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A growing number of New Zealanders, particularly older adults, are being targeted by a sophisticated online scam known as “pig butchering”.
The name comes from the idea of fattening a pig before slaughter. In these scams, the victim (the pig) is slowly “fattened up” with attention, affection and false promises until the scammer convinces them to invest in a fake opportunity, usually involving cryptocurrency or foreign exchange.
Once the victim has poured in their money, the scammer vanishes with their money.
These scams aren’t usually the work of one person, instead, they are run by organised criminal networks, operating out of compounds in Southeast Asia, including countries like Myanmar, Cambodia, and Laos.
They force or recruit workers, sometimes even trafficking people, into sending messages to targets around the world. The scammers are trained to follow detailed scripts and are often supervised by managers who monitor their conversations.
It is a worsening global problem. The Australian Securities and Investment Commissions says in its latest security report that it has removed more than 10,000 investment scam websites and advertisers since July 2023 while Netsafe estimates New Zealanders have lost an estimated $2.3 billion to scams in 2024.
The scams typically follow a formula – a text or message out of the blue saying something like: “Hi, is this Susan?” When you reply, they say it’s a wrong number, but they’re friendly, and keep chatting.
The scammer might pretend to be lonely, wealthy, or looking for a friend. Over time, sometimes weeks or even months, they gain your trust. They might chat daily, send photos, ask about your day, or offer kind words of support. Once they feel you trust them, they bring up an investment opportunity, usually in cryptocurrency or forex trading.
They’ll say things like, “It’s really safe, I’ve made a fortune.” If you raise doubts, they’ll quickly reassure you. “Let me show you how. I can guide you.”
You’re invited to sign up to an online platform that looks professional. Your first deposit grows. You might even be allowed to withdraw a small amount – just enough to make it feel real. Then they pressure you to invest more: “This is a once-in-a-lifetime chance” or “you could double your money this week.”
But once you have done that, suddenly, you can’t get your money out. The website stops working. The scammer says you need to pay a fee or tax to unlock your funds. Then, they disappear.
These scams are highly sophisticated and emotionally manipulative. The scammers are patient and convincing and they’ll play the long game to get your trust before striking.
Five red flags to watch for:
• Unexpected contact from a stranger on social media or messaging apps.
• “Wrong number” messages that turn into long chats.
• Promises of huge profits from investments you don’t understand.
• Pressure to keep things secret or act fast.
• Excuses for why you can’t get your money out unless you pay more.
If you suspect an investment scam, it’s crucial to act fast. Stop all contact. Don’t send more money and alert your bank immediately. Keep all the messages and screenshots of correspondence, and secure all your devices by resetting passwords and using two-factor authentication. Get your devices scanned for malware. Talk to someone you trust. A friend, family member, or community advisor.
Report it. Contact Netsafe at www.netsafe.org.nz or call 0508 NETSAFE (0508 638 723).
You can also contact CERT NZ at www.cert.govt.nz for help with online scams.
If you’ve been caught in a scam, you’re not alone and you’re not to blame. These scammers are experts at manipulating people. The best thing you can do is tell someone and report it. Your story might help save someone else.
