GFM's "Web3 & RWA" Anti-Fraud Series

Foreword | It doesn't "trick you into being greedy, " but rather "lends you trust ."

In recent years, with the popularization of Web3, crypto assets, and various online investment platforms, a long-term emotional manipulation scam known as "pig butchering" has spread globally. Its biggest difference from traditional telecom fraud is not more sophisticated rhetoric, but rather a slower pace, deeper disguise, and more systematic psychological manipulation.

Many victims are not victims of "greed," but rather because they have come to regard the other party as a trustworthy person through long-term interactions; the real harvesting begins when this trust is broken and handed over to a platform or a set of narratives.

This installment of the GFM Web3 Anti-Fraud Series uses a "process breakdown" approach to reconstruct the typical closed loop of a "pig butchering scam," helping you see clearly how it transforms "trust " into "funds " step by step.

⸻

1. Traffic Generation: First, create a "realistic" person.

The story usually begins with a seemingly accidental message.
You may receive messages from strangers on platforms such as WeChat, LinkedIn, WhatsApp, Telegram, and Line. These strangers often share several common characteristics:
• Claiming to be from prestigious universities, financial institutions, major tech companies, or blockchain practitioners
• Use alumni, fellow townsmen, colleagues, and shared interests as entry points
Initially, we will not discuss investment or money; we will only focus on daily interactions.

The purpose at this stage is not to scam money, but to "secure a position " .
He first needs to establish a "credible position" in your life: considerate, reliable, successful, and patient. This persona may last for weeks, months, or even longer.

In short: First, make you believe he is a "trustworthy person " .

(Image caption) Most "pig butchering scams" do not begin with investment, but with a seemingly ordinary social interaction. A message or a greeting is often the starting point for long-term emotional manipulation and the establishment of trust.

⸻

II. Testing the waters: Using small "visible benefits" to lower guard

Once trust is established, the other party will "casually mention" a certain investment platform or tool, speaking in a tone that sounds like sharing their life:
• "I've been working on a small strategy recently."
"It was just something I did on a whim, and the profits were pretty good."
• "You can try it with a small amount, no need for more."

After downloading, you may find that the platform information is unclear, the supervision is ambiguous, and the mechanism is vague.
But they'll use a key sentence to push you in: "Just try a small amount. "

The key at this stage is not how much you invest, but your psychological reaction when you first see the financial results.
You begin to believe: this isn't a scam, because "I really made a profit. "

In short: First, we'll give you a "visible positive feedback " .

⸻

Third, adding more: making you feel that "money is under control".

Next, they will gradually guide you to increase your investment and show you "withdrawable" or "deposited" results at certain points, reinforcing three beliefs:
• "This is real money"
• "This platform is safe."
• "I (the other party) made the right choice in bringing you here."

Importantly, this is not a case of platform "mercy," but rather a typical fraud risk control design.
Letting you win a little first is to get you to bet more.

In short: turn "visible benefits " into "controllable illusions " .

(Image caption) Small initial profits are often designed to create the illusion of security that "this is real." Positive returns on paper do not mean that the funds have actually entered a transparent and verifiable market.

⸻

IV. Binding: From you alone, to your "entire network of relationships"

When you have developed a high level of trust in the other party and the platform, the scam often enters its key expansion phase.
The other party will offer "greater opportunities" and use various methods to bind you even more deeply:
• Implies a "short window of opportunity"
• Creating a community of shared interests through "joint investment"
• We encourage you to borrow money from friends and family or invite others to join.

The core of this stage is not investment logic, but interpersonal connections:
You're no longer just an investor; you're betting your face, relationships, and promises on it.

In short: Turn your "financial decisions " into "emotional and relational decisions " .

⸻

V. Harvesting: Just when you want to quit, the rules suddenly change.

The real harvest often happens when you're ready to "claim" or "exit".
The platform may trigger so-called risk control measures under various compliance pretexts, such as:
Funds frozen
· Request for supplementary information
• A "deposit/unlocking fee" is required before funds can be withdrawn.

Meanwhile, the scammers will play along, pretending to be "in the same boat" until the very end:
He might claim he's willing to help you raise money and work together to find solutions, keeping you invested while you're anxious.

The essence of this stage is that the second harvest not only takes away your principal, but also squeezes out your last cash flow and survival instinct.

In short: the exit option is designed as an entry point for "paying again " .

(Image caption) When victims try to withdraw their funds, the platform often suddenly restricts withdrawals under the guise of risk control, review, or compliance. At this point, the real harvesting begins.

⸻

VI. Collapse: The loss of contact was not an accident, but part of the ending.

When you start to question, demand proof, or threaten to report to the police, the other party will often quickly disappear, block you, or cut off contact.
You will suddenly realize:
The other party is not a friend, but part of a manipulation chain.
• So-called transactions may never actually enter the real market.
The figures you see on the books may only be what's displayed in the backend.

In short: the only difference between being an "investor " and being "victims of exploitation " is one last act of trust.

⸻

VII. Secondary Victimization: Debt Collection Traps

Many victims are eager to recover their funds after suffering losses. This is where a new player emerges:
"Debt recovery expert", "top hacker", "asset recovery agency"...

If you pay again because of this, it often constitutes a second scam:
The money can't be recovered, the losses are even greater, and the psychological trauma is even deeper.

In short: "Recovery " is often used as a pretext for the next scam.

⸻

8. Social Costs: It is not a personal tragedy, but a structural event.

The consequences of "pig butchering scams" go far beyond financial loss; they can also lead to:
• Family breakdown, personal bankruptcy
• Corporate cash flow disruption
Long-term psychological trauma
• It could even involve the spillover of risks to financial institutions and high-net-worth individuals.

Some cases will be investigated by law enforcement agencies, but cross-border evidence collection, recovery, and repatriation are often time-consuming and uncertain.

(Image caption) The consequences of "pig butchering scams" go far beyond financial losses. Broken trust, family conflicts, and long-term psychological stress are often the real costs that victims have to face.

⸻

IX. Fundamental Problem: The "Opaque Control" of Centralized Platforms

From a technical and institutional perspective, the core risk of this type of case lies in:
When you entrust your funds to an opaque platform, that platform may possess:
• The power to unilaterally change the rules
• The power to freeze, restrict, or delay withdrawals
• The right to demand additional payments under the guise of "compliance"

in other words:
You may think you're investing, but you could actually be in a closed system completely controlled by others, receiving a "designable outcome."

⸻

10. Next Issue Preview

In the next episode, GFM will be systematically dissected:
How platform-based trading creates a "price illusion"
• Common characteristics of fictitious liquidity and betting mechanisms
• A structure where the interests of the platform's self-operated business conflict with those of the users.
Why might seemingly compliant platforms still harbor high risks?

⸻

GFM Anti-Fraud Message (A Bottom Line Worth Saving)

The core principles of Web3 are: transparency, verifiability, and self-hosting.
Any investment that requires you to "believe first" and promises "low risk and high return" is a high-risk signal.

Please remember three bottom lines:
1. Trust in processes, not in personas.
2. Any opportunity that "urges you to increase your investment " is worth stopping immediately.
3. Be highly wary of any rule that requires payment to exit .

Follow GFM's Web3 & RWA anti-fraud series to see through the traps and protect your assets.

⸻