Traditional pig-butchering scams, rooted in China and amplified during the pandemic, involve criminals establishing false romantic relationships through dating apps or social media.
These deceptive connections lead victims into phony cryptocurrency investments, resulting in the loss of substantial digital assets. The term "pig butchering" metaphorically captures the process of fattening victims before financial slaughter.
However, in the latest report, cybercriminals are discovered to be selling new kits of pig butchering scams online-all over the dark web.
The Evolution: DeFi Savings Scam Kits
A new variant known as "DeFi savings" is gaining prominence, now available as a bundled and saleable kit. Unlike its predecessor, this scheme relies on personal connections formed through well-known cryptocurrency apps, leveraging victims' trust in these platforms.
The kit persuades victims to invest in a "DeFi savings opportunity" by leading them to a malicious web address through a legitimate crypto wallet application.
Related Article : Crypto Scam 'Pig Butchering' Has Scammed Millions From Thousands of Victims, Warns the FTC
DeFi Savings Mechanism
DeFi savings scam kits comprise web pages designed to connect to victims' crypto wallets via the Ethereum blockchain. These pages often include an integrated chat feature, enabling criminals to pose as "technical support" for victims. This method facilitates real-time interaction, enhancing the illusion of legitimacy in the eyes of the victims.
Global Proliferation and Diverse Culprits
The commodification of these scam kits has democratized access to pig-butchering schemes, attracting a diverse range of fraudsters. While these scams were historically linked to Chinese-language crime rings in Southeast Asia, they are now emanating from web addresses in Thailand and West Africa, Bloomberg reports. This allows scammers from various backgrounds to participate, posing a more widespread threat.
Transitioning from Social Engineering to DeFi Scams
The simplicity of DeFi savings scams facilitates an easy transition for fraudsters from traditional social engineering scams.
With dozens of new kits emerging daily, DeFi scams have become the fastest-growing segment within pig-butchering. This method eliminates some of the technical complexities associated with traditional techniques, contributing to its swift proliferation.
Earning Millions Swiftly with DeFi Rings
DeFi rings studied by experts have demonstrated significant financial gains, with one ring amassing $3 million in just three months. This efficiency outpaces traditional pig-butchering techniques, showcasing the lucrative nature of these evolving scams. The streamlined approach allows scammers to exploit victims more swiftly and effectively.
Persistent Tactics Beyond the Initial Scam
The scam doesn't end with emptying victims' wallets. Criminals adopt a persistent approach, convincing victims that they can recover lost funds by adding more money.
Even when victims sever contact, scammers resort to alternative platforms like Facebook, WhatsApp, and Telegram. Some employ generative AI, such as ChatGPT, to create convincing messages, adding an extra layer of manipulation.
To avoid falling victim into pig butchering scams, don't easily engage with anyone online. Even though they appear to be trust-worthy, use your time to verify if they are legit. These apps are also on Google Play Store and Apple App Store so be wary about them every time.
It's easy to invest money if you are capable but if the scammers have already drained your wallet, there's nothing you can do but to pray that authorities will immediately catch those who are accountable for the scam.
Read Also: Blackbaud Must Improve Poor Security, Data Retention Practices to Avoid Future Breaches, Says FTC
