Pig butchering scams have become a concerning criminal activity, entailing online romance fraud, fake crypto investments, and human trafficking. The impact on US citizens has been devastating, resulting in significant financial losses. Erin West, Deputy District Attorney in Santa Clara, California, reveals the escalating issue and the urgent need for action.
The Escalation of Pig Butchering Scams
In a recent interview, Erin West highlights the alarming increase in pig butchering scams. She receives an average of 5-6 emails daily from victims of this deceitful scheme. West shares, “We are receiving 5-6 emails a day from people who are victims of pig butchering. The most recent victim lost $5 million dollars, and that’s not even the largest amount one victim has lost to this scam.”
The stolen funds from these scams are funneled overseas to transnational criminal organizations located in Myanmar and Cambodia. Disturbingly, these criminal organizations exploit trafficked individuals, using them as virtual slaves to carry out the pig butchering scams.
According to TRM Labs, a leading blockchain intelligence company, the FBI’s Internet Crime Complaint Center (IC3) has received over 4,300 complaints related to pig butchering, with cumulative losses surpassing $400 million. Reports from FBI field offices indicate that the surge in pig butchering shows no signs of abating.
Tackling Pig Butchering Scams: A Collaborative Approach
To combat pig butchering scams in the United States, Erin West has developed a prosecutorial blueprint. As an integral member of the Regional Enforcement Allied Computer Team (REACT) Task Force, West specializes in investigating high-tech crimes. When she encountered her first pig butchering scam, West recognized the importance of enlisting the assistance of Binance, the world’s largest cryptocurrency exchange, to unravel the intricate workings of the operation.
West explains, “We obtained a search warrant for Binance, and they cooperated by providing the requested information. This collaboration enabled us to create a blueprint that aided in the recovery of funds for 26 victims. We disseminated this blueprint nationwide, offering assistance to other victims.”
Pig butchering scams are essentially meticulously calculated long-term cons that resemble romance scams. They are designed to siphon off substantial wealth to criminals located on the opposite side of the globe. West emphasizes the need for a comprehensive “whole-of-government” solution to combat this growing threat.
Despite facing losses of around $2 billion due to crypto thefts, the crypto industry experienced a slight decline in hacking incidents targeting the cryptocurrency sector in 2023. According to a recent report from De.FI, a prominent web3 security firm known for its REKT database, hackers managed to pilfer $2 billion in digital assets throughout the year. Although this amount is concerning, it marks the first decrease in crypto hacking incidents since 2021.
The REKT database ranks the most devastating crypto hacks, ranging from the historic breach of the Ronin network in 2022, where hackers looted over $600 million in crypto, to the recent attack on Mixin Network, resulting in a haul of approximately $200 million. De.FI states, “This cumulative amount of stolen funds, spread across multiple incidents, highlights the ongoing vulnerabilities and challenges within the DeFi ecosystem. 2023 served as a testament to both the persisting vulnerabilities and the progress made in addressing them, despite muted interest in the space during the first half of the year due to the ongoing bear market.”
