Pig Butchering Scams Increase as Criminals Shift Strategies

Pig butchering scams have expanded rapidly in 2024, with fraudsters adapting new tactics and using artificial intelligence to enhance their operations. Chainalysis, a blockchain intelligence firm, published a report on February 13 highlighting a sharp rise in these scams, which involve building trust with victims before stealing their funds.

Scammers collected at least $9.9 billion in cryptocurrency-related fraud last year, and that figure is expected to grow as more illicit addresses come to light. Pig butchering scams made up 33.2% of all scam revenue, second only to high-yield investment scams (HYIS), which accounted for 50.2%. While HYIS-related fraud saw a 36.6% drop year-over-year, pig butchering scams expanded, drawing in a larger pool of victims.

The number of deposits linked to pig butchering scams jumped nearly 210% compared to the previous year. However, the average amount per deposit fell by 55%, suggesting scammers have changed strategies. Instead of waiting months to lure victims through long-term relationship-building, they are turning to employment and work-from-home scams that promise quick money. These shorter-term frauds require smaller upfront deposits but reach a broader audience.

Cybersecurity firm Proofpoint connected fraudulent job recruitment websites to known pig butchering scam wallets, reinforcing evidence that scammers are using different approaches to target victims.

Law enforcement agencies have intensified efforts to disrupt these networks. Nigerian authorities recently arrested 88 people involved in an investment scam targeting victims in Europe and the Americas. In Namibia, Interpol rescued 88 young people who had been forced into scam-related labor.

Scammers are also leveraging AI-driven tools to improve their operations. Deepfake identities, automated scam conversations, and fabricated financial documents allow them to deceive victims more efficiently while avoiding detection. Experts believe fraud networks are focusing on volume rather than large individual payments, making it harder for authorities to track and disrupt them.