What Is A Pig Butchering Scam? How It Works And Warning Signs

What Is A Pig Butchering Scam? How It Works And The Warning Signs

"You keep filling a piggy bank until the day you break it."

On the Accompany Akki podcast, cyber crime expert Dr. Kanishk Gaur, who teaches at IIT Delhi and MDI Gurgaon, explained pig butchering scams and the industry behind them.

What is pig butchering?

Pig butchering is a long-con investment scam. The victim is treated like a piggy bank, filled with trust until the scammers extract as much money as possible.

How a pig butchering scam works

1. Introduction: The victim is shown an investment opportunity, often crypto or trading.
2. Early wins: They invest a small amount and are allowed to withdraw some money, making it feel real.
3. Fake profits: A dashboard shows growing gains, encouraging bigger investments.
4. Withdrawal block: To withdraw profits, the victim is told to pay tax.
5. More fees: Then a government regulation or compliance fee is cited.
6. Maximum extraction: This continues until the victim has nothing left to give.

Warning signs

This section is general guidance, not from the conversation.

• Investment offers from strangers or new online contacts
• Promises of high or guaranteed returns
• Small early withdrawals used to build trust
• Demands for tax, regulatory or verification fees before withdrawing
• Pressure to invest more quickly

Who runs these scams?

According to Dr. Gaur, many scams are run from compounds in Southeast Asia, including Cambodia, some linked to groups like Prince Group and Kings Romans Group. Many were casinos before COVID.

• Workers from India, Sri Lanka and Bangladesh operate high-end computer setups.
• He says many go willingly for Rs 1 to 1.5 lakh a month plus food and housing. Other reports show many are trafficked.
• Workers get daily targets of Rs 20 to 25 lakh, with incentives, promotions, HR teams and "employee of the month" awards.

Other common scams in India

• Loan app scams: Loans at 2 to 3 percent, then inflated EMIs of 35 percent or more, with threats to contact your family.
• Phishing: Attempts to get you to install APK files.
• Courier and digital arrest scams: Fake FedEx parcel calls.
• OTP scams: Fake Amazon vouchers requiring a code.
• Telegram trading groups.
• Money laundering apps.

Even CEOs get scammed

Dr. Gaur described the CEO of a Rs 25,000 crore retail company who shared a PIN after a courier call. Scammers took over his calls and messages, created a WhatsApp account in his name, and asked his CFO to pay Rs 50 lakh to a fake vendor.

What to do if you've been scammed

• Stop paying any further fees.
• Report immediately on 1930 or at cybercrime.gov.in.
• Save screenshots, chats and transaction details.
• Alert your bank.

Key takeaways

• Pig butchering builds trust before taking everything.
• Paying fees to withdraw profits is a major red flag.
• Scam centres operate like real companies.
• Anyone, including senior executives, can be targeted.

Watch the full episode: https://youtu.be/E_qWVpBRfgg

Join the Accompany Akki WhatsApp channel: https://wa.openinapp.co/a46ji

Have you ever received an investment offer that seemed too good to be true?