Pig-Butchering Becomes A Major Payment Scam Threat

Pig butchering has been revealed as one of the major customer scams currently. This report was shown in Visa’s Biannual Threats Report, its Spring 2024 Edition. The announcement shows that about 10% of surveyed adults have been targeted.

Fraudsters who use this method force victims of human trafficking to deceive other people into placing their money into phony crypto investments. After they have seen significant customer investment, they disappear with their cash. Interpol has identified pig butchering as a major scam trend in every continent in the universe.

According to the latest news, it’s important to strengthen data analysis and collection to develop an effective and more informed counter-strategy. This is to protect customers from being victims of this scam, thereby risking their bank accounts.

Scammers Consider Pig Butchering A Highly Profitable Scam

The Financial Intelligence Unit Director at RedCompass Labs, Silvija Krupena, has twenty years of experience in preventing financial crime. She revealed that the advancement in technology and many human trafficking victims falling by the wayside have made pig butchering a highly profitable scam for criminals.

Silvija has advised on the need to prioritize education and that financial institutions should focus more on their data. She also urges banks to take a more positive approach to intervene before reaching a point of irreversible loss.

She mentioned that this scam has become a highly beneficial one for fraudsters as one gang had stolen more than $100 million in under two years from victims. The actual scale is significantly more severe.

Krupena spoke further, revealing that to tackle this thoroughly, education should be the main focus. She revealed that anyone can get scammed, it will just take a moment for scammers to utilize the right script.

Krupena Urges Banks To Increase Their Scam-Battling Efforts

Banks should increase their efforts in battling this scam. They must transit from the usual “box-ticking compliance” culture and make sure that there is a high focus on their data, Krupena said.

This scam continues to increase over time. The first payments made by victims often seem to be successful investments. Victims could withdraw their first gain. This will build trust and confidence. As the fraud begins, payment providers and banks are always at the forefront.

The Chief Risk Officer of Visa, Paul Fabara, mentioned that with the highly evolving Generative AI ecosystem and other growing technologies, scams look more convincing than ever. This has made customers lose a significant amount of money.

Paul revealed that Visa is set to address the scam threats. The company has placed an investment of more than $10 billion in innovation and technology over the last five years. This investment allows the firm to stay ahead of fraud and protect customers, he said.