The Commodity Futures Trading Commission (CFTC) has joined forces with various organizations, including the Securities and Exchange Commission (SEC), to raise awareness about cryptocurrency scams, particularly those tied to fraudulent romantic relationships called pig butchering.
Through these partnerships, the goal is to equip the public with the knowledge to identify and steer clear of pig butchering schemes, where scammers build deceptive trust and lure victims into bogus crypto investments.
CFTC Joins Forces to Combat Crypto ‘Pig Butchering’ Scams
The Commodity Futures Trading Commission (CFTC) announced that its Office of Customer Education and Outreach (OCEO) has established two significant partnerships aimed at educating the public on cryptocurrency investment scams. These efforts focus on raising awareness about romance scams, where fraudsters exploit emotional connections to deceive victims and steal their money.
One of the CFTC key partnerships is with the American Bankers Association Foundation, alongside federal agencies such as the Federal Bureau of Investigation (FBI) and the Internal Revenue Service (IRS). Together, they have developed an infographic to help consumers identify and avoid pig butchering scams. In these schemes, scammers gain victims’ trust through fake romantic relationships and then persuade them to invest in fraudulent cryptocurrency ventures.
According to Melanie Devoe, Director of OCEO:
“These partnerships focus on a relationship confidence fraud the perpetrators commonly refer to as ‘pig butchering,’ that is estimated to cost Americans billions each year.”
Urging Vigilance and Reporting as Crypto Scams Target All Investors
The second partnership involves the SEC, the Financial Industry Regulatory Authority (FINRA), and the North American Securities Administrators Association (NASAA).
This group has issued an investor alert aimed at educating consumers on how these scams work, with a focus on warning even experienced investors. The CFTC explained that the pig butchering alert is designed for those who might believe they are too savvy to fall for such schemes, offering insight into how fraudsters have refined their tactics to deceive even the most cautious individuals.
The alert advises people to ignore unsolicited messages and report any suspicious activity. The CFTC also encourages victims to provide detailed information when reporting these scams to law enforcement, helping to assist in investigations and bring the perpetrators to justice.
Just recently, Binance has issued a caution regarding a current malware threat that alters cryptocurrency withdrawal addresses, presenting serious financial risks to users. The exchange has noted a rise in these malicious activities and is taking strong measures to protect user transactions.
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