Economist Podcasts: Scam Inc 1 – Pigs in a Barrel

Date: February 8, 2025
Host/Reporter: Su Lin Wong

Overview

The first episode of "Scam Inc." investigates the astonishing collapse of a rural American bank, Heartland Tri State Bank in Kansas, after its CEO is ensnared by a sophisticated internet scam. Reporter Su Lin Wong uses this true crime to launch a global exploration of "pig butchering" scams—elaborate, emotionally manipulative operations that now siphon billions each year from individuals and institutions alike. The series promises to follow the money, uncover scammers’ methods, and tell the victims’ human stories.

Key Discussion Points and Insights

1. The Collapse of a Small-Town Bank

[02:31 – 11:33]

• Setting the Scene:
  Jim Tucker, a Kansas farmer, describes his quiet life and the sense of safety in rural America.

  “You feel safe. You feel isolated from the rest of the world… There’s no place I’d rather be than Morton County, Kansas.” — Jim Tucker (03:06)

• Discovery of Missing Money:
  In July 2023, the board learns that $47.1 million has been transferred out of Heartland Tri State Bank—about a third of its assets—by CEO Shane Haynes.

  “On May 30, just over a month prior to, $1.5 million had been discreetly transferred to a cryptocurrency exchange called Kraken. The next day, another 1.5 million followed it… In total, $47.1 million had vanished." — Su Lin Wong (04:52)

• Shane’s Explanation:
  Haynes tells the board the money is locked up in overseas crypto investments—claiming more is needed to recover it, eerily echoing the escalation typical of scam victims.

  “Shane, he was telling us we needed $19 million more.” — Karina (08:03)
  “Shane Haynes leaned across the table and said, ‘David, I’ve already bet it for you.’” — Jim Tucker (09:15)

• Bank Collapse and Aftermath:
  Regulators descend, the bank’s charter is dissolved, and local shareholders—farmers, veterans, widows—lose millions.

  “Maybe as one of the worst things I’ve ever had to do, but I had to point to the line to some documents where my 92-year-old dad had to sign to agree to dissolve the charter of the bank that they created in 1984.” — Jim Tucker (09:51)

2. The Pig Butchering Scam Explored

[13:33 – 17:16]

• What Is Pig Butchering?
  Su Lin Wong introduces the term, originally from China. It refers to scammers cultivating trust and attachment in a victim (“fattening the pig”), before stealing everything.

  “Pig butchering refers to fattening up a target like a farm animal, feeding them, tending to them before they’re finally slaughtered, which means taken for everything they have.” — Su Lin Wong (15:53)

• Staggering Scale:
  The FBI estimates Americans lost billions to pig butchering scams in 2023 alone; the true number may be tens of billions, a scale rivaling the entire global business of a company like McDonald’s.

3. A Victim’s Story—Karina’s Ordeal

[21:29 – 40:03]

• Background:
  Karina, a well-educated California biotech professional, describes meeting “Evan” on Bumble after a breakup.

  “He was an incredibly attractive man…I was surprised that he was interested in me.” — Karina (22:55)

• Grooming and Manipulation:
  Evan provides constant emotional attention, showers Karina with flattery and affection, and skillfully establishes trust before introducing the idea of trading crypto.

• Escalating Investments:
  Following Evan’s advice, Karina invests small sums in what she believes is Kraken Futures, then borrows tens of thousands from her retirement, friends, and family under mounting pressure.

  “[Evan] said, ‘Why don’t you borrow from your retirement? You’ll pay it back because you’re going to make all the money back in trading anyway.’” — Karina (31:24)

• The Trap Tightens:
  When she tries to withdraw, she’s hit with fabricated security requirements and fees, forcing her to borrow even more. The scammer then flips the script, emotionally manipulating her by playing the victim.

• Betrayal and Realization:
  At her stepfather’s urging, Karina contacts the real Kraken, only to learn she’d used a fraudulent website.

  “I called Kraken Futures and talked to the person on the phone. They could not find an account for me…He said, ‘I think you’ve been scammed.’ And I lost it.” — Karina (35:18)

• Aftermath:
  Karina loses $152,000 and has to move back in with her mother. She reports the scam to authorities but gets no meaningful help, so she learns to track crypto transactions herself. Ultimately, she’s left with emotional scars and ongoing debt.

• Impactful Moment:

  “I did go through a state where I thought that just disappearing or ending my life would have been easier than telling people what happened…” — Karina (38:08)

4. Broader Patterns — Anyone Can Be a Victim

[40:10 – 42:32]

• Who Are the Victims?
  Su Lin Wong highlights that pig butchering scams target all kinds of people, including tech workers, advisors, police officers, and CEOs like Shane Haynes.

• Edgar’s Story:
  Edgar, a Canadian software professional, is ensnared by a LinkedIn contact who befriends him and introduces him to fake crypto investing. He loses $78,000 before realizing the truth.

  “It really made me realize the rush and the feelings that people are having whenever they are betting…because it’s something similar that was created here…” — Edgar (42:09)

Notable Quotes and Memorable Moments

• Boardroom Reckoning:

  “Shane Haynes leaned across the table and said, ‘David, I’ve already bet it for you.’” — Jim Tucker (09:15)
  A chilling moment, capturing both the delusion of scam victims and the stakes for small rural communities.

• On Emotional Manipulation:

  “I loved the affection…it was sweet…nobody I had ever dated before spent that much time trying to get to know me or even as intensely.” — Karina (24:44)

• Aftermath and Shame:

  “It felt like I had failed at life big time. Sorry. I actually didn’t think I was gonna get emotional.” — Karina (36:50)

• Comparing Victims’ Experiences:

  “Who has the time, the resources, and the cruelty to do something like this?” — Jim Tucker (40:10)

Timestamps for Important Segments

• Kansas Bank Case Introduction: 02:31
• Discovery of Missing Funds: 04:52
• Board’s Reaction & Shane’s Response: 06:01 – 09:15
• Collapse of Heartland Tri State Bank: 09:51 – 11:33
• Introduction & Explanation of Pig Butchering: 15:38 – 17:16
• Karina’s Story Begins: 21:29
• Flirtation, Grooming, and Crypto Investments: 22:44 – 34:09
• Recognition of the Scam: 35:18
• Karina’s Aftermath and Self-Investigation: 36:00 – 39:07
• Edgar’s Story & Broader Victim Profile: 40:47 – 42:32

Episode Tone and Language

Su Lin Wong’s reporting combines empathy for victims with investigative clarity, while guests candidly share doubt, shame, and heartbreak. The episode blends the personal (“felt like I had failed at life”) with systemic analysis (“scamming in America alone an industry roughly the same size as…McDonald’s”). The tone is direct, urgent, and sometimes quietly devastating.

Conclusion

Scam Inc. Episode 1 uses the dramatic collapse of a small-town Midwest bank and searing personal stories to introduce the global crisis of pig butchering scams. By exposing how even professionals and community leaders can be manipulated, the podcast sets out to unravel the dark networks exploiting modern technology and emotion on an industrial scale.

Next episode will probe into: Who are these scammers?