you do not sell or modify it.
Editorial Board: Walter Scrivens, Phil Hoffman, Alan Waggoner, Leslie Ridout, Princess Young.
