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, particularly those involving fake romantic relationships. These partnerships aim to help consumers recognize and avoid these “pig-killing” scams, which defraud victims by building false trust and promoting fake cryptocurrency investments.
CFTC Forms Key Partnership 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, in which scammers use romantic relationships 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 to help consumers recognize and avoid “pig killing” 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, the warning signs to look for, and steps victims can take if targeted. Melanie Devoe, Director of OCEO, said:
These partnerships focus on a type of trust fraud known to criminals as 'pig-slaughtering', which is estimated to cost Americans billions of dollars 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). The group has developed an investor alert to warn consumers about how these scams operate, even targeting savvy investors. Describing the alert, the CFTC details:
It targets individuals who think they would never fall for this type of scam by giving them an insight into how these scammers perfect their criminal tactics to lure in even the smartest investors.
The warning advises people not to respond to unsolicited messages and encourages reporting suspicious messages. The CFTC also urges victims of such scams to report them to law enforcement, providing as much detail as possible to aid in the investigation.
What do you think of the CFTC’s efforts to combat cryptocurrency scams through partnerships and public education? Let us know in the comments below.
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