CFTC Teams up With SEC to Fight Cryptocurrency Scams
The Commodity Futures Trading Commission (CFTC) has partnered with several organizations, including the Securities and Exchange Commission (SEC), to educate the public about cryptocurrency scams, especially those involving fake romantic relationships. These partnerships aim to help consumers recognize and avoid these âpig butcheringâ scams, which defraud victims by building false trust and promoting fake cryptocurrency investments.
CFTC Forms Key Partnerships to Combat Cryptocurrency Scams
The Commodity Futures Trading Commission (CFTC) announced Wednesday that its Office of Customer Education and Outreach (OCEO) has formed two major partnerships to educate the public about cryptocurrency investment scams. These collaborations focus on raising awareness of relationship scams where fraudsters use romantic connections to defraud victims of their money.
The first partnership is with the American Bankers Association Foundation and several federal agencies, including the Federal Bureau of Investigation (FBI) and the Internal Revenue Service (IRS). Together, they have created an infographic that helps consumers recognize and avoid âpig butcheringâ scams. In these scams, fraudsters build trust through fake relationships, then convince victims to invest in fake cryptocurrency schemes. The infographic shows how the scam works, warning signs to watch for, and steps victims can take if targeted. Melanie Devoe, Director of OCEO, said:
These partnerships focus on a relationship confidence fraud the perpetrators commonly refer to as âpig butchering,â that is estimated to cost Americans billions each year.
The second partnership is with the U.S. Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and the North American Securities Administrators Association (NASAA). This group has developed an investor alert to warn consumers about how these scams operate, even targeting savvy investors. Describing the alert, the CFTC detailed:
It targets individuals who think they would never fall for this type of scam by giving them an introspective on how these fraudsters have perfected their criminal craft to entice even the savviest investors.
The alert advises individuals not to respond to unsolicited messages and encourages reporting suspicious texts. The CFTC also urges victims of such scams to report them to law enforcement, providing as much detail as possible to help in investigations.
What do you think about the CFTCâs efforts to combat cryptocurrency scams through partnerships and public education? Let us know in the comments section below. #Write2Earn