What is a pig butchering scam?

Where does the name pig butchering come from?

The term is a translation of the Chinese phrase sha zhu pan. In its 2023 alert to US banks, the Financial Crimes Enforcement Network (FinCEN) explains the metaphor: scammers call their targets "pigs", spend time "fattening" them with attention, a believable identity and the promise of a partnership, then "butcher" them once their savings have been taken.

However it is labelled, the scheme is a cross between a fake investment platform and a romance scam, and it relies on time. Unlike a phishing text that wants your password today, a pig butchering contact may chat for weeks before money is ever mentioned.

How does a pig butchering scam unfold?

FinCEN describes a typical sequence. The FBI's 2025 IC3 report and the FTC describe the same pattern from victims' complaints.

1. The opener. A "wrong number" text, a social media message, a dating match or an online ad. The FTC found that nearly 60% of people who lost money to a romance scam in 2025 said it began on social media.

2. The friendship. Regular, warm messages over days or weeks. FinCEN notes the contact may claim to be an investor or money manager. The conversation moves to a private messaging app.

3. The tip. The new friend mentions, almost casually, that they trade crypto or gold with help from a mentor or an "insider" group, and offers to show you how.

4. The platform. You open an account on a website or app that looks professional, sometimes downloaded from a link rather than an official app store. Your balance rises fast.

5. The squeeze. You are encouraged to deposit more, sometimes with a loan. When you try to withdraw, the platform demands taxes, fees or penalties first. Then the contact disappears.

Who runs pig butchering scams?

FinCEN says the scams are run by criminal organizations based in Southeast Asia, from large scam compounds. It also notes that a significant number of the people who send the messages are likely victims of human trafficking themselves, forced to work against their will.

In October 2025 the US Treasury, together with the UK, took what it called its largest action yet against these networks, sanctioning 146 targets linked to the Prince Group, which it described as a transnational criminal organization running scam compounds in Cambodia. Treasury said Americans lost at least $10 billion to Southeast Asia-based scam operations in 2024, a 66% rise on the year before. On the same day, US prosecutors in Brooklyn announced an indictment of the group's chairman and a forfeiture action covering about 127,271 bitcoin. Those are allegations; the defendant is presumed innocent unless proven guilty.

How can you tell a real adviser from a pig butchering setup?

Before moving money, check the platform against official registers using how to check if a platform is registered.

What mistakes keep victims in the scam longer?

• Believing the balance. The profits are numbers typed into a fake website. They cannot be withdrawn because they do not exist.
• Paying the release fee. Every "tax", "fee" or "penalty" is another deposit to the scammers.
• Keeping it to yourself. The FBI found that 78% of the 3,780 people it warned under Operation Level Up in 2025 did not realize they were being scammed. An outside view breaks the spell.
• Hiring a recovery service. IC3 recorded $1.4 billion in recovery-scam losses in 2025. Anyone charging upfront to trace or return crypto is the next scam, including fake FBI or IC3 agents.
• Skipping the basic checks. The FTC suggests a reverse image search of a love interest's profile photo and talking to trusted friends or family before sending anything.

What should you do if you think it is happening to you?

Stop sending money, even if you are told it is the last payment. Keep the chat history, wallet addresses and transaction records. Report to the FBI at ic3.gov, typing the address yourself, and to the FTC at ReportFraud.ftc.gov; call your bank and any exchange you used. IC3 says it never contacts people through social media and never charges to recover funds, so treat anyone claiming otherwise as an impostor.

If it is a parent or friend, lead with sympathy. Shame keeps people paying, and FinCEN and Treasury describe these as organized criminal operations, not chance encounters.