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.
Quest Merchant Bank has been appointed as Transaction Advisor for Project BRIDGE, a broadband infrastructure initiative of the Federal Ministry of Communications, Innovation and Digital Economy (FMCIDE), led by Bosun Tijani, the minister.
Project BRIDGE, short for Broadband Infrastructure Development for Digital Economy, is designed to deepen Nigeria’s digital backbone through the deployment of about 90,000 kilometres of open-access fibre-optic cables nationwide.
The initiative is expected to boost broadband penetration, strengthen connectivity and drive inclusive economic growth.
Under the mandate, Quest Merchant Bank will work with the ministry and the Project Implementation Unit to structure the project’s financial and commercial framework.
This includes developing bankable investment models, engaging investors and designing a public-private partnership structure to ensure efficient execution and sustainability.
Afolabi Olorode, acting managing director, described the project as a critical intervention for Nigeria’s digital economy.
“Project BRIDGE represents a critical step in strengthening Nigeria’s digital backbone and unlocking the immense opportunities within the country’s digital economy. We are honoured to partner with the FMCIDE under the leadership of Honourable Minister, Dr Bosun Tijani on this important initiative,” he said.
He added that the bank would leverage its expertise in infrastructure finance to develop “a robust and investable framework that will attract private capital and support long-term national development.”
Also speaking, Yetunde Falore, head of Investment Banking at Quest Merchant Bank, said the project comes at a defining moment for Nigeria’s digital economy.
“Nigeria’s digital economy is entering a defining phase, and infrastructure initiatives such as Project BRIDGE will play a central role in expanding connectivity, deepening digital inclusion, and supporting sustainable economic growth,” she stated.
Falore noted that the bank would focus on ensuring the timely and efficient delivery of the project in its advisory role.
The initiative aligns with the Renewed Hope agenda of President Bola Ahmed Tinubu, which prioritises digital infrastructure expansion and private sector participation in critical national assets.
Kenya’s High Court has ruled that mobile phone numbers are not disposable assets, but constitutionally protected digital identifiers, striking at the core of a long-standing industry practice of arbitrarily reassigning inactive SIM cards without the owners’ consent.
In a landmark decision that could reshape telecom regulation and digital identity frameworks across Africa, sitting at Milimani Law Courts in Nairobi, Justice Lawrence Mugambi declared that reassigning a phone number without the original owner’s consent violates the right to privacy.
The ruling effectively elevates a SIM card into the same legal category as personal data tied to an individual’s private life.
At the heart of the ruling is Article 31 of the Constitution, which safeguards citizens from unnecessary disclosure of private information and interference with communications.
The court found that in today’s digital economy, a registered mobile number functions as a critical gateway to sensitive personal data, linking users to mobile money platforms like M-PESA, banking systems, email accounts, and social media profiles.
“When mobile digital identity is lost through reallocation or recycling without interrogating the reasons behind inactivity, it creates an avenue for unauthorised disclosure of delicate information,” the judgment stated.
The case, brought by Erastus Ngura Odhiambo, petitioner and former prisoner, challenged the routine telecoms practice of deactivating SIM cards after prolonged inactivity and reassigning them to new users.
Odhiambo lost access to his mobile phone number due to inactivity while serving his lengthy sentence.
He argued that the practice exposes individuals to serious risks, including misdirected financial transactions, intercepted one-time passwords, and unintended access to private communications.
The court agreed, highlighting how recycled numbers can result in strangers receiving confidential messages, authentication codes, and even being added to private messaging groups, effectively inheriting fragments of another person’s digital life.
Justice Mugambi also criticised the rigidity of SIM deactivation policies, calling them “arbitrary” for failing to consider legitimate reasons for inactivity such as incarceration, studying in restricted environments, or living abroad.
“Incarceration does not strip an individual of their constitutional rights to privacy and identity,” he noted.
For telecom operators, including Safaricom, the ruling introduces a significant compliance burden. The court outlined three strict conditions before any number can be reassigned.
Telcos must obtain informed and verifiable consent from the original owner, issue a public notice and conduct traceability efforts over a reasonable period.
More importantly, the court further directed that telecoms firms must implement technical safeguards to prevent data exposure to the new user.
The Office of the Attorney General has been given six months to translate these directives into enforceable regulations.
Binance Earn offers cryptocurrency users an accessible way to generate rewards on idle digital assets without active trading or constant market monitoring.
Binance Earn
As the crypto market matures, more holders seek productive uses for their assets rather than leaving them dormant in wallets. Binance addresses this through Binance Earn, where users allocate supported cryptocurrencies to various reward products for automatic yield generation.
The platform emphasises simplicity with a “set-and-forget” model: users select assets, pick a product, and rewards accrue passively in the background. This appeals especially to long-term holders aiming to enhance portfolio value over time without day-to-day involvement.
Binance Earn provides flexible options for instant liquidity access alongside fixed-term products for defined commitments, catering to diverse strategies and risk appetites.
“We’re seeing growing interest across Africa in ways to make crypto holdings more productive without active trading,” said Larry Cooke, Africa Head of Legal at Binance. “Simple, ‘set-and-forget’ solutions are becoming increasingly relevant as more users take a longer-term approach to digital assets.”
The feature reflects shifting user behaviour towards holding and gradual growth amid volatile markets, where reward rates fluctuate based on conditions, liquidity, and structures.
Users must assess risks and alignment with personal goals, as crypto remains volatile. Binance Earn positions itself as a key tool in Africa’s rising digital asset adoption, enabling hands-off participation in the ecosystem.
Tech Firms Sack over 45,000 so Far in 2026
CBN Wins Central Bank of the Year Title @13th Global Awards
Jury Finds Elon Musk Liable for Misleading Twitter Investors
FG Taps Quest Merchant Bank for Advisory on 90,000km Fibre Project
TEF-Backed Entrepreneurs Generate $4.2Bn, Create 1.5m Jobs across Africa
Kaspersky Discovers New Phishing Campaign Exploiting Google Tasks Notifications to Steal Corporate Credentials
esentry 2025 Report Shows Healthcare, Financial Services and Telecoms as Staging Grounds for Increased Cyberattacks in Africa
AfDB, UNDP Launch $10Bn AI Initiative for Africa
MultiChoice Suspends Yearly DStv Price Hike as Canal+ Pushes Growth
MTN Nigeria Posts Record N1.70 Trillion Pre‑Tax Profit, Declares N20 Dividend for 2025
News3 days agoAfrican Tech Start-ups to Receive $46m of Speedinvest Africa Fund
Telecom3 days agoCourt Bans Kenyan Telcos from Recycling SIM Cards
E-Financial3 days agoProvidus Bank Fully Meets CBN Capital Requirement, Sets Record Straight
E-Financial3 days agoUBA UK, BII Sign Letter of Intent to Slash Africa’s $80Bn Trade Finance Gap
Telecom3 days agoBinance Earn: Simple Way to Earn Rewards on Idle Crypto Holdings
News3 days agoUK, Nigeria Unveil Three-Year Plan to Combat Immigration Crime
News3 days agoU.S. Charges Three in $2.5 Billion Plot to Smuggle Nvidia AI Chips to China
General News3 days agoCourt Jails ‘Colonel’, ‘Major’ of Global Money-Laundering Ring