Washington, D.C. – The Commodity Futures Trading Commission (CFTC) is spearheading a multi-agency effort to combat the growing threat of “pig butchering” cryptocurrency investment scams, estimated to cost Americans billions annually. The CFTC’s Office of Customer Education and Outreach (OCEO) announced partnerships with the American Bankers Association Foundation, the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and the North American Securities Administrators Association (NASAA) to raise awareness and provide resources to potential victims.
The collaborative initiative centers around distributing an infographic and an investor alert detailing the phases of a “pig butchering” scam. This type of fraud, a relationship-based confidence scheme, involves scammers cultivating relationships with victims online before convincing them to invest in fraudulent cryptocurrency platforms. The infographic illustrates the grooming process, warning signs, and steps to take if targeted. The investor alert aims to educate even experienced investors about the sophisticated tactics employed by these fraudsters.
“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,” stated Melanie Devoe, Director of OCEO. The partnerships extend to include the Federal Bureau of Investigations (FBI), the Internal Revenue Service (IRS), the Department of Homeland Security, the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), and the U.S. Secret Service.
The CFTC urges individuals to exercise caution with unsolicited messages and to report suspicious texts by using the “report junk” option on their phones or forwarding them to 7726 (SPAM). Victims of cryptocurrency investment fraud are encouraged to file a complaint with the FBI’s Internet Crime Complaint Center (IC3) at www.IC3.gov, providing detailed information such as platform names, cryptocurrency addresses, transaction hashes, bank account details, and contact information for suspected scammers. Maintaining records of all communications and financial transactions is also crucial.
The OCEO is dedicated to protecting investors from fraud and violations of the Commodity Exchange Act through educational materials and outreach programs. This latest initiative underscores the CFTC’s commitment to tackling the evolving landscape of cryptocurrency fraud and safeguarding consumers from financial harm.
Source: CFTC.gov
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