At CEL Solicitors, we have seen first-hand the damage that financial scams cause. One of the most calculated and emotionally harmful is the pig butchering scam. It involves long-term manipulation, cryptocurrency fraud, and often, romance.
Despite common assumptions, these scams do not just affect older adults. We regularly support clients of all ages; many of whom believed they were investing in legitimate opportunities before discovering they had been deceived.
In 2024, UK Finance reported £1.17 billion in fraud losses. While the total value remained steady, the number of victims increased by 12 per cent, reaching a record 3.3 million cases. This rise reflects a change in tactics, with scammers targeting more people and causing smaller, yet still devastating, losses.
Cryptocurrency has opened new doors for financial growth, but also for fraud. Pig butchering scams are among the most harmful, combining trust-building with digital deception.
What Is a Pig Butchering Scam?
Also known by the Chinese term Sha Zhu Pan, pig butchering scams are named after the idea of “fattening the pig before slaughtering it”. In this context, the scammer builds trust over time, encouraging the victim to invest increasing amounts of money before disappearing.
The fraud often begins on:
- Dating apps
- Social media platforms
- Messaging services such as WhatsApp
Once a relationship is formed, the scammer gradually introduces the idea of cryptocurrency investment. They present themselves as experienced investors and offer to help the victim grow their money, often with fabricated proof of success.
Who Is Most at Risk?
While anyone can be affected, some groups are particularly vulnerable:
- People new to investing
- Those looking for quick financial gains
- Individuals dealing with emotional hardship, such as bereavement or divorce
Action Fraud reported 25,843 investment fraud cases in 2024, with total losses of £649 million. Cryptocurrency was the most common asset involved, featuring in 66 per cent of reports, which marks a 16 per cent increase from the previous year.
Victims are often between 30 and 49 years old, a group actively seeking financial opportunities and sometimes less cautious about digital investments.
“Scammers often target people going through major life changes, when they are most vulnerable.”
— Paul Hampson, CEO, CEL Solicitors
Expert Insight: Paul Hampson, CEO of CEL Solicitors
“Pig butchering scams are on the rise, representing 66 per cent of the scams we deal with. Scammers’ typical hunting ground is online dating and social media platforms. They target a more mature audience, seizing on any vulnerabilities such as divorce, bereavement, or financial concerns to build a rapport. Our clients have lost an average of £32,000, with some cases running into hundreds of thousands of pounds. This type of loss has a profound effect on the victim and more needs to be done to tackle the problem.”
“We have seen improvements from financial institutions, with better systems to prevent and detect fraud. It is also encouraging that all police forces in the UK now have dedicated cybercrime teams. However, while it is possible to trace money through the financial system and cryptocurrency using specialist software, there are jurisdictional challenges to recovery. Many victims have lost all their life savings.”
“Due to the offshore nature of these criminal organisations, the true perpetrators are rarely brought to justice. Law enforcement worldwide must prioritise fraud. Until then, public education is the most effective form of protection.”
Why Do Scammers Use Cryptocurrency?
Pig butchering scammers often insist on crypto payments. Here is why:
1. Anonymity and Irreversible Payments
Unlike traditional bank payments, cryptocurrency transactions cannot be reversed. Once confirmed on the blockchain, the funds are gone. Banks and credit cards often offer fraud protection, allowing victims to recover lost funds. With crypto, victims have little to no recourse.
2. Lack of Regulatory Oversight
Cryptocurrency exchanges often operate outside the scope of strict financial regulations such as anti-money laundering (AML) or know your customer (KYC) protocols. In contrast, banks are required to flag or investigate suspicious activity. This lack of oversight allows scammers to operate more freely.
3. Global Accessibility
Cryptocurrency enables instant international transactions without the need for banks or currency conversions. For scammers working across borders, this provides a quick and convenient way to receive funds without triggering fraud detection systems. This lack of oversight has made crypto a prime tool for fraudsters, as highlighted by the Financial Conduct Authority (FCA), which emphasises the need for stronger frameworks to combat financial crime in the digital age.
4. Harder to Trace
While every crypto transaction is recorded on the blockchain, tracking the real identity behind a wallet is extremely difficult. Fraudsters use multiple wallets, mixing services, and crypto tumblers to hide their tracks and move funds anonymously.
5. Easier to Launder Money
With traditional banking, authorities can freeze or recover funds linked to fraudulent activity. Cryptocurrency makes this much harder. Scammers often convert stolen funds into privacy coins such as Monero or use decentralised exchanges that lack verification protocols.
Excuses Scammers Use to Promote Crypto
Scammers use common phrases to make crypto seem like a normal, secure choice. Look out for these red flags:
“Crypto is faster – no banking delays!”
Scammers often claim that cryptocurrency offers instant transfers, unlike traditional bank payments, which can take hours or even days. They convince victims that using crypto means they won’t miss out on limited-time investment opportunities.
The Financial Conduct Authority (FCA) warns that fraudsters exploit the speed of cryptocurrency transactions to pressure people into quick decisions before they’ve had time to properly understand the risks.
“Banks charge high fees and block big payments”
To steer victims away from traditional banking, which offers fraud protection, scammers suggest that banks charge excessive fees or might flag their payments as suspicious.
They present crypto as a simpler, cheaper alternative. Action Fraud has warned that criminals often promote investment schemes with promises of high returns, using the idea of avoiding banking scrutiny to lure people in.
“Crypto is more secure and private”
Scammers play on the myth that cryptocurrency is safer than banks. They claim that banks might freeze or seize funds, but crypto gives full control to the user.
In reality, crypto payments are largely untraceable and offer no route for recovery once sent. Research by the University of Queensland found that people from all walks of life fall for these scams, in part due to false beliefs about crypto security and privacy.
“This investment platform only takes crypto”
Some scam operations create fake platforms that only accept cryptocurrency. This can make the scam seem more legitimate — if the entire site is crypto-based, victims may see it as a normal part of the process rather than a red flag.
The Guardian reported on a sophisticated scam network that used fake celebrity endorsements to draw people in. These platforms often appear polished and professional but are set up solely to steal crypto.
“I can’t use banks because of government restrictions”
Scammers may pretend to live in politically unstable countries where banking is unreliable or unavailable. They claim this is why they need crypto payments instead of traditional bank transfers.
This excuse helps them sound more believable and can play on people’s sense of empathy, making them more likely to agree.
“You’ll get better bonuses or returns with crypto”
Many scam platforms promise extra incentives for paying in cryptocurrency. Victims are told they’ll receive a higher return or a discount on fees if they choose crypto over traditional payment methods.
This tactic is designed to rush people into transferring funds before they’ve had a chance to think things through.
“Crypto is the future – banks are dying”
Scammers often push the idea that banks are outdated and that crypto is the way forward. They’ll say that smart investors are moving away from traditional finance and that using crypto proves you’re ahead of the curve.
This message plays into fear of missing out and encourages people to follow the crowd — without stopping to question the risks.
“While tracing stolen crypto is sometimes possible, recovery is difficult and expensive, especially across borders.”
— Paul Hampson
How to Protect Yourself
To stay safe from pig butchering scams:
- Be cautious of unsolicited investment advice or romantic interest from strangers online
- Do not trust anyone who promises guaranteed returns
- Research any platform or opportunity independently
- Never send money to someone you have not met in person
- Avoid sharing personal or financial information online
- Use only trusted and regulated crypto exchanges
- Report suspicious behaviour to Action Fraud or the police
Have You Been Targeted by a Pig Butchering Scam?
Pig butchering scams are designed to feel personal and trustworthy, which makes them especially cruel. If you suspect that you or someone you know has been targeted, it is important to act quickly and seek professional support.
Read more about pig butchering scams and real-world examples.
We work on a no-win, no-fee basis, so there is no financial risk to you. To find out how we can help, visit our Fraud and Scam Claims page, call us on 0330 162 6037, or complete our quick online form for a free consultation.
