Pig Butchering Scams: Last Week Tonight with John Oliver (HBO)
Summary
TLDRThe video script unravels the alarming rise of a new online scam called 'pig butchering,' where victims are lured with false promises of love or lucrative investments, only to be bled dry financially. It delves into the intricate tactics employed by scammers, often exploiting people's vulnerabilities during the COVID-19 pandemic. Shockingly, many scammers are victims themselves, forced to work under deplorable conditions by organized crime syndicates. The script raises awareness about this rapidly escalating threat, urging caution and vigilance to combat this insidious form of cyber exploitation.
Takeaways
- ð Online shopping can lead to disappointment, exemplified by a woman who ordered a full-size tree but received a miniature one.
- ðū The internet is rife with scams, including the 'Pig Butchering' scam, which starts with a wrong number text and can lead to significant financial loss.
- ðļ 'Pig Butchering' scams involve a long con where victims are slowly lured into a false sense of security before being defrauded of large sums of money.
- ðą Victims of these scams can lose millions, and the emotional and financial impact is devastating.
- ðŧ Scammers use sophisticated methods, including creating legitimate-looking trading platforms and using real apps to simulate fake results.
- ðĄïļ Awareness and skepticism are crucial when dealing with unexpected contacts or investment opportunities, especially involving cryptocurrencies.
- ðĪ Some individuals behind these scams may themselves be victims of human trafficking, forced into scamming by criminal organizations.
- ðĻ International collaboration and law enforcement are needed to address the root of the scamming operations, often based in Southeast Asia.
- ðââïļ Everyone is potentially vulnerable to these scams, including tech-savvy individuals and professionals.
- ð It's important to educate friends and family about these scams to protect them from potential financial and emotional harm.
Q & A
What is the 'pig butchering' scam and how does it work?
-The 'pig butchering' scam is a type of online fraud where scammers cultivate a relationship with their targets, luring them into investing in a fake cryptocurrency trading platform. They initially establish contact through social media, dating apps, or wrong number texts, and slowly gain the victim's trust. Eventually, they persuade the victim to set up a seemingly legitimate trading account, but it's a fabricated platform controlled by the scammers. When the victim attempts to withdraw their supposed profits, they are asked to pay additional fees, leading to financial losses.
What factors contributed to the rise of the 'pig butchering' scam during the COVID-19 pandemic?
-Two key factors led to the rise of this scam during the pandemic: 1) Many people were isolated and seeking human connection online, making them more vulnerable targets, and 2) Organized crime groups in China, whose casinos in Southeast Asia were affected by COVID-19 restrictions, turned to running online scam operations from those locations.
How do the scammers create a sense of legitimacy for their fake trading platforms?
-The scammers go to great lengths to make their trading platforms appear legitimate. They create interfaces that mimic real trading platforms, complete with detailed functionality and branding. Some even use legitimate apps that allow anyone to build a trading exchange while manipulating the results. They may also set up additional features like two-factor authentication or customer service lines to further convince victims.
What role do human trafficking and forced labor play in the 'pig butchering' scam operations?
-Many of the individuals running the scam operations are victims of human trafficking themselves. They are lured to compounds under false pretenses of legitimate job offers, only to have their documents taken away and be forced to work for the criminal organizations, often in deplorable conditions and under threats of violence.
Why is the $3 billion estimated annual loss from this scam in the US likely an undercount?
-The $3 billion estimate is likely an undercount because it only includes losses reported to the FBI. Many victims do not report their losses due to embarrassment or humiliation, suggesting that the actual losses could be significantly higher.
What challenges do authorities face in shutting down these scam operations?
-In some cases, local authorities are complicit or bribed by the criminal organizations running the scams, making it difficult to take action. Additionally, the operations are often set up in countries with lax enforcement or where the scam industry generates a significant portion of the GDP, creating disincentives for crackdowns.
What steps can individuals take to protect themselves and their loved ones from falling victim to the 'pig butchering' scam?
-Individuals can raise awareness about this scam by sharing information with friends and family. They should be wary of strangers on dating apps or social media who quickly profess love or try to discuss cryptocurrency investments. It's also important to verify the legitimacy of any trading platforms or investment opportunities before committing funds.
How did the 'pig butchering' scam lead to the failure of a bank in Kansas?
-In Kansas, the CEO of Heartland Tri-State Bank, Sha Haynes, fell victim to the 'pig butchering' scam. He allegedly embezzled nearly $50 million from the bank to fund his investments in the fake cryptocurrency scheme, leading to the bank's failure in August 2022.
Why is it important to be kind and understanding towards victims of the 'pig butchering' scam?
-It's essential to be kind and understanding towards victims because the desire for companionship and the tendency to trust others are human qualities. The internet, meant to alleviate loneliness, has been exploited by scammers to take advantage of these vulnerabilities. Victims often feel humiliated and ashamed, making it important to approach them with empathy and support.
What humorous analogy does the script use to describe the confusion surrounding cryptocurrency?
-The script compares the MetaTrader logo, which depicts three men in suits seemingly engaged in an inappropriate act, to a metaphor for cryptocurrency, implying that the concept of cryptocurrency is often misunderstood or confusing.
Outlines
ðŪ The Pig Butchering Scam: A Harrowing Tale of Deception
This paragraph introduces the topic of the 'Pig Butchering Scam', a widespread and lucrative online scam that has taken billions of dollars from unsuspecting victims. It highlights the scam's modus operandi, which begins with an innocuous text message or contact on social media, followed by a gradual process of building trust and eventually leading the victim to invest in a fake cryptocurrency trading platform. The paragraph sets the stage for a detailed exploration of this scam's ins and outs.
ðĢ The Lure: How Scammers Reel In Their Victims
This paragraph delves into the initial stages of the Pig Butchering Scam, detailing how scammers make contact with potential victims through various means, such as wrong number texts, dating apps, social media, or professional networking sites like LinkedIn. It showcases examples of scammers using social engineering tactics to establish common ground and build a rapport with their targets. The paragraph also explains how scammers present the illusion of a legitimate investment opportunity in cryptocurrency, leveraging the victim's lack of knowledge and the perceived legitimacy of trading platforms.
ðŠĪ The Trap: Fake Platforms and Psychological Manipulation
This paragraph explores the sophisticated methods employed by scammers to lure victims deeper into the Pig Butchering Scam. It discusses the use of realistic-looking cryptocurrency trading platforms, complete with detailed interfaces and simulated results, to instill a false sense of confidence in the victim's supposed investments. The paragraph also highlights the psychological manipulation tactics used by scammers, such as flattery, emotional appeals, and the exploitation of vulnerabilities like loneliness or financial desperation. Real-life accounts from victims who lost significant sums of money are included to illustrate the devastating consequences of falling for this scam.
ðĩïļ Behind the Scenes: The Organized Crime Networks
This paragraph pulls back the curtain on the criminal organizations behind the Pig Butchering Scam. It reveals that many of the scammers are victims themselves, lured into these operations under false pretenses or coerced through human trafficking and forced labor. The paragraph sheds light on the brutal conditions and abuse endured by those trapped in these scam compounds, often run by organized crime syndicates in Southeast Asia. It also addresses the challenges faced by authorities in shutting down these operations, as some are deeply entrenched and even facilitated by corrupt officials.
ðĄïļ Raising Awareness and Protecting Yourself
The final paragraph focuses on measures to combat the Pig Butchering Scam and protect potential victims. It emphasizes the importance of raising awareness about this scam, as knowledge and vigilance are key to preventing people from falling prey. The paragraph encourages viewers to share information about the scam with friends and family, highlighting that it can happen to anyone, regardless of age or technological savviness. It also suggests being cautious of strangers on dating apps or social media who quickly mention love or cryptocurrency investments. Overall, the paragraph stresses the need for a collective effort to curb the scam's proliferation and support for those who have been victimized.
Mindmap
Keywords
ðĄScam
ðĄCryptocurrency
ðĄVulnerability
ðĄHuman Trafficking
ðĄOrganized Crime
ðĄAwareness
ðĄSocial Media
ðĄRed Flags
ðĄEmpathy
ðĄInternational Cooperation
Highlights
The internet, while magical, can also be deceiving, as exemplified by a woman who ordered a full-size tree but received a miniature one.
Scammers exploit vulnerabilities, especially during isolated times like the COVID-19 pandemic, leading to the rise of 'pig butchering' scams.
Pig butchering scams involve a process of building trust and exploiting it for financial gain, metaphorically 'fattening' the victim before 'butchering'.
A bank CEO fell victim to a pig butchering scam, leading to a $50 million loss and the bank's failure.
The scam is successful partly because it uses legitimate-looking platforms and cryptocurrency investments to deceive victims.
Victims of pig butchering scams lose significant amounts of money, with an estimated $3 billion lost annually in the US alone.
Organized crime groups in China and Southeast Asia, running online scam operations, are a major force behind these scams.
Many individuals forced into executing these scams are victims of human trafficking, coerced into working under severe conditions.
The scam operations are sophisticated, using manuals and strategies to effectively manipulate and exploit targets.
Authorities in some regions are complicit or unable to combat the scam operations due to their massive financial impact.
Awareness and education about pig butchering scams are crucial for prevention and reducing the scam's profitability.
The internet's potential to alleviate loneliness is exploited by scammers, highlighting the importance of vigilance online.
Platforms and law enforcement need to collaborate more effectively to prevent scams and protect potential victims.
The societal and emotional impact on victims of pig butchering scams is profound, emphasizing the need for compassion and support.
The scam's success across diverse demographics, including tech-savvy individuals, underscores that anyone can be a potential target.
Transcripts
our main story tonight concerns the
internet it can be a magical place but
also one where things aren't always what
they seem as this woman learned the hard
way Queen shadana Haynesworth thought
she bought this the Instagram ad
displaying a tree that fits in a living
room not the palm of her hand
yo this is
Christmas like seriously
like who is responsible for this yeah it
must been pretty disappointing to order
a full-size tree and get whatever that
is she must have felt like HBO did when
they ordered a comedy show and got this
instead unfortunately not every mistake
is that benign it is not news that there
are scammers on the internet but you may
have noticed that one scam in particular
is currently everywhere a common way
that it starts is with a weird text from
a number that you don't recognize like
Cheryl can we move lunch to 5 when
you're not Cheryl or Dave what time is
our flight when you're not Dave and you
don't have a flight booked even as we
worked on this piece multiple members of
our staff and their friends were getting
these messages from hello is this the
manager Jesse from the flower shop to
this one reading is this Dr John I'm
Emily is my horse recovering well and
I'm so glad that wasn't sent to me cuz
it would have worked you're calling me
Dr John I'm instantly on board and
you're assuming that I'm around a for
medical reasons that's exactly what I've
been saying I'm allowed to touch it like
that I'm a
doctor and I know most people ignore
messages like those but some right back
get sucked into a conversation and
eventually through a process that we'll
get into can end up losing a lot of
money it's a scam with a striking name
that newscasters can't seem to get over
it's called a pig butchering scam and it
might sound like a gruesome name but
that's because the amount of money
victims are losing is painful the
scammers have a terrible term for what
Wendy went through they call it Pig
butchering the New Mexico security
division calls them Pig butchering scams
I know but listen don't worry there are
no pigs or any other animals involved
yes don't worry there are no pigs harmed
in this pig butchering scam although if
the words do make you squeamish it's
worth noting that there is a process
through which pigs are harmed every day
it's actually how we get bacon pork and
other product it's called Pig butchering
and it's exactly what it sounds like but
the name makes a little more sense once
you understand how the scam actually
works in the world of cyber and
counterterrorism threats special agent
hasani has seen it all but in 2021 he
began seeing a new scam Pig butchering
but it just refers to raising little
piglets fattening them up and butchering
them and they're fattening up their
victim with illusions of grandeur of
wealth of love before bleeding them dry
that is rough because imagine being a
victim of this scam turning on the news
and suddenly learning that the short
handful people in your situation is the
pigs although we say it could have been
worse pigs are awesome they're one of
the most intelligent animals on the
planet they're smarter than dogs most
three-year-olds and Tom sandal to use a
phrase that the police never seem to
appreciate It's actually an honor to be
compared to a pig and if you are
thinking well this seems like the kind
of scam that's been around for decades
that is partially true but the way this
one works is fairly new and in the short
time that it's been around it's been
massively successful just this month it
was at the center of a huge local news
story in Kansas where it brought down a
financial institution I was surprised I
was shocked I was disappointed Kansas
State Bank commissioner David hearnden
is talking about the massive
cryptocurrency scam at the Heartland
Tri-State Bank in Elkart and a
cryptocurrency scheme that the FBI is
now referred to as Pig butchering in
this case hearen says the victim was sha
Haynes the bank's own CEO and he's now
facing charges of embezzling nearly $50
million a loss that caused the bank to
fail last August that's true according
to prosecutors a bank CEO got Peak
butchered sent his scammer the bank's
Holdings and the bank went under which
is alarming for several reasons among
them is that how Bank
work cuz it really feels like there
should be at least one step between CEO
gets tricked and whoops the bank's
empty it's estimated that as of 2022
this scam was taking people for more
than $3 billion a year in the us alone
and that's almost certainly a massive
undercount as it only includes people
who reported their losses to the FBI so
given all of that tonight let's talk
about Pig butchering why it's easier to
fall for than you might think who's
behind it and what we can do to protect
ourselves and our liked ones from
getting scammed in the future and let's
start with where this began and to do
that unfortunately we do need to go back
to the place that no one wants to go the
beginning of covid you remember Co it's
the Steven Miller of diseas isn't that
we were all very worried about it a few
years ago and have since moved on even
though it's still extremely dangerous
but that is when Pig butchering took off
basically at the start of covid many of
us were isolated and lonely desperately
looking for human contact online which
made us ripe targets at the same time
organized crime groups in China running
casinos in Southeast Asia were in crisis
as thanks to the pandemic gamblers
weren't showing up so they turned those
casinos into bases for online scam
operations and from there their workers
identified people and prayed on their
vulnerabilities and let me walk you
through the basic steps here the first
is to make contact and lure your Target
in listen to this woman explain how her
scammer who called himself self Jimmy
contacted her at a moment when she was
dealing with cancer the pandemic and the
end of her marriage first message it
came as a very innocent
message I said wrong
number he came back you look Chinese are
you Chinese and I said yes he had moved
here just before Co and then Co hit and
so he's not able to go
[Music]
home he was
a a lonely man in need
of comfort Jimmy would message me every
day I do remember receiving these Emojis
with
[Music]
hearts it's quite flattering for a
middle-aged woman to meet a a young man
who finds you attractive yeah of course
that's flattering because scammers are
telling their targets what they want to
hear most in that moment we might not
all fall for a gift of a heart pumping
Emoji but if someone sent me nerd with
glasses plus football plus learning plus
sad statistics equals fire Emoji me
personally why I would not and look one
way of making contact is through those
wrong number text but experts that we've
talked to estimate that they only make
up about a quarter of the initial
contacts for this scam the rest can come
through sites like LinkedIn dating apps
Instagram or Facebook places
specifically designed for you to meet
people that you don't know either for
love a hookup or in the case of LinkedIn
to find out what kind of person is still
on
LinkedIn and scammers often research
their target using social media where
there is a lot of information about
people so they can pretend pretend to
have something in common take this woman
who met someone on a dating app only to
discover that they shared an unexpected
connection he started asking questions
about my family and my past experiences
it was a connection that felt even
stronger she says when he told her he
came from the same town in China from
where Hutchinson was adopted we kind of
bonded over that yeah I bet they did
I've got to say it says something about
men on dating apps that they connected
so well simply because he did things
like ask her questions about herself and
listen to her responses I don't want to
say the bar for men is low but that
story started with him asking her
questions about her life and ends with
her giving him all of her money but
regardless of how they start sooner or
later we move on to step two turning the
conversation toward money but even then
there's a smart twist because you won't
be suddenly asked to wire money to a
Nigerian prince with an obviously fake
email like real Prince spelled with a
one instead of an i at scum. farts
with pig butchering there's no direct
ask for money at all instead an
opportunity gets presented to you just
watch as this man explains the moment
when a guy that he met on a dating site
started to reel him in he spent at least
a month daily talking to me in in
cultivating my friendship initially the
only talk about money was how much his
new online friend had made in crypto
after all Scott thought he knew how to
protect himself from scams you can
invest with me and I'll make you all
this money and like I'm not giving you
money um that's not happening um so
that's when he started no you don't give
it to me you establish your own account
and I'll guide you right that's the
clever hook here you're not sending the
scammer money they're helping you set up
and control your own account and
everything seems more legitimate when
there's an app involved you don't think
so when is the last time you took an
Uber oh getting a nondescript car with
someone I've never met I would never do
that but wait watch this I can do it
from my phone well in that case here's
my address now you know where I live and
that I won't be home for the evening my
name's John I don't know your last name
but that doesn't matter cuz I'm also not
committing your face to memory
everything's safe there's an app
involved and the fact the investment is
often in crypto can be persuasive for
multiple reasons first who really knows
how crypto works I know your friend's
weird husband claims that he does but he
sucks to talk to so sadly it must remain
a
mystery but people have made money on
crypto so it's not reasonable to think
you might meet one of them and they
could give you some tips on top of which
you may not be super familiar with how a
trading platform operates or even what
one looks like and scammers have created
incredibly plausible looking platforms
we got this footage of one which seems
to have all the detail and functionality
of a real one and and I'll be honest I
could be fooled by that also some
scammers use legitimate apps that allow
anyone to build a trading exchange the
problem is there are tools that scammers
can use to simulate fake results on
those apps while taking your money just
watch this journalist explain how this
gave one victim false confidence in
metatrader it looks just like any kind
of normal trading interface that one
would use that's available in the Google
Play Store it's available in the Apple
App Store it's an app that has a lot of
good ratings and that was one of the
things that made Sai think that this
whole operation was legitimate he
believed that his investment was making
money if you're trading on a legitimate
trading interface right you see the
profits and losses uh over time and this
is exactly what he saw right if your
friend told you to download an app and
you saw it in the App Store with good
reviews you might assume everything on
it was legitimate even before you saw
metatrader logo which looks like three
men in suits jerking each other off
under a table an appropriate metaphor
for cryptocurrency if I have ever seen
one some scammers even set up additional
features like two Factor authentication
or customer service lines this woman
tried her best to do due diligence on
the site that she was sent and came away
convinced that it was real there was a
legal secretary involved in another
state vouching association with a law
firm where it was sending money to she's
real I could verify her so it was very
complex and well rehearsed right she
spoke with a legal secretary and a law
firm before sending money and that is
more vetting than I've done for my kids
daycare look I love them and they're
very precious to me but they're also
loud sticky and one of them is just
getting stronger and stronger every day
so if you have a building with walls and
a phone number that I can call I trust
you take them for the afternoon and at
this point of the process things might
look pretty good for the people getting
scammed you've sent a bit of money to a
legitimate looking site through an
account that you control and your new
friend's trading tips seem to be working
so maybe you send a little bit more and
pretty soon you might have a fair amount
of money tied up on this trading
platform but when you eventually go to
withdraw it that is where we hit the
final step of this process remember that
woman you saw earlier whose online
friend claimed that he was from the same
town where she was born well she'd
convinced her dad to invest as well
they'd seemingly made a bunch of money
and then this happened by December their
accounts showed a combined balance of
$1.2 million and Hutchinson decided it
was time to cash out that's when the
site told her before she could withdraw
her money she'd have to pay a hefty tax
bill of rough
$380,000 that's when I was like
something's not right it wasn't the
cryptocurrency Investments weren't real
all her and her father's funds had gone
into the scamers pockets in all
$390,000 stolen I messed up my life I
messed up my Dad's life she told me that
it was all a scam Hutchinson's father
Melvin and all I could do was just hug
her and tell her it's okay okay it's
it's okay and uh it was hard it was hard
cuz we lost everything yeah their money
had already gone and that tax bill was
just an attempt to squeeze them one last
time and there's isn't the only brutal
story here this woman lost
$350,000 this guy lost 300,000 and that
woman who fell for Jimmy sent him 2 and
a half million as she was dealing with
terminal cancer it is traumatic and it's
humiliating and it took courage for
those people to come forward and that is
partly why experts think the $3 billion
figure that we have is way too low
because most people who've been scammed
like this simply don't report their
losses out of embarrassment and at this
point you're probably furious with the
people on the other end of all of these
messages want to see them taken down or
at the very least with and that
does happen a lot people post screen
grabs messing with scammers all the time
like in this exchange where someone
replies to wrong number text with my
name is inego Montoya and you don't by
any chance have six fingers on your
right hand do you or this one where a
scammer writes I'm Sarah nice to meet
you with a picture and guess the reply
we woo we woo boner alert and look look
I'll be honest that doesn't seem like
the right sound to me that's not what I
probably would have gone with auga auga
Boner alert but reasonable people could
disagree all bodies are different
there's no one right sound for a boner
alert but here's the thing as cathartic
as that might be
the person on the other end of that
phone might not be the one you should be
mad at cuz remember when I said that
this would being done in former casinos
by organized crime syndicates it turns
out they're not great bosses this
compound is where an Indian man named
Rakesh says he was forced to work for
more than 11 months without pay for a
Chinese criminal gang Rakesh who doesn't