Key Points
- The CFTC has partnered with federal agencies and private organizations to distribute targeted information about cryptocurrency relationship investment scams, particularly the “pig butchering” fraud.
- These scams are estimated to cost Americans billions of dollars annually, prompting a coordinated effort to educate and protect consumers through infographics and investor alerts.
CFTC Expands Outreach Efforts
The Commodity Futures Trading Commission (CFTC) has announced new partnerships aimed at combating a growing threat in the cryptocurrency space. On September 11, 2024, the CFTC’s Office of Customer Outreach and Education (OCEO) revealed collaborations with multiple organizations to disseminate information about cryptocurrency relationship investment scams, with a particular focus on the so-called “pig butchering” fraud.
Melanie Devoe, Director of the Office of Customer Education and Outreach, emphasized the importance of these partnerships: “Partnering with federal and state regulators as well as consumer protection groups and other organizations helps spread the CFTC’s customer education message and hopefully reaches people before they can get scammed.”
Infographic Partnership Targets Consumer Awareness
In a significant move, the OCEO has joined forces with the American Bankers Association Foundation and other federal agencies to create and distribute an infographic. This visual aid is designed to help consumers recognize and avoid “pig butchering” fraud, a type of scam that has become increasingly prevalent in recent years.
The infographic provides a comprehensive overview of the scam’s phases, illustrating how victims are targeted and groomed, and ultimately how the fraud concludes. It also offers valuable information on warning signs and steps to take if someone falls victim to such a scam.
Multi-Agency Collaboration on Investor Alert
In a parallel effort, the CFTC is collaborating with the U.S. Securities and Exchange Commission’s Office of Investor Education and Advocacy, the Financial Industry Regulatory Authority, and the North American Securities Administrators Association. This partnership aims to develop and distribute an investor alert that provides a detailed look into the tactics employed by “pig butchering” scammers.
The alert is specifically tailored to reach individuals who may believe they are too savvy to fall for such scams. By offering an introspective view of how these fraudsters have refined their techniques, the agencies hope to protect even the most knowledgeable investors.
Preventive Measures and Reporting
The CFTC and its partners are emphasizing prevention as the best defense against these sophisticated scams. They advise investors to be wary of unsolicited messages from unknown senders and provide guidance on reporting suspicious communications.
Consumers are encouraged to use their phone’s “report junk” option or forward unwanted texts to 7726 (SPAM) to help combat these fraudulent activities.
