Digital landscape is continuously evolving, and the companies and consumers are adapting to the changing realities. Scamsters too are keeping the pace, and at times are a step ahead, always keeping law enforcers on their toes. In some parts of the world, they are now busy tackling a fresh scam called ‘pig butchering’, which uses a series of fraudulent trading apps available for download on both the Google Play Store and Apple’s App Store, reported The Times of India, citing cybersecurity firm Group-IB.
These applications have duped thousands of unsuspecting users before being identified and removed from the platforms.
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The report highlights that these fake apps, classified as the ‘UniShadowTrade’ malware by the researchers, masqueraded as legitimate trading tools. They lured users into a deceptive investment scheme known as ‘Pig Butchering’.
Group-IB researchers uncovered that the ‘UniShadowTrade’ apps were developed using the UniApp framework and first appeared in May. The app targeted iOS users under the name ‘SBI-INT,’ while Android users were tricked by apps named ‘Finans Insights’ and ‘Finans Trader6’. Before their removal, these apps had been downloaded over 5,000 times by Android users, TOI said.
If you have any of these apps on your devices, it is strongly recommended to uninstall them immediately.
How the hackers operated
To mislead users, the apps initially presented themselves as legitimate tools. On iOS, SBI-INT posed as an app for “algebraic mathematical formulas and 3D graphics volume area calculations”. On Android, the apps were disguised as financial news aggregators. Once installed, however, these apps directed users to fake trading platforms accessible only via invitation codes.
The scammers relied heavily on social engineering tactics, often establishing trust with victims through dating apps. They even requested that users upload personal documents, such as national IDs and passports, further enhancing the illusion of legitimacy while simultaneously stealing sensitive information.
Although these apps have been removed from the official app stores, hackers have shifted to using phishing websites to continue targeting victims, according to the cybersecurity firm.
The ‘UniShadowTrade’ apps are capable of imitating a variety of legitimate cryptocurrency and trading platforms, prompting experts to advise users to be cautious.
What is the ‘Pig Butchering’ scam?
These scams involve building trust with victims over a period of time, often via social media or dating apps, before introducing a fake investment opportunity. Scammers trick victims into depositing money on fraudulent platforms that display fake high returns. However, when victims try to withdraw their profits, they discover the funds have disappeared, along with the scammers.
Origin and spread of the scam
These scams first appeared in China around 2016, initially preying on users of same-sex dating apps before expanding to other platforms. The Covid-19 pandemic worsened the problem as many gambling businesses in Southeast Asia pivoted to scam operations due to reduced patronage. Cambodia and Myanmar have since become major hubs for these scams, often involving trafficked individuals forced to participate in fraudulent activities.
How the scam works
Scammers typically follow a step-by-step process:
– Creating fake identities: Using stolen images, scammers build appealing online profiles, often portraying a luxurious lifestyle.
– Building trust: Initial interactions, usually on dating or social media platforms, aim to establish an emotional connection.
– Investment manipulation: Victims are slowly convinced to invest increasing amounts of money into fraudulent schemes, under the promise of high returns with minimal risk.
