A new type of cyber fraud called the "Pig Butchering Scam" or "Investment Scam" is affecting unemployed youths, housewives, students, and needy individuals in India. The Union Home Ministry’s latest annual report highlights how victims lose significant amounts of money daily due to these scams.
How the Scam Works
The "Pig Butchering Scam" originated in China in 2016. Cybercriminals build trust with their victims over time and eventually convince them to invest in crypto currencies or other schemes. Once the money is invested, the fraudsters steal it. The name refers to the practice of "fattening" a pig before slaughter, symbolizing how scammers manipulate their targets for financial gain.
Misuse of Technology Platforms
The report reveals that cybercriminals exploit platforms like Google and Facebook to carry out these scams.
- Google Services: Scammers use Google Ads to run targeted campaigns, even from across borders.
- Facebook: Criminals launch illegal lending apps using sponsored Facebook posts.
- WhatsApp: This remains the most misused social media platform, with 14,746 complaints reported till March 2024. Other platforms like Telegram, Instagram, and YouTube are also targeted.
Steps Taken to Combat the Scam
The Home Ministry’s Indian Cyber Crime Coordination Centre (I4C) has initiated several measures:
- Partnerships: Collaborating with Google and Facebook to share intelligence and block malicious activities.
- National Cybercrime Threat Analytical Unit (NCTAU): Analyzing complaints to identify new trends and inform stakeholders like banks, e-commerce platforms, and payment gateways.
- Cyber Volunteer Framework: Engaging citizens as cyber volunteers to report illegal content, promote cyber hygiene, and assist law enforcement. Over 54,833 volunteers have joined by March 31, 2024.
Impact of the Initiatives
Since April 2021, proactive measures have prevented more than ₹16 billion from falling into the hands of scammers, benefiting over 575,000 victims. This was achieved by freezing suspicious transactions and returning the seized funds to the rightful owners.
The report underscores the importance of technology companies working closely with law enforcement to combat cybercrime. Citizens are also urged to remain vigilant and report suspicious activities. By combining government action, public awareness, and corporate responsibility, India aims to reduce the growing threat of cyber fraud.
