- The CFTC partners with federal regulators and a banking association to combat “pig butchering” crypto scams.
- An infographic created with the American Bankers Association Foundation educates consumers on how these scams operate.
- Investors are urged to avoid unsolicited messages and report suspicious communications to prevent fraud.
The United States Commodity Futures Trading Commission (CFTC) has joined forces with a prominent banking association and multiple federal regulators to combat a rising wave of crypto-related scams, commonly referred to as “pig butchering.” This scam, a particularly insidious form of fraud, has been steadily draining billions from American consumers.
Strategic Partnerships for Crypto Consumer Protection
According to a recent press release, the CFTC’s Office of Customer Outreach and Education (OCEO) has launched two strategic partnerships aimed at providing consumers with targeted information about these deceptive cryptocurrency investment schemes.
These partnerships are a core component of the OCEO’s broader efforts to extend its anti-fraud messaging to wider audiences, including individuals who place their trust in organizations with strong consumer relationships.
Melanie Devoe, Director of the OCEO, emphasized the significance of collaboration in curbing the spread of these scams. “By partnering with federal and state regulators, consumer protection groups, and other organizations, we hope to reach people before they fall victim to scams,” said Devoe.
She further elaborated on the impact of “pig butchering” scams, which are described as relationship-based frauds that have bilked Americans out of billions of dollars annually.
One of the key initiatives in this campaign involves OCEO’s partnership with the American Bankers Association Foundation. Together with federal agencies and a private regulator, they have developed an infographic that provides a clear breakdown of the scam’s phases.
This easy-to-understand resource aims to educate consumers on how these scams unfold—from the initial targeting and grooming of victims to the devastating financial losses that follow. The infographic also offers practical tips on how to avoid falling prey to such schemes.
Additionally, the CFTC has teamed up with the U.S. Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and the North American Securities Administrators Association to create an investor alert. This alert specifically addresses how fraudsters, using increasingly sophisticated tactics, can deceive even experienced and knowledgeable investors.
However, according to the CFTC, the key takeaway for all investors is to avoid engaging with unsolicited messages and be vigilant about reporting suspicious communications. Consumers are encouraged to utilize the “report junk” feature on their phones or forward unwanted texts to 7726 (SPAM) to help prevent these scams from spreading.
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