CFTC Forms Alliances to Address Crypto "Pig Butchering" Scams
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 FraudAccording 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.”Crypto #investment or “relationship” scams are on the rise and @CFTC is releasing a prevention brochure in partnership with @ABABankers, @FBI, @FinCENnews, @FINRA, @HSI_HQ, @IRSnews, @SecretService, and @SEC_Investor_Ed. Learn more: https://t.co/Rc10CxD6An pic.twitter.com/W3SWNieJs3— CFTC (@CFTC) September 11, 2024In addition to the infographic, the CFTC is also working with the US Securities and Exchange Commission, the Financial Industry Regulatory Authority, and the North American Securities Administrators Association 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.Protecting Investors from "Pig Butchering" Scams 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.In the second quarter, the cryptocurrency industry faced heightened security incidents, with total losses reaching $629.7 million across 49 incidents. According to a Survey by blockchain security firm Cyvers, only 24% of stolen funds were recovered. Since the beginning of the year, cryptocurrency criminals have seized over $1.38 billion, most of which resulted from "access control breaches."Despite the amount recovered rising by 42% compared to the corresponding period last year, the recovered amount reportedly represents less than a quarter of the total losses. This means that barely one in four victims of digital asset hacks can recover their funds. This article was written by Jared Kirui at www.financemagnates.com.
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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.”
Crypto #investment or “relationship” scams are on the rise and @CFTC is releasing a prevention brochure in partnership with @ABABankers, @FBI, @FinCENnews, @FINRA, @HSI_HQ, @IRSnews, @SecretService, and @SEC_Investor_Ed. Learn more: https://t.co/Rc10CxD6An pic.twitter.com/W3SWNieJs3— CFTC (@CFTC) September 11, 2024
In addition to the infographic, the CFTC is also working with the US Securities and Exchange Commission, the Financial Industry Regulatory Authority, and the North American Securities Administrators Association 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.
Protecting Investors from "Pig Butchering" Scams
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.
In the second quarter, the cryptocurrency industry faced heightened security incidents, with total losses reaching $629.7 million across 49 incidents. According to a Survey by blockchain security firm Cyvers, only 24% of stolen funds were recovered. Since the beginning of the year, cryptocurrency criminals have seized over $1.38 billion, most of which resulted from "access control breaches."
Despite the amount recovered rising by 42% compared to the corresponding period last year, the recovered amount reportedly represents less than a quarter of the total losses. This means that barely one in four victims of digital asset hacks can recover their funds. This article was written by Jared Kirui at www.financemagnates.com.
