The San Marino Police Department is warning residents to be wary of the “Pig Butchering Scam,” also known as “Shaz Hu Pan,” which often involves scammers contacting targets seemingly at random to gain their trust before manipulating them into phony investments and disappearing with the funds.
The scam’s name is in reference to the practice of fattening a pig before slaughter, said SMPD, which also explained that in most cases a stranger will contact a victim out of the blue via text message, social media or on a messaging application, such as WhatsApp or WeChat and attempt to build rapport. Over the course of days, weeks or even months, the scammer will likely send messages about personal, noninvestment-related topics. Though these scams can be presented in different ways, inevitably the scammer will at some point steer the conversation toward investment-related topics, often asking about investment or crypto accounts.
The goals for the next phase of the scheme are twofold: to create the perception that the victim will make money by following their instructions and to ensure that the victim has the means to invest in the forthcoming fraudulent investment.
Capitalizing on the relationship they have established, scammers will point to impressive gains from initial investments and urge the victim to deposit increasingly larger amounts. Once done, however, the switch will flip, often leaving the victim facing devastating losses.
“The price of a stock that seemed poised to take off might rapidly plummet once the scammer’s market manipulation kicks into high gear,” SMPD said in a statement. “Or the new crypto platform you recently moved your assets into might suddenly become inaccessible.
“Once the scammer has achieved the hoped level of investment from the victim, they will clear out the account [of money] and vanish,” SMPD added. “Combining investment schemes, romance scams and cryptocurrency fraud, the pig butchering scam is a long-term deception.”
Here are some tips from SMPD to prevent being scammed:
• Don’t respond to texts or direct messages on social media from strangers.
• Don’t overshare on social media accounts.
• There is no such thing as instant money when investing. Avoid anything with guaranteed rates of return or promises of doubling money.
• Never send money, credit card or banking information to unknown individuals.
First published in the Jan. 4 issue of the San Marino Tribune
