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Sophos Uncovers How Criminals are Leveraging “As-a-Service” Business Model with Sha Zhu Pan Kits to Expand Cryptocurrency Fraud

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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.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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NCC Pledges Executive Support, Policy Incentives for Local Device Manufacturing

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Nigerian government has opened a high-stakes window of opportunity for international tech investors, offering direct presidential intervention and sweeping economic waivers for hardware companies that anchor their manufacturing hubs in Nigeria by November 2026.

NCC Pledges Executive Support, Policy Incentives for Local Device Manufacturing

Chief Idris Ibikunle Olorunnimbe

Chief Idris Ibikunle Olorunnimbe, the Chairman of the Governing Board of the Nigerian Communications Commission (NCC), made this groundbreaking declaration during his ministerial-level address at the Digital Africa Summit Roundtable in Shanghai.

Highlighting the government’s total dedication to backing these new factories, Olorunnimbe stated: “Whatever it takes to get the plant standing, we will pursue it together, because every factory that rises in Nigeria grows our economy, employs our young people, and brings the price of a phone closer to what an ordinary Nigerian can pay”.

The offer is designed to stimulate immediate foreign direct investment and create sustainable employment for Nigeria’s teeming youth population.

The economic logic underwriting this regulatory ultimatum is both practical and urgent. Currently, the Nigerian telecommunications ecosystem is highly vulnerable to external economic shocks, with foreign-exchange swings and import duties constantly pushing genuine, formal devices out of reach for average citizens.

By localising the supply chain, the NCC seeks to anchor device pricing to the local currency, stripping away the pricing volatility tied to the US Dollar.

Olorunnimbe candidly stated that the administration is ready to deploy massive executive support, viewing connectivity infrastructure as the central engine of President Tinubu’s Renewed Hope agenda, which treats “connectivity as productive infrastructure for the whole economy rather than a luxury for a few”.

This infrastructural push is designed to directly fuel the NCC’s highly praised initiative to transition Nigeria into an era of digital free education through the zero-rating of educational portals.

Drawing inspiration from classic free education philosophies, Olorunnimbe has previously stated that asking a child to buy data to look at a textbook is the modern equivalent of charging tuition at the gates of a public school.

To operationalise this vision, the proposed locally assembled smartphones, MiFi units, and home routers will come pre-configured with embedded access to these zero-rated educational platforms. This ensures that digital literacy tools are structurally hardwired into the technology from the factory floor.

Additionally, these indigenous devices will come pre-installed with core government application portals, simplifying access to digital identity verifications, public health services, and agricultural extensions. By embedding these essential state services directly onto affordable, locally produced hardware, the NCC is solving the double dilemma of device cost and data expenses simultaneously.

This holistic blueprint bridges the digital divide and accelerates financial inclusion, as verifiable identity frameworks, like the NIN and BVN, will allow citizens to seamlessly transition into credit-linked device-financing schemes. Olorunnimbe noted that by pairing “verifiable identity with credit history and secure device technology, then the phone itself becomes the on-ramp: to a credit record, and then to the wider financial system”.

The visionary posturing of Chief Olorunnimbe and the executive leadership of the NCC mark a paradigm shift in how government agencies foster industrial growth. Rather than relying solely on traditional, rigid enforcement against informal markets, the Commission is actively building a structured, credible marketplace via policy incentives and strategic executive support.

Through this aggressive, forward-looking roadmap, the NCC is firmly establishing Nigeria as the digital powerhouse of the African continent, demonstrating that true digital inclusion is achieved when national infrastructure serves human development.


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Tinubu Signs New NIMC Act to Strengthen Digital Identity, Data Protection

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President Bola Tinubu has assented to the National Identity Management Commission (NIMC) Act, 2026, replacing the 2007 law with a new legal framework aimed at strengthening Nigeria’s digital identity system, data protection and electronic trust services.

Tinubu signs new NIMC Act to strengthen digital identity, data protection

The new Act is expected to enhance the country’s digital identity ecosystem by improving identity management, securing personal data and promoting interoperability across government and private sector platforms.

According to a statement, the legislation aligns Nigeria’s identity management framework with the provisions of the Nigeria Data Protection Act (NDPA) and international best practices on privacy and data protection.

The Act introduces stronger safeguards for the collection, processing, storage and protection of citizens’ personal information.

It also designates the National Identity Management Commission as Nigeria’s root certification authority for the National Public Key Infrastructure (PKI) and Digital Public Infrastructure (DPI).

The designation empowers the commission to provide secure digital identity, authentication and electronic trust services across the country.

The Act further authorises NIMC to facilitate secure and interoperable data exchange among Ministries, Departments and Agencies (MDAs), private organisations and other authorised entities.

It also provides for the deployment of the NIMC General Multipurpose Card as a unified identity credential for nationwide identity verification under the initiative tagged “One Card, Multiple Possibilities.”

The Federal Government said the implementation of the law would create a trusted, secure and interoperable digital identity ecosystem capable of improving access to services in both the public and private sectors.

It added that Nigerians, including those living in the diaspora, would benefit from easier access to identity services, stronger protection of personal data, enhanced cybersecurity and more secure digital transactions.

The government also said the law would provide a stronger foundation for digital governance, economic growth and long-term national development by enabling faster and more reliable identity verification and authentication processes.


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Meta, FG Unveil New Safety Measures to Protect Nigerian Teens Online

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Meta on Thursday convened the Nigeria Youth Safety Summit in Abuja, bringing together government officials, civil society organisations, parents, educators, content creators and youth leaders to strengthen collaboration on digital wellbeing and safer online experiences for young people.

L-R: Sylvia Musalagani, Head of Safety Policy, Europe, Middle East and Africa (EMEA), Meta; Ayodele Olawande, Honourable Minister of Youth Development; Sade Dada, Head of Public Policy, Anglophone West Africa, Meta; and Ahmed Yusuf Tanbuwal, Ag Director, Digital Literacy and Capacity Building Department, National Information Technology Development Agency (NITDA), during the Nigeria Youth Safety Summit organised by Meta on Thursday, June 25, 2026, in Abuja.

The summit, held at the Transcorp Hilton Hotel and co-hosted with the Federal Ministry of Youth Development, highlighted Meta’s investments in youth online safety through built-in protections, parental supervision tools and digital literacy resources aimed at helping teenagers navigate the digital space safely.

The event featured keynote presentations, panel discussions and a Parents Learn and Brunch session organised in partnership with the Federal Ministry of Women Affairs and Social Development.

Participants explored practical approaches to promoting safer online engagement while emphasising the importance of partnerships among government, technology companies, parents, schools and civil society in advancing digital wellbeing.

Speaking at the summit, Meta’s Head of Safety Policy for Europe, the Middle East and Africa (EMEA), Sylvia Musalagani, said the company remained committed to providing teenagers with age-appropriate and safe online experiences.

“At Meta, our goal is to provide teens with safe, age-appropriate online experiences, and events like the Nigeria Youth Safety Summit reflect our commitment to promoting safer and more positive digital experiences for teens.

“With products such as Teen Accounts, Meta is putting the right protections in place so teens can explore their interests and express their creativity in a safe, age-appropriate space.

“We will continue to build the safety features and tools that families need to support young people online,” she said.

Musalagani explained that Teen Accounts represent a redesigned experience across Meta’s platforms specifically for teenagers.

She said the accounts are automatically enabled for all teenagers and include built-in safety features such as private accounts, the strictest messaging settings, restrictions on sensitive content, limited tagging and mentions to people they follow, daily time reminders after 60 minutes of use, and sleep mode between 10 p.m. and 7 a.m.

According to her, teenagers under the age of 16 require parental approval before making any changes that would reduce the default safety settings.

The Minister of Women Affairs and Social Development, Hajiya Imaan Sulaiman-Ibrahim, described child online safety as one of the ministry’s key priorities.

She said children require informed parental guidance to safely navigate the digital environment, stressing that online safety is a shared responsibility involving parents, technology companies and government.

“Child online safety is one of our central pillars and we are steadfast in our mandate to safeguard the Nigerian child from technology-enabled violence.

“Children cannot navigate the complexities of the online world without informed adults guiding them because safety begins with the parents.

“Safety is a shared tripartite responsibility between parents, technological industries and government.

“That is the fundamental premise of today’s summit, a hands-on walk through of parental supervision tools and Teen Accounts.

“We appreciate Meta for the collaboration and for creating a platform for these important conversations,” she said.

Meta also highlighted its parental supervision tools, which allow parents to receive notifications when teenagers report content, gain insights into who they communicate with, set daily usage limits, schedule breaks and monitor age-appropriate content interests.

The Minister of Youth Development, Ayodele Olawande, commended Meta for the initiative and noted its alignment with the ministry’s National Youth Data Protection and Awareness Training Programme.

“I want to thank Meta for this great achievement.

“At the ministry, one of the things we provide to all Nigerians is the skills to succeed in this digital world while making sure we protect them against emerging threats.

“We see a strong connection between the objectives of this summit and the goals of our National Youth Data Protection and Awareness Training Programme.

“We believe that keeping young people safe online is a shared responsibility.

“Government, technology companies, schools, parents, social organisations, community groups and young people themselves all have a role to play.

“We encourage Meta to make the tools, guides and learning materials from this initiative more widely available so that young people across Nigeria can continue to benefit from this laudable summit,” he said.

The summit concluded with discussions focused on strengthening partnerships, promoting digital literacy and advancing a shared vision for youth online safety across Nigeria.


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