Schools teach you 1,000,000 useless things.
But they don't teach you how to protect yourself from financial scams.
Today I am going to teach you about a scam called "Pig Butchering" and how to protect yourself from it.
🧵 👇
But they don't teach you how to protect yourself from financial scams.
Today I am going to teach you about a scam called "Pig Butchering" and how to protect yourself from it.
🧵 👇
1/ Pig Butchering is a form of a financial scam which has a template.
It starts usually with a chat or a call.
It could be on any platform.
What starts as an innocent chat turns into an investment advice.
As the victim is hooked, they are tricked into spending more.
It starts usually with a chat or a call.
It could be on any platform.
What starts as an innocent chat turns into an investment advice.
As the victim is hooked, they are tricked into spending more.
2/ Once enough money has been milked from the unassuming victim, the scammer absconds with cash.
This is a modern day form of online romance scams.
Instead of only romance, the Pig Butchering scams can start off as any kind of personal or professional relationship.
This is a modern day form of online romance scams.
Instead of only romance, the Pig Butchering scams can start off as any kind of personal or professional relationship.
3/ Scammers usually pose as
- Long-lost school friends
- Potential Lovers
- Popular social media influencers/personalities
to start the relationship with you.
Naive victims who get hooked will then be passed to the next stage.
- Long-lost school friends
- Potential Lovers
- Popular social media influencers/personalities
to start the relationship with you.
Naive victims who get hooked will then be passed to the next stage.
4/ Once the naive victims believe and get hooked, the scammer starts the "trust building" phase of the relationship.
They share fake information about themselves.
They fabricate enough tidbits about their life.
But, it's the victims who end up talking more and sharing more.
They share fake information about themselves.
They fabricate enough tidbits about their life.
But, it's the victims who end up talking more and sharing more.
5/ Eventually once trust is formed, the conversations delve into finance and investments.
It will start small and eventually snowball into a big loss for the victim if the victim isn't smart enough to catch on.
It will start small and eventually snowball into a big loss for the victim if the victim isn't smart enough to catch on.
6/ How the scammers accomplish it is an incredible use of technology to accomplish the scam.
They trick you into depositing money into platforms (crypto is very hot right now, but could be stock markets also) that they can somehow control.
They trick you into depositing money into platforms (crypto is very hot right now, but could be stock markets also) that they can somehow control.
7/ These platforms/apps, while they look authentic, are usually bogus, and these scammers have a backdoor to manipulate what you see.
Once you invest money following the investment advice given by the scammer, you usually see your investment go into profit.
Once you invest money following the investment advice given by the scammer, you usually see your investment go into profit.
8/ What happens is, you're manipulated into seeing profits, while something else happens at the backend.
In reality, the scammers are in control of your backend and trick you into seeing what they want you to see.
In reality, the scammers are in control of your backend and trick you into seeing what they want you to see.
9/ Once they have you convinced that you're actually seeing great returns on your investments,
they "fatten" you - trick you into spending more and more
and eventually "butcher" you - where they abscond with cash.
You're the "pig".
Hence the term "Pig Butchering".
they "fatten" you - trick you into spending more and more
and eventually "butcher" you - where they abscond with cash.
You're the "pig".
Hence the term "Pig Butchering".
10/ A 52 yo man from California lost close to $1million falling victim to one such scam.
It was done this way:
After establishing a sort-of an online romance & trust, the man was tricked into downloading the MetaTrader app from the Apple appstore.
It was done this way:
After establishing a sort-of an online romance & trust, the man was tricked into downloading the MetaTrader app from the Apple appstore.
11/ Initially, the man was asked to try the ideas in "simulation mode".
Once he saw one or two trades work and go into profits, he was ready to try it live.
Once he saw one or two trades work and go into profits, he was ready to try it live.
12/ He tried the first trade with $10,000 and saw profits within few days.
As the profits appeared to grow in his account, he added more money.
Net net, once the scam was mature enough, he'd sunk $1M into it thinking he was making profits.
As the profits appeared to grow in his account, he added more money.
Net net, once the scam was mature enough, he'd sunk $1M into it thinking he was making profits.
13/ How was a legitimate platform such as Metatrader used to scam someone?
Metatrader has a plugin for licensees called "Virtual Dealer".
This can be used by scammers to
- change market prices
- simulate account balances
- manipulate P&L
Check the screenshot below on how:
Metatrader has a plugin for licensees called "Virtual Dealer".
This can be used by scammers to
- change market prices
- simulate account balances
- manipulate P&L
Check the screenshot below on how:
14/ In 2021 alone, more than 24000 Americans were scammed this way, for over a billion dollars.
The scammer purchases metatrader license from a reseller (instead of MetaQuotes) and uses these third party plugins to establish a fake broker and siphon money.
The scammer purchases metatrader license from a reseller (instead of MetaQuotes) and uses these third party plugins to establish a fake broker and siphon money.
15/ Today, financial scams have evolved so much along with the technological advancements.
Look at this video:
youtube.com
For a moment there, I legit thought it was Elon Musk for the first 5-7 secs.
There are subtle things in it by which you can tell it's fake.
Look at this video:
youtube.com
For a moment there, I legit thought it was Elon Musk for the first 5-7 secs.
There are subtle things in it by which you can tell it's fake.
16/ With technology advancing rapidly, it's going to be a matter of few years before scammers become way too advanced too.
It will get very difficult to discern between what's legit and what's not.
It will get very difficult to discern between what's legit and what's not.
17/ So, parting advice:
- Like with anything, always do your own due diligence.
- Never take investment advice from anyone without establishing credibility in real life (preferably meeting them properly offline)
- Always watch your back, financially.
- Don't be stupid.
- Like with anything, always do your own due diligence.
- Never take investment advice from anyone without establishing credibility in real life (preferably meeting them properly offline)
- Always watch your back, financially.
- Don't be stupid.
18/ You can learn more about this scam from the following blogs/articles:
forbes.com
globalantiscam.org
tripwire.com
news.bitcoin.com
abc.net.au
forbes.com
globalantiscam.org
tripwire.com
news.bitcoin.com
abc.net.au
That's a wrap!
If you enjoyed this thread:
1. Follow me @thebuoyantman for more of these
2. RT the tweet below to share this thread with your audience
If you enjoyed this thread:
1. Follow me @thebuoyantman for more of these
2. RT the tweet below to share this thread with your audience
Also, if you didn't know, I publish a weekly newsletter here:
zenandalpha.substack.com
In the newsletter, I share useful resources to become a better trader, and also on personal/professional betterment in life.
Do check it out and subscribe to hear from me every weekend.
zenandalpha.substack.com
In the newsletter, I share useful resources to become a better trader, and also on personal/professional betterment in life.
Do check it out and subscribe to hear from me every weekend.
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