ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Single Mother Loses Her Entire $100,000 Retirement Savings In Tinder 'Pig Butchering' Scam; What Is It?

The fraudulent scheme involves romance and building trust with victims only to eventually exploit them financially.
PUBLISHED JUN 22, 2023
Cover Image Source: Pexels/Tara Winstead
Cover Image Source: Pexels/Tara Winstead

A recently divorced woman fell victim to a cryptocurrency scam on the popular dating app, Tinder. The mother of three lost her entire 401(k) savings of $100,000 to a scammer who posed as a French entrepreneur, New York Post reported. This incident brings to light the growing issue of "pig butchering" schemes, a term used to describe scams that exploit individuals emotionally before deceiving them with fake investment opportunities.

The Power of Deception

Rebecca Holloway, 42, said that Fred showered her with attention and messages, unlike anyone she had encountered on Tinder before. She felt a special connection with him since they both had three children. As they grew closer, Fred convinced her to invest in cryptocurrency, taking advantage of the recent crypto crash and the vulnerability of a single woman approaching middle age, according to Daily Mail.com.

Holloway admitted that the signs of deception were evident, but at the time she wanted to believe the relationship was genuine.

Image Source: Pexels/Tero Vesalainen
Image Source: Pexels/Tero Vesalainen

The scam that Holloway fell victim to is part of a larger trend known as "pig butchering". The term "pig butchering" refers to the process of fattening victims up emotionally before "butchering" them financially. This scheme involves building trust and romance with victims over a span of months, only to exploit them financially. Scammers employ sophisticated tactics, using fake investment advice as a way to drain victims' funds. 



 

Holloway's loss of her entire 401(k) savings is not an isolated incident. Just last month, another woman named Shreya Datta, a 37-year-old tech executive, was scammed out of over $450,000. According to the US Department of Justice, investment fraud was responsible for the highest reported losses of any scam in 2022, totaling a staggering $3.31 billion.

Criminal groups operating from centers in Laos, Myanmar, and Cambodia are reportedly behind pig-butchering scams. They lure unsuspecting victims by offering legitimate jobs, only to enslave them into running these scams. The scammers are provided with sophisticated scripts to effectively target their victims, exploiting their emotions and trust.

The popularity of cryptocurrencies has created an ideal opportunity for scammers. Loneliness resulting from the pandemic and the allure of overnight crypto riches make dating apps a prime hunting ground. Millennials, in particular, are being targeted through apps like Tinder, Bumble, and Hinge. Scammers often move the conversation to encrypted messaging platforms like WhatsApp to avoid detection, according to The New York Times. 

They gradually introduce the idea of cryptocurrency investment, presenting themselves as successful traders offering lucrative, low-risk opportunities.

Image Source: Pexels/D'Vaughn Bell
Image Source: Pexels/D'Vaughn Bell

This type of scam stands out due to its intricacy. Victims are directed to realistic-looking websites displaying charts and tickers, giving the impression of a legitimate exchange. The scammers constantly change the names and addresses of the fake exchanges to stay ahead. Initially, victims are allowed to withdraw small amounts to gain their trust before larger sums are deposited and subsequently stolen.

Cryptocurrencies offer scammers several advantages. The relative privacy they provide, coupled with the lack of central banks or deposit insurance, makes it difficult to trace and recover stolen funds. Bitcoin transactions are publicly visible, but criminals can obscure the money trail through anonymous digital wallets.

Image Source: Pexels/RDNE Stock project
Image Source: Pexels/RDNE Stock project

The Aftermath for Victims

The victims of these scams are left devastated and financially ruined. They struggle to comprehend how individuals they believed they had a connection with could deceive them so thoroughly. The emotional toll is immense, and the financial consequences can be dire, leaving victims to pick up the pieces of their shattered lives.

The increasing prevalence of dating app scams has alerted individuals on these platforms. It is crucial to exercise caution when engaging with strangers who offer investment advice. Due diligence and skepticism can go a long way in protecting oneself from falling victim to these sophisticated scams.

MORE ON MARKET REALIST
Ozark Trail 64 oz Water Bottles were recalled after the lids of faulty bottles forcefully ejected.
3 hours ago
The player laughed and giggled her way through the puzzles to win prizes worth over $57,000.
4 hours ago
Scott Riccardi placed an unbelievable wager during Final Jeopardy! to win a massive amount in a day!
6 hours ago
The guest got a 200% return on investment on her sculpture that she bought from Macy's.
7 hours ago
Jennings had a record-setting winning streak as a contestant before he became the host.
1 day ago
The player, Ron Wheeler, tragically got no clues after his letter picks for the final puzzle.
1 day ago
The former kids champion, Skyler Hornback knew what was coming.
1 day ago
The fans took issue with the clue being too tough and unnecessary for the contestants.
2 days ago
Cuban wanted to strike a deal with the founder of Coconut Girl and gave her an ultimatum.
2 days ago
Although the word did make a lot of difference, some fans felt that the decision was ridiculous.
2 days ago
The guest, who found the item online, didn't think it was the real deal until he heard its value.
3 days ago
The player Samantha secured the first big win of Ryan Seacrest's run on the show.
3 days ago
The sisters wanted to keep their father's legacy alive, but also had their careers to focus on.
3 days ago
The shopper noticed that the watermelon which she bought three days ago was deflated.
3 days ago
The guest couldn't believe that her collection was worth so much money.
4 days ago
While all the Sharks were out, Mark Cuban saw the potential in "Garage Celebrations."
5 days ago
The loss was ironic as the retired teacher coulnd't get a phrase commonly used in classrooms.
5 days ago
The recalls were issued for a range of products including tires, air conditioners and power banks.
5 days ago
The guest who got the item as a gift from a neighbor had little to no idea about its significance.
5 days ago
Harrison got a good deal for the fossil although it wasn't what he had thought.
6 days ago