Warning over ‘pig butchering’ scam in South Africa

Banking group Capitec outlined the most prevalent scams targeting its consumers in 2024, including one known as “pig butchering.”

According to the South African Banking Risk Information Centre (SABRIC), South Africa has seen a sharp rise in banking and push payment fraud, with incidents up by 40% from the previous year.

Online banking platforms remain primary targets, with phishing and social engineering tactics on the rise.

Authorities and banks are urging the public to be vigilant and adopt stronger security measures to combat this growing threat.

Capitec noted that authorised push payment fraud is a growing concern among its consumers, often leading to significant financial losses.

Capitec’s active client base grew by 10% to 22 million in 2024, and its app user base grew by 19%, meaning scams flagged by Capitec are a good indication of those targeting the average South African.

Push payment fraud, where victims are tricked into authorising payments to criminals, has become increasingly common.

Cybercriminals often pose as trusted entities, such as banks or service providers, convincing individuals to transfer funds to fraudulent accounts.

When asked about the most popular tactics used by criminals, Capitec highlighted several, including a scam called “Pig Butchering”, where scammers trick victims into making multiple payments under the guise of investing or trading.

This scam, originating from Southeast Asia, involves fraudsters who meticulously “fatten up” their victims before financially “slaughtering” them.

The name derives from the tactic of building a long-term relationship with the target, often through online dating or social media platforms, before deceiving them into investing in fake cryptocurrency schemes.

The scam begins with fraudsters posing as potential romantic partners or business associates.

They spend weeks or even months gaining the trust of their victims, who are often middle to upper-class individuals seeking investment opportunities.

Once trust is established, the scammers introduce the idea of investing in lucrative cryptocurrency deals, typically through fake websites or apps that appear legitimate.

Victims, believing they are making profitable investments, are persuaded to transfer increasingly larger sums of money.

However, when they attempt to withdraw their profits, the scammers disappear entirely, leaving victims financially devastated.

Other scams highlighted by the bank include:

• Goods and Services Scams: Victims pay deposits or full amounts for goods or services that are never delivered.

• Investment Scams and Ponzi Schemes: Fraudsters promise high returns with minimal risk, often leading victims to invest in schemes that are not legitimate.

• Advance Fee Scams: These scams require victims to pay a fee upfront for a job, loan, prize, or inheritance that doesn’t exist. This includes job scams, often via platforms like WhatsApp and Telegram. Victims are lured by offers of easy money through simple tasks but end up paying fees to scammers.

To mitigate the risk of falling victim to these scams, Capitec advises consumers to:

• Be sceptical of offers that seem too good to be true, especially those promising quick or high returns. If it sounds too good to be true, it likely is.

• Avoid paying upfront fees for jobs, loans, or prizes. Reputable companies will not ask for such payments.

• Research any investment opportunities thoroughly and ensure they are offered by authorised financial service providers.

• Exercise caution with bargains on the Marketplace and always meet in person in a safe, public location if exchanging goods.

• Do not click on links in unsolicited messages asking for personal or banking information, and be wary of requests for personal details or payments from unknown sources.

• Verify the source of calls or messages claiming to be from your bank or other trusted entities. Use official contact numbers and check your bank’s verified social media accounts.

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