In summary
- Sha Zhu Pan frauds, or Pig Butchering frauds, are a specific fraud typology that involves the building of trust with a victim over an extended period before exploiting them for cash, often via a sham investment scheme. Such frauds have grown explosively in recent years.
- Victims of such frauds will often be walked through the acquisition of cryptocurrency before being instructed to transfer it to the fraudster. To seek recovery, a necessary step will be to trace the movement of funds to identify an entity or individual that can provide further information about the fraudster or to freeze funds.
- Tracing cryptocurrency through the blockchain is possible, but fraudsters continue to employ sophisticated techniques to obfuscate transaction flows. Such techniques include layering, chain-hopping and, most effectively, the use of tumblers.
- If a tracing exercise is successful, a victim may pursue both criminal and civil routes to recover stolen assets.
Discussion points
- Pig Butchering scams are on the rise
- Crypto-tracing techniques are needed to effect recovery
Referenced in this article
- Fangzhou Wang and Xiaoli Zhou, Persuasive Schemes for Financial Exploitation in Online Romance Scam: An Anatomy on Sha Zhu Pan in China, Victims & Offenders
What is a Sha Zhu Pan fraud?
Sha Zhu Pan frauds are increasing in prevalence across the globe, and are leaving thousands of unfortunate…
