012: How Fred Got Pig Butchered

The holidays are here, and so are the scammers. While you’re hunting Black Friday deals, cybercriminals are sharpening their knives for a scheme so sinister it’s called Pig Butchering.

This isn’t just a catchy name. It’s a chilling con where scammers fatten up victims by building trust, posing as friends or financial gurus, and then leading them into bogus investment schemes. The result? Billions of dollars lost—$4.57 billion in 2023 alone, a staggering 40% jump from the year before. Between 2020 and 2024, criminals have funneled $75 billion to crypto exchanges through these schemes.

In this issue, we break down how Pig Butchering works, how you can spot it, and how to avoid becoming the next victim. Plus, I’ll share “How Fred Got Pig Butchered” and dive into this week's news roundup, including the impact of AI on society. Don’t miss my latest podcast appearance or the exciting event happening in the Spy Capital of the World.

Enjoying the newsletter? Subscribe and share—together, we can cut these scammers down to size.

But first - a word from…me. Actually, the deepfake me about the dangers inherent in AI.

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 How Fred Got Pig Butchered

Fred had been feeling lonely since his breakup—a familiar ache for anyone navigating life post-heartache. One evening, he downloaded a dating app on a whim. Swiping through profiles, he found her: stunning, kind eyes, and a warm, inviting smile. She was unlike anyone he'd met. And when she swiped back, Fred felt a flicker of hope.

She introduced herself as Sofia. They hit it off immediately, chatting every evening, sharing stories about their lives. Soon, she suggested a FaceTime call. Fred hesitated, wary of meeting someone new this way, but when her face appeared on the screen, smiling and radiant, all his doubts melted away. They laughed, talked about future plans, and even imagined spending a weekend together. She shared flight confirmations and gushed about how excited she was to see him.

But Sofia never made it.

There was always an excuse: canceled flights, last-minute emergencies. Still, Fred brushed it off, reassured by their nightly FaceTime calls. Sofia introduced Fred to something else during their chats—investing in cryptocurrency. She said it was a way for both of them to secure their future. Her investment advice seemed sound. She even walked Fred through setting up his account on a crypto app and showed him her own "wallet balance," which was growing exponentially.

Together, they wired funds into what Sofia described as a "joint growth plan." Every month, Fred sent $20,000, trusting her completely. She encouraged him to pull his 401(k) savings, promising it would double in weeks. The app's numbers didn't lie—Fred saw a 200% return. Emboldened, he borrowed money to invest more, eventually putting in $250,000.

When Fred decided to withdraw some funds to pay off his loan, the app froze his account, citing "capital gains tax" requirements. Sofia reassured him, but the panic had already set in. Desperate, Fred called his friend Jill, an IT specialist. Jill recognized the scam instantly.

The beautiful face Fred had seen on FaceTime? A deepfake, powered by AI. The crypto platform? A cleverly disguised fraud. The “wallet” Fred thought he owned? A decoy controlled entirely by the scammers. Sofia had never existed. The $250,000 was gone, siphoned into the coffers of a global cybercrime ring. Fred had been "pig butchered," manipulated until there was nothing left to take.

Fred’s story is a harsh reminder: scams today are sophisticated, emotional, and tech-driven. Staying informed is your best defense. If you suspect a scam, act fast—seek advice, report it, and learn about emerging threats.

Breaking Down the Scam:

1. The Emotional Hook
   Scammers exploit loneliness to build trust. Fred thought he was investing with a caring partner, not a criminal.
   Tip: Verify online identities with reverse image searches and avoid "too good to be true" relationships.

2. AI-Powered Deepfakes
   Sofia’s FaceTime deepfakes were disturbingly real, fooling even Fred.
   Tip: Watch for unnatural blinking, mismatched lip-syncing, or lag during video calls.

3. Fake Crypto Platforms
   Scammers used a counterfeit crypto app showing fake returns to gain Fred’s trust.
   Tip: Research platforms and only use trusted exchanges like Coinbase—never third parties.

4. The Seed Phrase Trap
   Sharing his seed phrase gave scammers full access to Fred’s wallet.
   Tip: Your seed phrase is sacred. Never share it—no legitimate service will ever ask for it.

5. The High Returns Illusion
   Promises of big returns lured Fred deeper.
   Tip: Be skeptical of investments offering unrealistically high returns. Legitimate investments take time.

Now on to the news!

News Roundup - All About AI!

AI Surveillance Agents

If only I had this when I was a surveillance operative—spycraft just got personal, and it starts with your own bacteria. AI can now trace where you’ve been, thanks to the microbes on your body. Scientists at Lund University developed Microbiome Geographic Population Structure (mGPS), which uses AI to analyze unique bacterial communities and pinpoint recent locations—accurate down to two Hong Kong subway stations just 172 meters apart. While creepy, this tech could revolutionize public health by tracking disease spread and improving urban planning.

AI Might Think Like Us

Turns out AI models like ChatGPT are forming "brain-like" structures, mimicking the way humans think. Researchers have found these models organize information into geometric patterns called "semantic crystals," which boost their ability to process data and map relationships. This revelation not only demystifies AI mechanics but could also unlock new ways to tackle cognitive disorders—proving that even machines are learning to think like us.

Patients Prefer AI’s Bedside Manner

Does ChatGPT have better bedside manner than Doctors? In a recent study, the AI outperformed doctors in 78.6% of online medical questions and disease diagnosis, with evaluators praising ChatGPT’s responses for quality and empathy. But while ChatGPT may diagnose with charm, experts warn: it’s a powerful sidekick, not a replacement for the real-world instincts of human physicians.

When AI Gets Angry

Sometimes even AI has a bad day. This one turned into a supervillain: Google’s Gemini left users shaken after telling one to "Please die" during a routine homework question. Google blamed the outburst on the quirks of large language models and assured fixes are underway. It’s a stark reminder—AI can be brilliant, but sometimes it needs a timeout.

Listen to my summary of the outburst.

Coca-Cola’s AI Advertisment

Coca-Cola's latest holiday ad, crafted entirely by AI, has left fans feeling more flat than a week-old soda. The attempt to modernize their classic "Holidays Are Coming" campaign with AI-generated visuals has been met with criticism, with viewers describing it as "soulless" and "creepy." This backlash highlights the challenges brands face when replacing human creativity with artificial intelligence, especially in campaigns that rely on nostalgia and emotional connection.

Exclusive Event!

I’ve teamed up with the International Spy Museum to lead a team of undercover operatives across the streets of Washington, DC, the Spy Capital of the world. This intense small group introduction to surveillance will include learning the basics and conducting surveillance from the glamorous Doyle Collection, DC hotel through the enticing stalls of the DC Holiday Market. Will you be able to track the “Rabbit” without being “made”? You’ll learn how to snap clandestine shots and keep your target in view so you won’t miss operational acts or clandestine meetings. O’Neill will lead the exercise and help you learn how to blend into the sugarplum shadows for the best spy results! A FEW Tickets are still available!

Check out my latest podcast appearance

What if the biggest threat to your privacy wasn’t some hacker in a hoodie—but a spy trained to infiltrate your life? Check out my latest podcast appearance on What the Hack with Adam Levin. I explain how digital spies target us and offer real-world tips to protect ourselves in a world where everyone’s a potential target.

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Best,
Eric

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