Telecom
Sophos Uncovers How Criminals are Leveraging “As-a-Service” Business Model with Sha Zhu Pan Kits to Expand Cryptocurrency Fraud
Sophos, a global leader in innovating and delivering cybersecurity as a service, today revealed how sha zhu pan scammers—those conducting elaborate, romance-based cryptocurrency fraud—are leveraging a business model similar to cybercrime “as-a-service” by selling sha zhu pan kits on the dark web, globally expanding to new markets.
Sophos details these advanced sha zhu pan operations (also known as pig butchering) in the article, “Cryptocurrency Scams Metastasize into New Forms.”
Originating from organized crime gangs in China, the new kits provide the technical components needed to implement a specific pig butchering scheme called “DeFi savings.”
Criminals position DeFi savings scams as passive investment opportunities that are similar to money market accounts, often times to people who have no understanding of crypto. Victims only need to connect their crypto wallet to a “brokerage account,” with the expectation that they will earn significant interest from their investment.
Victims are adding their crypto wallets to a fraudulent cryptocurrency trading pool, which the fraudsters then empty.
“When pig butchering first appeared during the time of the COVID pandemic, the technical aspects of the scams were still relatively primitive and required a lot of effort and guidance to successfully scam victims. Now, as the scams have become more successful and the fraudsters have refined their techniques, we’re seeing a similar evolution to what we’ve seen with ransomware and other types of cybercrime in the past: the creation of an as-a-service model. Pig butchering rings are creating ready-made DeFi app kits, which other cybercriminals can purchase on the dark web. As a result, new pig butchering rings that are unaffiliated with Chinese organized crime groups are appearing in areas like Thailand, West Africa and even the U.S.
As with other types of commercialized cybercrime, these kits lower the entry barriers for cybercriminals interested in pig butchering and vastly expand the victim pool. Last year, pig butchering was already a multi-billion-dollar fraud phenomenon; sadly, the problem is likely only to grow exponentially this year,” said Sean Gallagher, principal threat researcher, Sophos.
Sophos X-Ops has been tracking the evolution of pig butchering schemes for two years. The earliest iterations—dubbed by Sophos as “CryptoRom” scams—involved connecting with potential victims on dating apps and then convincing them to download fraudulent crypto trading applications from third-party sources. For iOS users, these scams required victims to download an elaborate workaround that allowed scammers to bypass security on victims’ devices and gain access to their wallets.
In 2022, the scammers continued to refine their operations, this time finding ways to bypass app store review processes to sneak their fraudulent apps into the legitimate App Store and Google Play Store. This was also the year that a new scam pattern emerged: fake cryptocurrency trading pools (liquidity mining).
In 2023, Sophos X-Ops uncovered two vast pig butchering rings—one based out of Hong Kong and one based out of Cambodia. These rings leveraged legitimate crypto trading apps and created elaborate fake personas to lure victims and steal millions from them. Further investigation revealed that pig butchering operators were adding AI to their arsenal.
At the end of 2023, Sophos X-Ops uncovered a vast liquidity mining operation involving three separate Chinese organized crime rings targeting nearly 100 victims. During the investigation into this operation, Sophos X-Ops first noticed the availability of pig butchering scam kits.
In the most recent pig butchering operations that Sophos X-Ops has investigated, the fraudsters have removed any previous technological impediments, as well as significantly lowered the amount of social engineering required to steal from victims. In the DeFi savings schemes, victims now engage in fraudulent crypto trading through legitimate, well-known cryptocurrency apps and give (albeit unknowingly) the scammers direct access to their wallets. In addition, the scammers can conceal the wallet network that launders stolen crypto, making the scams harder for law enforcement to track.
“The DeFi savings scams are the culmination of two years of pig butcherers refining their operations. Gone are the days when the scammers had to convince victims to download some strange app or transfer the crypto themselves into a soon-to-be-stolen digital wallet.
“The fraudsters have also learned how to better ‘market’ their schemes. They’re taking advantage of how liquidity mining pools operate to steal the funds by telling victims it’s a simple investment account. This is often an easier sell, especially since most people don’t understand the ins and outs of cryptocurrency trading and everything is done under the guise of trusted brands.
“In other words, it’s never been easier for people to fall victim to pig butchering, which means it’s never been more important to be aware that these scams exist—and know what to look out for,” said Gallagher.
Tips to Avoid Falling Prey to Pig Butchering
To avoid falling victim to a pig butchering scam, Sophos recommends the following:
· Be skeptical of strangers that reach out via social networking sites like Facebook or texts, especially if they want to quickly move the conversation to a private messenger like WhatsApp
o This also applies for new matches on dating applications—especially if the stranger begins talking about trading in crypto
· Always be weary of any “get rich quick” scheme or cryptocurrency investment opportunity that promises large returns in a short amount of time
· Be familiar with the lures and tactics of romance scams and investment scams. Non-profits like the Cybercrime Support Network have resources that can help
· Anyone who believes they have fallen victim to a pig butchering scam should immediately withdraw any funds from any affected wallet and contact law enforcement
Timeline of Sophos’ Two-Year Investigation into Pig Butchering
2021
· Sophos X-Ops spots the first “CryptoRom” fake trading apps targeting users in Asia
· Sophos X-Ops then discovers these scammers expanding their operations, targeting victims in the U.S. and Europe
2022
· Sophos X-Ops discovers more fake apps from CryptoRom scams, as well as a new workaround scammers are using so that victims can successfully download the fake apps on their iOS devices
· A new type of pig butchering scam emerges: liquidity mining
2023
· Sophos X-Ops uncovers the first fake apps for CryptoRom schemes found in the Apple App Store as scammers find ways to bypass the app store review process
· Sophos X-Ops uncovers two vast pig butchering rings operating out of Hong Kong and Cambodia. Rather than using fake apps, these scammers are now exploiting legitimate crypto trading applications, as well as building elaborate personas to hook their victims
· Sophos X-Ops finds more fake apps—and learns that pig butcherers are now adding generative AI to their toolkit
· The story of a man who lost $22,000 in a week to a pig butchering scheme leads Sophos X-Ops to a vast liquidity mining scam operation being run by three different Chinese organized crime rings
2024
· Sophos X-Ops uncovers the most technically sophisticated pig butchering scheme yet—“DeFi savings” scams. These schemes and other crypto-based scam operations are for sale as kits, leading to pig butchering rings popping up in new areas of the world
For more about the current DeFi savings schemes and the evolution of pig butchering in “Cryptocurrency Scams Metastasize into New Forms” go to Sophos.com.
Telecommunications operators in Nigeria are considering shifting from the current national tariff structure to a regional tariff regime that accounts for state-specific operational challenges.
They say this is because the challenges and costs of running their businesses vary significantly from state to state.
Currently, phone companies in Nigeria have a single national tariff for their services, meaning everyone pays the same amount no matter where they live.
However, the telcos argue that this system doesn’t account for the fact that some states have higher operating costs due to issues like attacks on their equipment and multiple taxes.
This proposal was discussed at the 7th edition of the Policy Implementation Assisted Forum (PIAFo) in Lagos, where industry leaders highlighted the need for a pricing model that reflects the ease—or difficulty—of doing business in each state.
Gbenga Adebayo, chairman, Association of Licensed Telecommunications Operators of Nigeria (ALTON), specifically pointed out that the high cost of doing business in some states is a major concern and increases their expenses. He suggested that if negotiating with certain states to reduce these costs is impossible, then the added expense of operating there should be reflected in the service prices in those areas.
“We may have to reconsider the issue of our national tariffs and look at regional tariffs. If you are aware that the cost of doing business is high in a particular state and it’s impossible to negotiate with them, factor the cost of deployment in those areas into the cost of providing services,” he said.
Tony Emoekpere, president, Association of Telecommunications Companies of Nigeria (ATCON), agreed that the current national tariff is unfair because operational costs are not the same across the country.
He believes that states that make it easier for telecom companies to operate should be rewarded, while those that create difficulties should see higher service costs.
9mobile, telecommunications operator, has described as untrue the rumors suggesting that it has shut down its operations.
according to the telcos, these claims are entirely baseless and aimed at causing unnecessary panic among our valued subscribers, the mobile operator said in a statement.
“We understand that some customers have recently faced challenges, particularly with Mobile Number Portability (MNP), a service that enables seamless network switching.
“We want to clarify that 9mobile has never restricted customers from porting to other networks. We remain fully compliant with industry regulations and committed to delivering fair, transparent, and customer-focused services.
“While there have been temporary technical challenges affecting MNP, these issues have now been largely resolved. Some minor delays may still occur due to ongoing system optimizations, but we are actively working to ensure a smoother experience for all users.
“As a proudly Nigerian brand, we embody the resilient spirit of our people and remain steadfast in our commitment to overcoming challenges. We acknowledge the temporary service disruptions some customers may have experienced in different locations.
“However, we assure you that these disruptions are part of a broader transformation effort aimed at modernizing our infrastructure and improving overall service quality.
“Our ongoing investments in network upgrades and service expansion will soon yield significant improvements, ensuring reliable connectivity for individuals, businesses, and communities.
“We sincerely appreciate the patience and loyalty of our subscribers during this transition. While challenges exist, we are making significant progress and are confident that brighter days are ahead. We remain dedicated to providing exceptional service and keeping you connected to limitless opportunities”.
Nigeria Data Protection Commission (NDPC) has initiated an investigation into the data processing practices of Tiktok and Truecaller, following growing concerns about potential privacy violations.
Dr. Vincent Olatunji, the Chief Executive Officer of the NDPC, made the announcement today during a press conference in Abuja, where he also revealed the issuance of the Nigeria Data Protection Act – General Application and implementation directive (NDPC Act – GAID), 2025.
Dr Olatunji stated that the commission’s primary concern is how these platforms manage Nigerian users’ personal data, including potential breaches of consent, data sharing with third parties, and overall compliance with the Nigeria Data Protection Act (NDPA), 2023. He confirmed that the NDPC is actively investigating Tiktok and Truecaller’s data processing activities to ensure they comply with Nigeria’s data protection laws.
“The goal is to safeguard the privacy rights of Nigerians and hold organizations accountable for how they collect, store, and use personal data,” he added.
This investigation comes amid increasing scrutiny of global tech companies regarding data privacy, especially concerning how personal information is processed, stored, and transmitted beyond national borders.
The NDPC act – GAID, 2025, issued today, provides a detailed framework for implementing Nigeria’s data protection law, outlining compliance guidelines, enforcement mechanisms, and obligations for both public and private organizations.
Dr Olatunji emphasized that the directive aims to strengthen Nigeria’s digital economy by fostering trust in data governance while ensuring individuals’ rights to privacy are respected in accordance with international best practices.
He reiterated that companies operating in Nigeria must comply with the country’s data protection regulations or face regulatory actions, including fines and potential restrictions.
The NDPC has urged the public to report any data privacy violations and reaffirmed its commitment to transparency and due process in its investigations.
The commission noted that reporting data breaches has become more accessible through dedicated channels on its official website.
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