The Australian Federal Police (AFP) has arrested four suspected members of a syndicate of fake financial investments that used the “Pig Butchering” method and are estimated to have stolen $100 million from victims around the world.
All four arrested are Chinese nationals living in Sydney. The AFP began investigating them following a tip-off from the United States Secret Service (USSS).
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According to the police statement, the four men had “links” to a fraud that had been carried out in the US that American authorities have been investigating since August 2022.
“An initial analysis of the victims’ reports by the police has identified more than $100 million in losses worldwide attributable to this organised crime syndicate, with the majority of the victims based in the United States,” the statement said.
The first two arrests made in Australia were on 20 October 2022, at the residences of the 19-year-olds, who are charged with offences under section 193B(3) (money laundering). The other two individuals were arrested by AFP agents on 24 November 2022, at Sydney and Melbourne airports, while trying to flee to Hong Kong while holding one-way tickets.
These two men, aged 24 and 27, are said to have had a more senior role in the hierarchy, acting as the syndicate's "operators" in Australia. They now face criminal charges under section 400.2B(4) of the Criminal Code for economic crimes, which carries a maximum sentence of 15 years in prison. All four are scheduled to appear at the Downing Centre Magistrates' Court in January 2023.
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Details of the operation
AFP says the scammers used the “Pig Butchering” method to steal from their victims. The scammers contact their victims on various social media or dating apps and communicate with them until they gain the victim’s trust.
“Pig Butchering” refers to an investment scheme involving cryptocurrencies. Victims are directed to “fake” sites and lured into making “investments” and then provided with fraudulent returns to continue investing. The victims are “trapped” into thinking they are making large sums of money, are tricked into investing even more and eventually discover that they cannot withdraw money from their virtual balance. They used platforms of well-known crypto investments to give a false sense of authenticity to their fake ones.
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Protect Yourself from “Pig Butchering”
Whenever you are approached with an investment opportunity, remember that there are no guaranteed returns, so if this promise is involved, it is likely a scam. If a stranger or old acquaintance approaches you on social media , treat them with suspicion. They may spend long periods of time building a relationship with you before a “big” investment opportunity presents itself.
Fake investment apps also usually generate antivirus warning windows, as they are not digitally signed or released by a legitimate software vendor (ISV). Finally, before depositing money on any website, double-check that the platform is legitimate by performing a thorough online background check.
Information source: bleepingcomputer.com
