Commodity Futures Trading Commission (CFTC) has formed
partnerships with several organizations to raise awareness about cryptocurrency
relationship investment scams dubbed “pig
butchering.” The regulator’s Office of Customer Outreach and Education
(OCEO) is spearheading this initiative to educate and protect consumers from
falling victim to these complex fraud schemes.
Efforts to Fight Fraud
According to the official statement, the CFTC is teaming up with various organizations, including the American Bankers Association Foundation,
federal agencies, and private regulators. The collaboration focuses on
distributing a comprehensive infographic that outlines the “pig
butchering” scam. This visual guide details the various stages of the
scam, from initial contact to financial loss, and highlights key warning signs
for potential victims.
Speaking about the initiative, CFTC’s Office of
Customer Education and Outreach Director Melanie Devoe, mentioned: “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.”
“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.”
In addition to the infographic, the CFTC is also
working with the U.S. Securities and Exchange Commission (SEC), the Financial
Industry Regulatory Authority (FINRA), and the North American Securities
Administrators Association (NASAA) to create an investor alert. This alert is designed to educate investors
about the tactics scammers use to infiltrate even the most cautious
investors’ minds and wallets.
CFTC has urged investors to avoid responding to unsolicited messages from unknown sources,
a common tactic used by scammers. With these new partnerships and educational efforts,
the watchdog aims to significantly reduce the prevalence of “pig
butchering” scams and protect investors from financial harm.
Expect ongoing updates as this story evolves.
This article was written by Jared Kirui at www.financemagnates.com.
