Pig butchering // The $4 Bn Asian Scam Factory

Pig Butchering

Have you ever gotten a random text from someone you don’t know? Maybe an attractive stranger asking, “Hey, is this John?” It seems harmless, right?

Before you know it, you’re chatting with someone friendly, maybe even a little flirty. You feel like you can trust them.

But then the conversation shifts. They mention an amazing investment opportunity—crypto, stocks, big profits, fast. Too good to be true, right?

Well, these messages aren’t random at all. It’s the first move in a carefully crafted scam, designed to lure you into a fake “investment” scheme, only for your money to disappear into the hands of criminals.

This is what’s happening in scam factories across Southeast Asia, targeting people worldwide.

This is Pig Butchering.

The Pig That Got Too Greedy

In Elkhart, Kansas, a small, close-knit town, trust is everything. And no one held more trust than Shan Hanes, the 53-year-old CEO of Heartland Tri-State Bank.

But in 2023, that trust was shattered.

It all began with a message. A friendly chat from a stranger, offering Hanes a golden opportunity to get rich through cryptocurrency. At first, he invested his own money, chasing the dream of quick profits. But when his funds ran dry, desperation took over.

That’s when he crossed the line. Over the next two months, he embezzled $47 million from his own bank, draining the life savings of families, retirees, and local businesses in his community—all to feed a scam he believed would eventually pay off.

One of his neighbors, Brian Mitchell, even tried to warn him: “You’re in a scam. Walk away.” But Hanes wouldn’t listen. He kept sending money, convinced that the next wire transfer would finally unlock the fortune he was promised.

It wasn’t until July 2023, after 11 wire transfers, that Hanes was caught. By then, Heartland Tri-State Bank had collapsed, leaving the FDIC to cover a $47 million loss. Local investors lost $9 million, and everyday people—his own community—lost up to 80% of their savings.

Even as he was arrested, Hanes refused to believe he’d been scammed. He insisted, “If I just had two more months, I could get the money back.”

In the end, Hanes was sentenced to 24 years in prison, but the damage was done. The victims of this Pig Butchering scam may never fully recover.

Fattened with Lies

“Pig Butchering” might sound like a strange term, but it’s the perfect name for one of the world’s most devastating scams.

Here’s how it works:

It all starts with a fake profile on social media or dating apps like Facebook, WhatsApp, Tinder, or Bumble. Scammers use stolen, glamorous photos to create a persona—someone who seems successful, friendly, and trustworthy.

Then comes the message. It’s innocent at first, maybe even flirty, but over the next few weeks—or sometimes months—the scammer works hard to build trust. They’ll make you feel like you’re forming a real connection, slowly “fattening up” their target by playing the long game.

But it’s all part of the plan.

Once they’ve gained your trust, they drop the bait: an exciting “investment opportunity.” It’s usually something like cryptocurrency or stocks, with the promise of huge, fast returns.

To make it feel even more real, they might let you withdraw a small amount at first, just to get you hooked. You’ll see fake market data showing your investment growing. Everything seems perfect.

But behind the scenes, the platform is a complete fake. Every dollar you send goes directly into the scammer’s pocket. They’ll push you to invest more, sometimes urging you to take out loans or drain your savings.

But when you finally try to cash out? That’s when the truth hits. The website disappears. The scammer stops replying. And your money? Gone, with no way to get it back.

From a Little Farm to Factory

Pig Butchering” scams started in China around 2016 and soon spread across Southeast Asia. The scam quickly took hold in countries like Myanmar, Cambodia, and Laos, where Chinese crime groups exploit the region’s instability and weak laws.

These operations exploded during the COVID-19 pandemic. As tourism shut down and casinos were abandoned, criminal syndicates saw an opportunity to replace their lost gambling revenue by scamming people worldwide—making billions in the process.

But behind these scams is a darker reality—many of the scammers are victims themselves. Trafficked from across Southeast Asia with promises of high-paying jobs, they end up trapped in scam compounds, forced to deceive others under brutal conditions.

Take Rakesh from India. He thought he was starting a high-paying IT job in Myanmar, but instead, he was trafficked into a scam compound. Forced to pose as ‘Klara Semonov,’ a fake Russian investor, he spent nearly a year tricking people into crypto schemes—all while living under constant threats of violence and death.

“They were treating us like slaves,” Rakesh told CNN after his release in 2023.

These operations thrive in areas where corruption runs deep. In Myanmar, the military and armed groups not only turn a blind eye to these crimes—they proactively protect the scam compounds, making it nearly impossible to shut them down.

At the top of the chain are powerful crime syndicates, like the notorious 14k Triad, led by figures such as Broken Tooth. These organizations run multibillion-dollar scams, with networks reaching from Southeast Asia to China and beyond.

The Price of a Pig’s Life

The financial impact of Pig Butchering is staggering. In 2023 alone, nearly $4 billion was stolen in the U.S., and globally, the total may exceed $75 billion. Law enforcement even calls it a “mass transfer of wealth,” as middle-class individuals worldwide lose their life savings.

But the true scope may be even larger because many victims never come forward. They feel betrayed, ashamed, and too embarrassed to report their losses. These scams don’t just take money—they ruin lives.

Victims like Carina, who believed she’d found love with a Dutch businessman, invested everything she had—$150,000—into a fake crypto platform. By the time she realized the truth, she was not only bankrupt but emotionally wrecked. It will take her at least a decade to repay her debts.

But the impact doesn’t stop with the victims. Many of the scammers themselves are victims of human trafficking. Over 200,000 people from more than 60 countries are trapped in Southeast Asian scam factories, forced to run these frauds under brutal conditions. They work up to 17 hours a day and face beatings, starvation, or even death if they refuse.

The emotional and psychological strain on both sides is devastating.

Outlook

Pig Butchering scams aren’t just a few isolated incidents—they’ve grown into a global crisis. And with AI technology on the rise, these scams are becoming even more advanced.

Scammers can now create highly convincing fake profiles, write realistic messages in multiple languages, and even manipulate live video calls with deepfake technology. Some are even using Elon Musk’s Starlink satellite internet to power their operations from remote locations.

What’s worse, these scams are spreading far beyond Southeast Asia. Since 2021, Dubai has become a major hub for these operations, and the scams are now reaching into the Middle East, Eastern Europe, Latin America, and West Africa.

But there is hope. People like Erin West, a prosecutor from California, are on the frontlines of this fight. She’s made it her mission to help victims and bring traffickers to justice. With growing law enforcement efforts around the world, there’s a push to dismantle these operations.

So, how can you protect yourself?

1. Be sceptical—don’t trust unsolicited investment offers, especially from someone you just met online.

2. Trust your instincts—if something feels off or too good to be true, take a step back.

3. Spread awareness—the more people know, the harder it is for scammers to succeed.

Stay safe online!