<p>In its annual report, the Union Home Ministry has warned the public against getting trapped in organised 'pig-butchering scams'. Sumit Pande explains the investment 'scams' where cyber-criminals swindle gullible investors by encouraging them to put their money in fabricated online trades often operated from abroad.</p>.<p><strong>Where did the 'pig-butchering scam' originate?</strong></p>.<p>These are online Ponzi schemes that were first reported in China in 2016. Also known as “sha zhu pan,” which in Mandarin would roughly translate to 'killing pig game'. The scams involve defrauding people by organised cyber scammers who use fake online identities to lure investors looking to make a quick buck. 'Pig butchering' is an analogy drawn from abattoirs that refers to the 'fattening-up' of the animal for slaughter.</p>.Karnataka 2024: Power tussle, scams rock Congress, factional frictions hit BJP; JD(S) trips on sex tapes.<p><strong>How do cybercriminals lure victims?</strong></p>.<p>The 'host' or scammer contacts victims through social media, dating apps, or deceptive messages. The MHA report refers to the use of Google service platforms, Google advertisements, and sponsored Facebook advertisements to target victims. Once the target or the 'pig', has been identified and contacted, the 'host' a 'friendship', encouraging the victim to explore online investments and cryptocurrency trading by exploiting high ambiguity in the crypto space and investors’ urge for high returns.</p>.<p><strong>How does scamming happen?</strong></p>.<p>Using fraudulent online trading apps, the 'host' deceives the victim into believing they’re making profits from fabricated online trades. After burnishing the credentials of the trading firm, the scammer encourages investors to increase the ticket size of their investment before 'slaughtering' or stealing their money.<br>The scams are exposed when the victims seek to withdraw their money. In most cases, since the transactions are done through blockchains, it is extremely difficult to retrieve the money.</p>.Drugs, scams and sin: Myanmar’s war has made it the global crime capital.<p><strong>How many such cyber frauds have been reported from India?</strong></p>.<p>The National Cybercrime Threat Analytical Unit in its March 2024 report registered and analysed more than 37,500 complaints about the misuse of big tech platforms. Of this, the highest number, almost 42% are related to WhatsApp. Data from the report show that 14,746 cybercrime complaints were related to WhatsApp, 7,651 against Telegram, 7,152 against Instagram, 7,051 against Facebook, and 1,135 against YouTube till March 2024.</p>.<p><strong>What did the MHA say in its annual report?</strong></p>.<p>The ministry said such crimes are a global phenomenon that may also involve “large-scale money laundering and cyber slavery.” The government is partnering with Google for intelligence sharing like flagging suspicious digital lending apps, and reporting on the abuse of free hosting domains, and banking malware. The Indian Cyber Crime Coordination Centre is also working on capacity building to tackle such frauds.</p>
<p>In its annual report, the Union Home Ministry has warned the public against getting trapped in organised 'pig-butchering scams'. Sumit Pande explains the investment 'scams' where cyber-criminals swindle gullible investors by encouraging them to put their money in fabricated online trades often operated from abroad.</p>.<p><strong>Where did the 'pig-butchering scam' originate?</strong></p>.<p>These are online Ponzi schemes that were first reported in China in 2016. Also known as “sha zhu pan,” which in Mandarin would roughly translate to 'killing pig game'. The scams involve defrauding people by organised cyber scammers who use fake online identities to lure investors looking to make a quick buck. 'Pig butchering' is an analogy drawn from abattoirs that refers to the 'fattening-up' of the animal for slaughter.</p>.Karnataka 2024: Power tussle, scams rock Congress, factional frictions hit BJP; JD(S) trips on sex tapes.<p><strong>How do cybercriminals lure victims?</strong></p>.<p>The 'host' or scammer contacts victims through social media, dating apps, or deceptive messages. The MHA report refers to the use of Google service platforms, Google advertisements, and sponsored Facebook advertisements to target victims. Once the target or the 'pig', has been identified and contacted, the 'host' a 'friendship', encouraging the victim to explore online investments and cryptocurrency trading by exploiting high ambiguity in the crypto space and investors’ urge for high returns.</p>.<p><strong>How does scamming happen?</strong></p>.<p>Using fraudulent online trading apps, the 'host' deceives the victim into believing they’re making profits from fabricated online trades. After burnishing the credentials of the trading firm, the scammer encourages investors to increase the ticket size of their investment before 'slaughtering' or stealing their money.<br>The scams are exposed when the victims seek to withdraw their money. In most cases, since the transactions are done through blockchains, it is extremely difficult to retrieve the money.</p>.Drugs, scams and sin: Myanmar’s war has made it the global crime capital.<p><strong>How many such cyber frauds have been reported from India?</strong></p>.<p>The National Cybercrime Threat Analytical Unit in its March 2024 report registered and analysed more than 37,500 complaints about the misuse of big tech platforms. Of this, the highest number, almost 42% are related to WhatsApp. Data from the report show that 14,746 cybercrime complaints were related to WhatsApp, 7,651 against Telegram, 7,152 against Instagram, 7,051 against Facebook, and 1,135 against YouTube till March 2024.</p>.<p><strong>What did the MHA say in its annual report?</strong></p>.<p>The ministry said such crimes are a global phenomenon that may also involve “large-scale money laundering and cyber slavery.” The government is partnering with Google for intelligence sharing like flagging suspicious digital lending apps, and reporting on the abuse of free hosting domains, and banking malware. The Indian Cyber Crime Coordination Centre is also working on capacity building to tackle such frauds.</p>