How to stay protected from pig butchering financial scams? Here are 7 key steps

In simpler terms, pig butchering is a version of smishing where scammers use social media platforms for cyber theft. As the name suggests, the victim is being ‘fattened up’ through validation and friendship before ‘butchering’ i.e. stealing of funds. A simple ‘Hi/Hello’ on a social media platform from a stranger’s profile can turn into a big scam.

Also Read: ‘Pig butchering’ scams: Zerodha’s Nithin Kamath explains how these work, shares ways to remain protected

How does the pig butchering scam happen?

Receiving messages or calls from wrong numbers was a rare occurrence a few years back. However, calls, text messages and connection requests from unknown people are becoming a frequent event on social media and dating applications. As the online relationship progresses, the scammer introduces what seems like a golden investment opportunity. 

This less recognized yet equally harmful tactic involves fake job offers. Here, scammers prey on job seekers by offering attractive positions, sometimes overseas. They use emotional manipulation to build trust.

Scammers often go the extra mile by creating fake apps and websites that mimic real financial institutions. Throughout the scam, there’s a heavy reliance on emotional manipulation. The scammer might act as a romantic interest or a supportive friend. This emotional connection makes it harder for the victim to doubt their intentions.

Once trust is established and the victim is emotionally invested, significant financial transactions are initiated. Whether it’s through fake investments or fraudulent job offers, the end goal is the same: to drain as much money as possible from the victim.

Also Read: Beware of Scams: Tips for safely investing in the digital world

Important steps to protect from these scams

Stay informed: The first step in protecting yourself from financial fraud is to be aware that these scams exist. Knowing how they work can help you identify and avoid them before it’s too late. Scammers are constantly devising new and sophisticated tactics to exploit vulnerable people, so it’s important to stay vigilant.

Always double-check: If someone online suggests an investment or job, research it thoroughly. Look up the company or offer online, read reviews, and see if it’s recognized by official authorities.

Be vigilant with online friends: Always be cautious when talking to people you just started talking with, especially if they start talking about finances or investments. Avoid discussing financial matters with people online.

Keep personal information to yourself: Never share your personal or financial details like bank account details, passwords, and other sensitive information with someone you’ve just met online. Sharing personal information makes it easier for scamsters to hack into your bank accounts, so be wary of who you share it with.

Never make rushed financial decisions: If you’re being pressured to invest quickly or pay for a job opportunity, that’s a major red flag. Scammers often try to create a sense of urgency, pushing you to act before you have time to think it over. Take the time to verify the legitimacy of any investment or job prospect.

Always check the source: Don’t just take their word for it. Do your research. Look up the company or investment platform they mention. Check for the company’s physical address, licensing information, customer reviews, and social media presence. Cross-reference details across multiple reliable sources.

Get a second option before investing: Before making any investment or sharing personal details, talk to someone you trust like a family member who knows finances, a friend or a professional financial advisor. Sometimes, just talking about it out loud can reveal red flags you might not have noticed initially.

Also Read: Shielding your digital assets: How cyber insurance can provide a safety net in the face of growing cyber threats

Key takeaway

While scammers continue to devise new and sophisticated tactics, arming oneself with awareness, caution, and diligence is the key. By staying alert to the warning signs, verifying the legitimacy of any opportunities presented, and resisting the urge to make rushed decisions, individuals can significantly reduce their risk of becoming victims. 

If a proposition or investment opportunity seems too good to be true, trust your instincts and analyse it carefully. It’s better to miss out on a potential opportunity than to lose your hard-earned money to a clever con artist.

Dhiren .V. Dedhia, Head – Enterprise Solutions, CrossFraud

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Published: 27 Apr 2024, 10:31 AM IST