Warning as 'Pig Butchering Scams' Cost Billions Globally

The Rise of Pig Butchering Scams and the Global Fraud Crisis

In early 2025, a wave of panic swept across Chinese social media following reports of fraud and human trafficking. The incident began when a well-known Chinese actor, Wang Xing, was lured to Thailand for an audition but instead found himself kidnapped by criminals and taken to a scam center in Myanmar. After being reported missing, the Thai police managed to locate and return him within three days. However, the details of the operation remained undisclosed, fueling speculation that withholding information may have been part of a deal to secure his release.

During his time in the compound, Wang reportedly had his head shaved and claimed he was subjected to the first phase of training on how to carry out scams. This experience highlights the growing threat of a specific type of fraud known as "pig butchering," which has become increasingly prevalent in recent years.

Understanding Pig Butchering Scams

Pig butchering scams are a form of financial deception that typically involves three stages: hunting, raising, and killing. In the hunting phase, scammers identify potential victims online, often through dating apps or social media platforms. They then move into the raising stage, where they build trust with their targets by posing as romantic partners or friends. Finally, in the killing stage, they manipulate victims into investing large sums of money in fraudulent schemes.

These scams differ from traditional romance scams in several key ways. While both involve emotional manipulation, pig butchering scams focus more on the victim's desire to make money with the scammer. Traditional romance scams can last for years, but pig butchering scams often unfold over a shorter period, typically a few months. Scammers present themselves as financially successful individuals with access to lucrative investment opportunities, encouraging victims to make small initial investments before pushing them toward larger commitments.

Real-Life Examples of Pig Butchering Scams

One notable case involved a woman from Connecticut named Jacqueline Crenshaw, who met a man on an online dating site. He posed as a widower with two children and engaged her in frequent phone conversations. Within two months, the conversation shifted to cryptocurrency investments. Crenshaw sent $40,000 initially and received screenshots showing supposed profits. Encouraged by these fake returns, she eventually lost nearly $1 million.

Another example is the case of Shan Hanes, a banker from Kansas who embezzled $47 million from his bank to cover losses after falling victim to a pig butchering scam. Hanes was later sentenced to over 24 years in prison, underscoring the severe consequences of these crimes.

Organized Crime and International Expansion

Pig butchering scams are often orchestrated by highly organized criminal groups. These groups operate with structured hierarchies, providing training to new recruits and employing models to interact with victims. As governments crack down on fraud domestically, many of these groups have relocated their operations to Southeast Asian countries such as Cambodia, Laos, and Myanmar.

Northern regions of Myanmar, including Kokang and Wa State, have become hotspots for organized fraud. The areas share cultural similarities with China, and Chinese is widely spoken, making it easier for criminal groups to operate. Additionally, corruption, poor governance, and instability in border regions have created an environment conducive to illegal activities.

The collapse of the online gambling industry in Southeast Asia after the pandemic has also driven crime groups to seek new sources of revenue. In some parts of the region, organized fraud has become a major economic driver, with estimated profits from online scams accounting for up to 40% of the combined GDP of Cambodia, Laos, and Myanmar.

The Broader Implications

Beyond financial harm, pig butchering scams are closely linked to violent crime, human trafficking, and other forms of organized criminal activity. These scams pose a significant threat to regional and global security. As criminal groups continue to expand their operations, it is essential for governments and international organizations to collaborate on strategies to combat this growing menace.

Efforts to address fraud have included legislative measures such as China’s Anti-Telecom Fraud Law, enacted in 2022, and the development of the National Anti-Fraud Center App, which allows users to report scams and receive real-time alerts. Since 2024, these initiatives have intercepted billions of scam calls and text messages, demonstrating the importance of proactive measures in the fight against fraud.