The speed of fraud development
In 2024, there has been a marked increase in the popularity of pig butchering fraud, which is becoming increasingly attractive to criminals. According to the Chainalysis report, fraudsters are increasingly moving from complex and time-consuming schemes to faster and simpler methods of deception.
Reducing the duration of fraudulent schemes
According to the study, the duration of fraudulent schemes has decreased significantly. While in the period from 2020 to 2024, the average ‘lifespan’ of complex Ponzi schemes was 271 days, in 2024 this figure dropped to 42 days. This indicates that fraudsters are moving to more targeted and effective methods, such as pig butchering or address poisoning.
An example of fraudulent activity
One example of such activity is the KK Park organisation in Myanmar. In 2024, this organisation was able to earn $101.22 million through its fraudulent schemes. KK Park employees actively use purchased profiles on social media sites such as Facebook and Tinder to attract victims to their schemes.
How the pig butchering scheme works
A pig butchering scheme involves fraudsters carefully ‘fattening’ their victims by engaging them in communication and gradually convincing them to invest large sums of money. One striking example is the case in China, where a teacher lost $546,000 by investing in a ‘profitable bitcoin project’ that turned out to be a scam.
Source of information and photo: dotsecurity.