You have probably been subjected to attempts of "Pig Butchering Scam", even if you do not know that it is called that and that there are real scam factories behind it. It is a financial scam that is becoming increasingly common, especially in the context of cryptocurrencies (difficult for authorities to recover) and online investments. It is called that because the scammers "fatten" the victim, just like you would do with a pig before slaughtering it. In other words, the scammers spend time building trust in the victim (becoming friends), then convincing them to invest large sums of money, before disappearing. They have been widespread for several years now and in particular have seen the boom during the Covid19 pandemic (especially on social apps). 

HOW THE SCAM HAPPENS
The scam often begins with a casual contact via social media, dating apps, or messaging platforms. The scammer poses as a friend, potential partner, or financial advisor. The scammer spends time building a relationship with the victim, sharing personal details (often false) and establishing trust.
After gaining the victim's trust, the scammer introduces an investment opportunity. Typically, this involves investing in cryptocurrencies or trading platforms, which appear legitimate (also due to screen fakes) but are actually scams.
At first, the victim sees earnings, which are often just a simulation created by the scammer. This encourages the victim to invest more and more, perhaps by convincing them to involve friends or family. Once the scammer believes they have extracted as much as possible from the victim, they disappear, leaving the victim without money and without the ability to withdraw.

SCAM FACTORY
"Scam Factories" are real criminal factories, where groups of scammers work in teams to carry out large-scale scams. These criminal organizations often operate in countries where there is little or no legislation for this type of behavior. The people who work in these factories may be individuals who have been deceived or forced to participate, sometimes victims of human trafficking.

The key points are:
-Training: scammers are trained on how to manipulate victims, how to maintain conversations and build trust. They may also learn specific techniques to identify potential vulnerable victims. They are also taught how to build fake identities and principles of Social Engineering.

-Organized Structure: these groups often function like companies, with an internal hierarchy, working hours and goals to achieve. Some members are responsible for the initial contact, others for technical support, and still others for collecting the money.

-Use of Technology: sophisticated software is used to create fake investment sites, manipulate markets and maintain the appearance of legitimacy.

If fooled, these scams are difficult to combat because they often involve “soft” jurisdictions, making legal action or money recovery difficult.

SOME FAMOUS SCAM FACTORIES
The bankruptcy of Heartland Tri-State Bank in Elkhart (Kansas, USA) was directly linked to a scam of this type. CEO Shan Hanes was discovered to have embezzled $47 million from the bank in an attempt to secure his supposed funds. Hanes was charged in federal court with embezzlement in February 2024 and sentenced to 24 years in prison.
Shwe Kokko is one of the most notorious locations in Myanmar (Kayin state, near Thailand) associated with "scam factories". Shwe Kokko began as an investment project by Chinese companies, officially intended to become a new "smart city" with modern infrastructure, casinos and residential complexes. However, this project later became a haven for illegal activities, including large-scale scams and human trafficking. In Shwe Kokko, several scam factories have been set up in physical buildings (not online). These sites employ dozens to hundreds of people, often migrant workers from various Asian countries, who are forced or tricked into working as scammers. Many of the people employed in these factories are brought to Shwe Kokko with the promise of legitimate work, only to find themselves held captive and forced to participate in these scams. Working conditions are often inhumane, with threats of physical violence if they fail to meet the goals set by their “supervisors”.

Shwe Kokko is under the control of the Karen National Liberation Army (KNLA), which has some autonomy from Myanmar’s central government. These militias allow the scam factories to exist in exchange for bribes or other forms of financial support.
There are rumors that local authorities are complicit or turn a blind eye to what happens in Shwe Kokko. This makes it difficult for victims or international organizations to intervene and stop these activities.

There are also other areas often characterized by weak governance, the presence of armed groups or widespread corruption, which allow these illegal operations to thrive. Here are some more notes:

1) Golden Triangle Special Economic Zone (SEZ) (Laos)
Located in the Golden Triangle between Laos, Thailand, and Myanmar, it is officially an economic development zone, but is also known to be a hub for illicit activity, including casinos and drug trafficking. Scams operating in the Golden Triangle SEZ are often linked to online gambling platforms and fake investments. It is a base of operations for international scams. The region is heavily militarized, making it difficult to fight crime.

2) Clark Freeport Zone (Philippines)
Located near Manila, this is a special economic zone with a lot of foreign investment. However, cases of scam factories have also emerged here. Scams operating in this area are often linked to fake call centers that pose as technical support or financial services, attracting victims from all over the world. Those involved in these scams may be lured by promises of legitimate work but find themselves trapped in exploitative situations.

3) Sihanoukville (Cambodia)
A Cambodian coastal city that has become famous in recent years for its chaotic development linked to Chinese investment, with the construction of casinos and resorts. However, many of these casinos have been closed by the Chinese authorities (gambling is prohibited), which has led criminals to diversify their activities.
The city is associated with a number of scam factories that operate mainly in the online scam sector, including pig butchering. The employees of these factories are often victims of trafficking, coming from various Asian countries, and work in conditions of modern slavery. The presence of local criminal networks, in cahoots with foreign investors, has made it difficult for local and international authorities to intervene effectively.

4) Bavet (Cambodia)
Bavet is a border town between Cambodia and Vietnam, known for being a transit point for the illegal trafficking of goods and people. The city has a long history of scam centers. Scam factories in Bavet focus on investment scams, particularly related to cryptocurrencies.

5) Northern Thailand
Scam factories have been discovered near the border with Myanmar and Laos, including romance scams, fraudulent investment schemes and fake trading platforms. Many workers are held against their will, often in slave-like conditions. The presence of armed groups and the difficult accessibility of the region complicate police operations and make it difficult to close these centers.

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