Dutch Police Intercept Global ‘Pig Butchering’ Scam Involved in Stealing $162M from Victims

Rotterdam’s police have played a crucial role in dismantling an extensive “pig butchering” scam, a fraud operation preying on victims via dating and social media platforms before siphoning off their savings.

The international crackdown, termed Operation Spincaster, has exposed 186 victims in the Netherlands alone, with additional targets identified in the US, UK, Australia, Canada, and Spain, according to DutchNews.

Per the report, law enforcement agencies teamed up with Chainalysis, a blockchain data analytics firm, and 17 cryptocurrency exchanges to amass evidence, freeze accounts, confiscate assets, and trace over $162 million (€149 million) swindled by the fraudsters.

Among the thwarted cases was a Dutch investor who was on the brink of losing €65,000 from his cryptocurrency account, as reported by the Telegraaf.

Pig Butchering Scams Prey on Romance

The “pig butchering” scam, also referred to as approval phishing, involves convincing victims to authorize the transfer of substantial funds, purportedly for cryptocurrency investments.

Originating in China, this scam proliferated globally during the COVID-19 pandemic, with criminal syndicates employing human trafficking victims in call centers to execute the fraud, according to investigative website ProPublica.

Fraudsters typically engage with their targets on social media or dating sites, cultivating a relationship of trust over several months before introducing an investment scheme.

They entice victims to transfer a small sum, such as €500, into a cryptocurrency account, then return a larger amount to showcase potential profits.

However, during the initial transfer, victims are asked to sign an “approval document” that permits the fraudsters to withdraw funds from their crypto accounts, ultimately draining their savings.

This week on the Public Key Podcast, host @IanAndrewsDC sits down with Detective Matthew Hogan of the Connecticut State Police to talk about the rise of Pig Butchering and other crypto-related scams.

Tune in now: https://t.co/hdmfNv5mIp pic.twitter.com/1nyiPwpmDP

— Chainalysis (@chainalysis) September 5, 2023

“If a victim then deposits the rest of their savings into the crypto account, the approval document can be very damaging. They will have a hard time seeing that money ever again,” Jesse Brobbel of Rotterdam police said.

Ruben van Wall, from the city’s cybercrime team, highlighted that the victims are often young individuals lured by the prospects of romance or quick riches.

“Criminals exploit the fear of losing the money invested to get victims to invest even more money quickly,” he noted.

“We see damages running into the millions, with people taking out extra mortgages and loans. The victims often end up losing everything they have.”

Crypto Romance Scams Become Prevalent

Crypto romance scams have also been plaguing US citizens, resulting in significant financial losses.

Just recently, Shreya Datta, a 37-year-old tech professional from Philadelphia, fell victim to a cryptocurrency romance scam that left her financially ruined with losses mounting to $450,000.

As reported, Erin West, Deputy District Attorney in Santa Clara, California, has revealed that she receives an average of 5-6 emails daily from individuals who have fallen prey to pig butchering.

“We are receiving 5-6 emails a day from people who are victims of pig butchering. The most recent victim lost $5 million dollars and that’s not even the biggest amount one victim has lost to this scam.”

Compounding the issue, the stolen funds are funneled overseas to transnational criminal organizations in Myanmar and Cambodia, using trafficked individuals as virtual slaves to carry out the pig butchering scams.