News Post

By Keith Jackson, Riley & Jackson, P.C.

The confluence of seemingly disparate events in 2020 marked the onset of a new era in international cybercrime, particularly involving cryptocurrency. Beginning in 2018, the Chinese Communist Party (CCP) launched a crackdown on illegal casinos and gaming operations.[1]^,[2] This initiative focused on activities within China’s borders as well as cross-border illicit betting.[3]^,[4]

Under increasing governmental scrutiny, criminal organizations that managed illegal casinos in China relocated their operations to nearby countries with more lenient law enforcement, such as Myanmar and Laos. However, the onset of the COVID-19 pandemic in 2020 forced these illegal casinos to temporarily cease operations. These syndicates repurposed their facilities into hubs for international cryptocurrency fraud. The lucrative nature of these scam operations led the organizations to abandon their casino ventures in favor of expanding their fraudulent schemes.[5]

Cryptocurrency theft losses have increased exponentially each year since 2020. The FBI reports 2023 cryptocurrency theft losses of $5.6 billion.[6] Notably, 71% of crypto theft complaints in 2023 were linked to investment fraud. A smaller yet significant proportion of crypto scams involved romance, online employment, impersonation, and variations of traditional fraud and confidence scams.[7]

Cryptocurrency theft can lead to devastating financial repercussions for the victims. To begin, this article aims to explain the basics of how cryptocurrency transactions work, which is critical for understanding the mechanics behind these scams. Then, an outline of various types of cryptocurrency scams, with a specific focus on pig butchering, the most prevalent scam, is discussed. The article also addresses the tragic connection between human trafficking and cryptocurrency scams. Finally, the article identifies the criminal organizations responsible for many of these activities, highlights warning signs that can help community members avoid becoming targets of these schemes, and offers insights into how attorneys can effectively assist those who have been victimized by these scams.

CRYPTOCURRENCY – THE BASICS

Cryptocurrency, commonly referred to as crypto, represents a digital asset that lacks physical form. Crypto serves as a digital medium of exchange, designed for creation and storage within blockchain technology. Crypto wallets are utilized to securely hold the assets of the wallet owner, while crypto exchanges function as platforms that host these wallets and enable the buying and selling of crypto.

Crypto wallets resemble traditional individual bank or investment accounts, whereas crypto exchanges function similarly to stock and commodities exchanges. However, crypto transactions operate and are recorded in a manner distinct from traditional currency transactions.

Crypto transactions take place entirely within the digital realm. The transactions occur in a decentralized, peer-to-peer framework. This structure eliminates all intermediaries, such as banks that typically process ACH transfers.

To facilitate the transfer of funds from a crypto wallet, only two elements are required: the wallet’s private key, which functions like a password or personal identification number, and a stable Internet connection. When a wallet owner initiates a crypto transaction, a network of nodes utilizes sophisticated algorithms to authenticate both the transaction and the credentials of the initiator. The details of one side of the transaction are then merged with the transaction’s counterpart (such as payment and receipt) to form a new block of data. This new data block is subsequently integrated into the existing chain of the network. Due to its structure, wherein data is encapsulated in blocks linked together on a chain, the database is commonly referred to as a blockchain.

Every crypto transaction is recorded using blockchain technology, which establishes a permanent and immutable ledger of transactions. Modifications or deletions of the ledger require consensus from the entire network, a feat that is virtually impossible in a network of the magnitude of a cryptocurrency exchange. Consequently, unlike cash transactions, crypto transactions can be monitored in real time and analyzed historically. This capability enables attorneys retained by victims of scams to utilize blockchain analysis and other forensic tools to trace the flow of cryptocurrency across the blockchain.

CRYPTOCURRENCY THEFT – ONE GOAL, MANY FORMS

Criminal actors connected to the Internet from anywhere in the world can exploit the characteristics of crypto transactions. This internet connection enables the criminals to conduct large-scale, near-instantaneous cross-border transactions without the oversight of traditional financial intermediaries, which typically have anti-money laundering protocols and adhere to Know Your Customer regulations. This article primarily addresses pig butchering, the most prevalent form of cryptocurrency theft. But there are several other common variants of crypto theft, including:

• IMPERSONATION SCAMS: Scammers impersonate either technical support representatives or government officials. Those posing as tech support often convince victims that their computers are compromised by a virus, while impersonators of government officials may claim that victims owe taxes or fees. In each scenario, the scammers demand payment in cryptocurrency.

• PONZI SCHEMES: The crypto version of this scam operates similarly to its traditional counterpart. Scammers make enticing but false promises of high returns, using crypto from new investors to pay earlier investors. The scheme is destined to collapse when new investments dwindle.

• PUMP AND DUMP: Criminals artificially boost the price of a specific cryptocurrency through misleading promotions. Once the price reaches a peak, they sell their holdings, causing the crypto’s value to plummet.

• RUG PULLS: Rug pulls are frequently mentioned alongside pump and dump schemes due to their similarities. A rug pull occurs when developers establish a new crypto or decentralized finance project, build investor confidence, and then suddenly withdraw all funds, leaving the project abandoned. Investors are left with zero-value tokens. A key distinction between rug pulls and pump and dumps is that rug pulls eliminate all liquidity from a project, rendering the cryptocurrency worthless.

With any of these crypto scams, victims have access to the same potential recovery options available to pig butchering victims, as discussed hereafter.

PIG BUTCHERING

The phrase “pig butchering” in the cryptocurrency context derives from the Chinese expression “sha zhu pan”, which can be interpreted as “killing pig plate.” The targeted individuals are referred to as “pigs.” Scammers target their victims, “fatten” them over time by gradually persuading them to transfer increasing amounts of cryptocurrency, and ultimately “butcher” them by stealing as much crypto as possible.

The Scam Process

Pig butchering scams employ long-term, manipulative strategies to exploit victims. The scammers trick victims into “investing” cryptocurrency through fraudulent investment platforms or similar deceitful interfaces. The scams typically unfold in a similar manner.

1. Initial Contact

   Scammers contact targets through social media, dating apps, or direct messaging platforms. On social media, the scammers may comment on a post or inquire whether they have previously interacted with the target. On dating sites, unsolicited outreach is more common, making initial communication harder to recognize as a scam (refer to the Warning Signs section below). When scammers reach out via text messaging, “accidental texts” are often used, whereby the scammers pretend to have mistakenly contacted the target in the belief they were texting someone else.

2. Establishing Trust

The initial contact is designed to begin an online conversation. Scammers often quickly suggest that the conversation be moved to a more secure, private environment, such as WhatsApp. The scammers then work to cultivate a personal relationship with their targets, manipulating the targets into believing the scammers are romantic interests, trusted friends, or investment professionals.

3. Introduction to Cryptocurrency Investments/Earnings Opportunities

After the scammers establish the targets’ trust, the concept of investing in or with cryptocurrency is introduced, or opportunities to earn easy money by doing online work from home are suggested. The scammers may encourage the targets to start with small investments, showcasing fake online portfolios or using images of luxury items such as mansions or yachts to imply their own financial prosperity.

Recently, there has been an uptick in “contract trading group” investment scams. Scammers use chatbots and other techniques to convince the targets that they are part of a select group of investors. The targets receive daily investment tips, or “signals”, instructing them on how to invest their crypto.

4. Fake Platforms and Portfolios

The scammers never ask the targets to send cryptocurrency directly to the scammers. Rather, the scammers direct their targets to fraudulent cryptocurrency exchanges or platforms that appear legitimate, featuring polished user interfaces and simulated trading data, to convince the targets that the targets are controlling their invested cryptocurrency.

5. The “Fattening”

Early in the process, scammers often suggest that the targets withdraw a small amount of the cryptocurrency they have “earned.” This phase of the scam is intricately designed to generate excitement and instill confidence in the targets. The objectives are to (a) convince targets that their investments are legitimate, and (b) cultivate a “fear of missing out” mentality, increasing the likelihood of larger investments. The scammers then encourage the targets to invest increasing amounts of cryptocurrency as the scam matures, leading the targets to believe they are on the verge of substantial profits.

6. The “Butchering” (a/k/a The Exit)

Once the targets have transferred significant funds, scammers create obstacles that prevent the targets from withdrawing their funds. If the scammers determine that the targets can still be manipulated, the scammers may present various justifications to compel further investment. For instance:

• • The scammers might claim that the targets’ accounts have yielded such high returns that the IRS requires an advance tax payment. They will suggest that targets can access their profits after they transfer additional cryptocurrency for taxes.
  • The scammers may cite technical issues or additional fees, or commissions that the targets must pay before their accounts can be unfrozen.

This phase of the scam preys upon the sunken loss fallacy. Many targets, even while becoming suspicious about the legitimacy of the operation, may minimize their concerns, believing they will be rich if they just “invest” a little more. This is often emotionally and intellectually easier than realizing they have been victimized.

Inevitably, the fraudulent platform will either vanish or the scammers will block the targets from further communication. The targets then realize they have been scammed, but their cryptocurrency is gone.

While targets believe they are engaging in investment activities or interacting with work from home platforms, they are unwittingly transferring their cryptocurrency directly into crypto wallets controlled by the scammers. These scammers, collaborating with crypto mules and money launderers, then manipulate the targets’ cryptocurrency through various laundering techniques on the blockchain. Targets often struggle to reconcile their beliefs regarding their crypto with the reality of what happened, but the fact remains that no legitimate investment or portfolio ever existed. From the outset, the targets faced a predestined loss,  it was only a question of how much the targets would lose.

HOW STOLEN CRYPTOCURRENCY IS LAUNDERED

Deceiving targets into transferring crypto into a wallet controlled by the scammers, i.e., a “scam wallet”, is only the first step in the crypto theft process. The scammers then move the assets through various crypto wallets along a blockchain such as Tether or Tron to launder or “clean” the crypto, with the goal of eventually converting the crypto to fiat currency such as US dollars or Chinese Yen.

Money laundering traditionally involves three stages – placement, layering, and integration. Placement is the process of moving the funds away from a direct association with the crime. With cryptocurrency, placement is the movement of crypto out of the scam wallets and into other wallets not directly associated with the theft. Layering is the movement of funds in a complex pattern to disguise the trail of funds and frustrate tracing attempts. With cryptocurrency, layering involves numerous transactions along the blockchain, often perpetrated by crypto mules, to disguise where the funds went. Integration is the process of making the stolen funds available to the criminals, in this case the scammers, who stole the funds after the funds have been “washed”, i.e., off-ramping.[8] With cryptocurrency, integration involves depositing stolen funds into wallets holding legitimate crypto so that retrieving the stolen funds requires distinguishing between stolen and legitimate crypto.

As part of the crypto laundering process, cyber scammers and criminals deploy various techniques, such as:

• Smurfing – splitting large sums into smaller amounts that are transferred through multiple transactions.
• Exchange hopping – using multiple crypto exchanges to transfer funds across different platforms.
• Mixing – blending crypto from multiple sources to obscure the transaction history. Digital banks that offer banking-as-a-service (BaaS) in jurisdictions deficient in their anti-money laundering systems afford criminals the opportunity to “cloak” the stolen crypto by mixing it with legitimate funds.

The financial technology (FinTech) industry is subject to the risk of criminal fraud as there is no comprehensive regulatory framework governing FinTech banking activities. FinTech and BaaS can offer legitimate business services, but they must employ appropriate know your customer (KYC) and anti-money laundering (AML) compliance solutions to help prevent criminals from using their platforms to launder stolen crypto. Unfortunately, robust compliance solutions in these industries are currently the exception rather than the norm.

THE EMOTIONAL TRAUMA OF CYBER THEFT

Cyber theft scams cause obvious financial harm to the victims. Many victims chase the allure of high returns well beyond the point of losing discretionary funds earmarked for investment purposes. Some victims have depleted entire retirement accounts, education funds, and life savings. One recent case involved a victim who was left with only $574 after falling for a scam.

A recent research study explored the financial and psychological impacts on pig butchering victims.[9] The findings of Burton et al. indicate that the financial impact of pig butchering scams “can have a ripple effect, impacting victims’ ability to meet daily expenses, pay off debts, and maintain their standard of living.”[10] But as the authors observed in their study, the financial harm caused by these scams represents not only money but also the loss of financial security and peace of mind. Further compounding this emotional aspect of financial loss, “[t]he scammers’ ability to establish seemingly genuine connections [with the victims] makes the eventual financial betrayal profoundly impactful, causing severe emotional distress.”[11]

The emotional harm caused by pig butchering scams has been linked to a sustained decline in both the emotional and physical well-being of the victims. The psychological impact can lead to heightened feelings of vulnerability, diminished self-worth, declining self-esteem, and social withdrawal, all of which pose significant obstacles to the victims’ efforts to rebuild their lives. Additionally, this psychological harm may also contribute to various physiological issues, including hypertension and cardiovascular complications.[12]

PIG BUTCHERING: THE SECOND LAYER OF VICTIMS 

The harm from pig butchering does not end with the targets of the scams. Many of the scammers are victims of human trafficking. Those orchestrating the scams were often coerced into working in scam centers under severe and inhumane conditions.

Recruitment Through Deception

Human trafficking victims are lured with promises of legitimate jobs, such as roles in customer service or information technology, often in countries like Cambodia, Laos, or Myanmar. Traffickers specifically target vulnerable demographics, including unemployed individuals, migrants, and those facing financial hardships, particularly in Southeast Asia, China, and northern Africa.

Coercion and Control

The victims are unaware of the trafficking until they arrive at the scam compounds where their passports and phones are confiscated.[13]The victims are subjected to physical abuse, intimidation, and psychological manipulation to enforce compliance.

These trafficked workers must fulfill high financial quotas by deceiving targets online. Failure to meet their quotas results in severe punishment, including beatings or the risk of being sold to other, potentially more brutal, scam syndicates.

Trafficked individuals are confined to compounds, often surrounded by armed guards. They endure long hours of up to 18 hours each day, often with minimal food or rest. Escape attempts are met with brutal consequences, including beatings, further trafficking, or death.

PIG BUTCHERING: THE CRIMINAL MASTERMINDS BEHIND THE SCAMS

Pig butchering scams originate in regions ranging from northern Africa through southeast Asia and into the Korean peninsula, but they are primarily orchestrated by Chinese and Taiwanese international crime syndicates. Below, a few of the most notorious organizations and their key figures

Chinese 14K Triad

 Established in 1945 by loyalists of the Kuomintang, the 14K Triad emerged as an anti-communist organization in the aftermath of the Chinese Civil War. Initially founded in Guangzhou, China, the Triad swiftly expanded its operations to Hong Kong, where it originally set up its headquarters. The organization is involved in a diverse array of illicit activities, including drug trafficking, extortion, money laundering, human trafficking, illegal gambling, and arms smuggling.

Wan Kuok-Koi

Wan Kuok-Koi, also known as “Broken Tooth”, is a Chinese mafia boss and the former leader of the 14K Triad. Wan received his “Broken Tooth” nickname after a motorcycle crash in his youth.

Wan established the World Hongmen History and Culture Association in Cambodia in 2018. The Cambodian branch of this association appropriated the name of a historic Chinese fraternal group established in the mid-1600s, also known globally as the Heaven and Earth Society. Wan has utilized this organization to recruit Cambodian business figures and politicians into his criminal activities.

Wan also heads the Dongmei Group based in Hong Kong, which invests in the Saixigang Industrial Zone in Myanmar. This zone, along with Myanmar’s KK Park (pictured) and other associated facilities, is reported to host large-scale cyber fraud operations, as stated by the United Nations Office on Drugs and Crime.

Sun Yee On

Sun Yee On, alongside 14K, ranks among the largest and most influential triads in Hong Kong, with extensive operations extending throughout China and around the globe. Founded in 1919 by Heung Chin, the organization predates 14K and has evolved into a significant transnational organized crime syndicate.

In 2020, Sun Yee On shifted its focus to large-scale online cryptocurrency scams. Like 14K and the organizations associated with Wan Kuok-Koi, Sun Yee On is linked to online scams originating from Cambodia, Myanmar, and Laos.

Karen Border Guard Force

The Karen Border Guard Force (KBGF), a militia with a reputation for violence, exerts control over significant portions of Myanmar’s border regions adjacent to China, Laos, and Thailand. To enhance its legitimacy, the group rebranded itself as the Karen National Army (KNA). The KBGF/KNA operates primarily in Myanmar’s Karen State and is led by Colonel San Myint, also known as Saw Chit Thu.

Major Saw Tin Win serves as a direct subordinate to Saw Chit Thu within the KBGF/KNA. He has been implicated in the operation of various scam compounds near Myawaddy, including Shwe Kokko, the KK Park Project, and the Huanya Project. In October 2024, the European Union enacted sanctions against Major Tin Win.

Colonel Saw Chit Thu and Major Saw Tin Win are implicated in illegal scam operations alongside several other members of the KBGF/KNA. Notable participants include Chit Thu’s son, Major Saw Htoo Eh Moo, Moo’s brother, Major Saw Chit Chit, and Tin Win’s wife, Nan Myint Myint Win. Collectively, these individuals, along with Colonel Saw Min Min Oo, own various companies that play a critical role in the management and operation of scam compounds located in KK Park, Dongmei Park, and Jinxin Park.

Other international criminal gangs are entering the pig butchering space to grab shares of the billions these organizations are stealing each year.

PIG BUTCHERING WARNING SIGNS

The most effective way to combat online fraud is through education. Legal professionals have a vital role in safeguarding their communities from scams by providing educational resources and outreach initiatives. The more informed individual citizens are about the indicators of pig butchering scams, the more equipped they will be to identify and respond to potential deception when approached by perpetrators.

While pig butchering scams may manifest in various ways, there are five key warning signs that suggest an individual may be at risk of falling victim to such an attempt.

Warning Sign 1 – Unsolicited Contact

A social media post from an unknown individual or a text from an unknown number with a message indicating the sender of the text knows the recipient should immediately raise a red flag.

Social Media Contact

On social media platforms, the scammers often start with a comment under one of the target’s posts. The comment may express interest in the post content, or it may be a simple request to connect.

Two indicators should cause social media users to be cautious when seeing a comment on their social media site: (a) the poster is unknown to the targeted individual; and (b) the poster asks a question seeking a response. The easiest and best practice is to delete the comment and block the profile of the person who commented.

Messaging apps, Text, and Email

The formats of messaging apps, text, and e-mail may be different, but the scammers’ initial outreaches are often similar. The scammers will pretend to have met the targets, pretend to have a common friend, or simply offer a greeting. All initial contact formats have the same goal: get the targets to engage in conversation.

The following are examples of unsolicited texts from unknown numbers that may be related to potential crypto scams:

• • “Kathy, it was a pleasure meeting you at the charity event last week.”
  • “This is my number.”
  • “Hello”

Each of these outreaches is an attempt to engage in conversation. The best practice is to ignore initial contacts from unknown numbers or emails.

Dating Sites

Identifying a pig butchering outreach on a dating site can be difficult as the purpose of the platform is for strangers to meet. The scammers’ initial approach will be like any other message from a member of the same site.

Two signs may indicate the potential target is being set up by a scammer using a dating site. First, if someone who was recently a stranger suddenly begins love bombing, something is wrong. Second, if the new love interest quickly asks the site user to take the conversation to a secure, private messaging platform like WhatsApp, the site user’s scam antenna should go up. While moving conversations from dating sites to a private forum is not unusual, dating site users should be on guard if that request comes before they meet their potential new love interest in person.

Warning Sign 2 – Emotional Manipulation

Scammers are skilled at engaging their targets with personal, albeit fabricated, details of their lives and positioning the targets to share similar details about their own lives. Most people would never share personal details like marital struggles, the death of a loved one, financial hardship, etc., with someone they just met in person. But this is exactly what the scammers persuade pig butchering targets to do online.

Signs of attempted emotional manipulation include:

• The new contact asks about personal financial situations.
• The new contact starts encouraging the potential target to do more with their life.
• The new online friend begins to weaponize the target’s fears and insecurities, such as insisting that the target invest their money wisely if they have concerns about financially providing for their family.

Warning Sign 3 – The Pitch for Quick Crypto Profits

Pig butchering scammers always ask the targets to consider an “investment opportunity” or a work-from-home strategy that the scammers claim to be using to earn extra money. A virtual stranger offering quick or easy crypto profits is a sure sign of a scam.

Warning Sign 4 – Too Good to Be True Investment Promises

In addition to the “I have a crypto opportunity for you” warning sign, any promise of guaranteed or unusually high returns on the investment should be a warning to the target. Scammers often promise returns of up to 50% in the first few weeks or even days. Any statement that the investments are guaranteed or too good to pass up should be a warning to stay away from that contact and any potential investment

Warning Sign 5 – Limited Time Investment Opportunities

Scammers try to pressure targets with limited time or exclusive investment opportunities. With the limited time and exclusive opportunity pitches, the scammers are exploiting the fear of missing out and increasing the likelihood the targets will “invest” their crypto.

HOW ATTORNEYS CAN HELP

In collaboration with local law enforcement, attorneys can raise awareness about the increasing prevalence of cryptocurrency scams such as pig butchering. This includes informing community members about warning signs that they have been targeted, as well as offering practical advice on how to avoid falling victim to these scams. It is crucial for individuals, particularly those who may be more susceptible to social engineering tactics, to be aware of fundamental principles. For instance, individuals should recognize that the government will never request payment in cryptocurrency, legitimate work-from-home opportunities will not require payment from the workers, and investing in cryptocurrency based on the recommendation of an unfamiliar person should be avoided.

In the aftermath of a scam, targets of pig butchering and other cryptocurrency thefts often seek assistance from trusted attorneys in their communities. While many attorneys may incorrectly assume the scammers’ use of fictitious identities precludes any possibility of recovery, it is imperative that we educate ourselves about potential avenues for recovery and then correctly inform the individuals who seek our advice.

If the targets recently converted fiat currency to the cryptocurrency that was stolen, the targets should alert their banks where they had their fiat currency on deposit and file a report with the bank. While the bank has little recourse once the customer converts currency to crypto, having a copy of the report will be helpful for subsequent steps. Every individual victimized by a crypto scam should also report the incident to law enforcement. Local law enforcement will be unable to assist, but requesting a written report can be helpful for the next step.

After reporting the crime to local law enforcement, victims should access the FBI’s Internet Crime Complaint Center (IC3). IC3’s homepage contains a menu-guided process for filing a report via https://www.ic3.gov/. Submitting copies of the bank and police reports will aid this process. Attorneys have the education and training to guide clients through this process. IC3 gathers complaints related to several types of cybercrimes and offers valuable resources for learning about current and emerging cyber threats.

Clients should also collaborate with their attorneys to identify a lawyer or industry expert capable of conducting an initial blockchain analysis of the targets’ transactions. Through effective blockchain analysis, it is possible to track the targets’ crypto if it remains on the blockchain. Thus, prompt action is critical.[14]

With results from blockchain analysis available, targets or their representatives should send Know Your Customer (“KYC”) and Anti-Money Laundering Act of 2020 (“AML”) letters to each identified crypto exchange. This letter should also reference the exchange’s Terms and Conditions, which empower exchanges to freeze wallets suspected of being involved in criminal activities. Freezing the wallet prevents the scammer, mule, or launderer from moving the stolen crypto.

Potential civil action remedies may be available, depending upon the findings from blockchain analysis. Seeking a Temporary Restraining Order (TRO) and a subsequent Preliminary Injunction to freeze the involved crypto wallets when appropriate strengthens the KYC and AML letter and provides the exchanges, most of which are beyond the jurisdictional reach of our courts, a stronger justification for instituting a freeze. Failing to freeze the identified wallets could place the exchanges at risk of being implicated in criminal enterprises, which most exchanges strive to avoid.

Having a TRO converted to a Preliminary Injunction requires service of process, but the scammers use fictitious names. Thus, service by traditional methods is not possible. Because blockchain analysis reveals crypto wallet addresses, attorneys can know which crypto wallets the defendants who perpetrated the scams are using. Attorneys can perfect service using non-fungible tokens (NFTs). This practice has been approved by multiple federal and state courts around the country. Obtaining service of process with this method requires the use of Alabama Rule of Civil Procedure 4.4. in state court or Federal Rule of Civil Procedure 4(f)(3) in federal court, a Court order authorizing service using this method, and the institutional knowledge or expertise to deploy and monitor an NFT appropriately.

Attorneys hold a pivotal position in assisting targets of pig butchering scams. By understanding the intricacies of these fraudulent activities, attorneys can guide clients in exploring legal remedies and pursuing recovery of lost assets. Staying abreast of the latest scam tactics is essential, as is fostering collaboration with financial institutions and law enforcement, while advocating for enhanced consumer protections. Through a proactive and strategic approach, legal professionals can effectively support their clients, helping them navigate the repercussions of financial fraud. The overarching objective remains – reduce and ultimately eradicate these scams.

ACKNOWLEDGMENTS:

I have learned from consulting industry experts and law enforcement officials who assist our law firm in handling crypto theft cases. In addition to cited reference materials, this article also draws upon the work of former prosecutor Erin West. Ms. West founded and currently heads Operation Shamrock, an organization working to raise awareness of pig butchering.

[1]“China Bans Gambling from Appearing in Gaming Devices”, Xinhua (published on the website of the State Council of the PRC), 22 November 2019. https://english.www.gov.cn/statecouncil/ministries/201911/22/content_WS5dd73da4c6d0bcf8c4c17978.html

[2][2]“Chinese Police to Fight Gambling”, Xinhua (published on the website of the State Council of the PRC), 30 Jan 2018 (http://english.www.gov.cn/state_council/ministries/2018/01/30/content_281476030651654.htm)

[3]Ministry of Public Security Statement, 9 April 2020 (http://www.gov.cn/xinwen/2020-04/10/content_5500907.htm)

[4] “China Gambling Outflows Deemed National Security Threat”, Asia Gaming Briefs, 28 September 2020 (https://agbrief.com/headline/china-gambling-outflows-deemednational-security-threat/link no longer active)

[5] https://www.cfr.org/in-brief/how-myanmar-became-global-center-cyber-scams

[6] Federal Bureau of Investigation 2023 Internet Crime Report, 2023_IC3Report.pdf. Information on 2024 losses is not available at the time this article was written.

[7] The remaining losses consisted primarily of tech support scams, personal data breaches, extortion, and government official impersonation.

[8] https://www.unodc.org/unodc/en/money-laundering/overview.html

[9] Burton, S. L., & Moore, P. D. V. M. (2024). Pig Butchering in Cybersecurity: A Modern Social Engineering Threat. SocioEconomic Challenges, 8(3), 46-60. https://doi.org/10.61093/sec.8(3).46-60.2024.

[10] Id.

[11] Id. 

[12] Burton, supra.

[13] https://time.com/6344077/pig-butchering-scam-trafficking-victims-trauma/

[14] But be on alert. Scammers also operate “crypto recovery” scams that promise blockchain analysis but that do nothing more than steal more crypto from those already victimized.