The U.S. Commodity Futures Trading Commission’s (CFTC) Office of Customer Information and Education (OCEO) aims to distribute targeted information through new collaborations to raise awareness about crypto investment scams.
According to a notice published by the CFTC, the American Bankers Association Foundation, a “special regulator,” and other federal agencies are collaborating with OCEO to develop an infographic to help identify and prevent scams. In addition, OCEO is working with the U.S. Securities and Exchange Commission’s (SEC) Office of Investor Education and Advocacy and other organizations to develop an investor alert about scams known as “pig butchering.”
“Partnering with federal and state regulators, consumer protection groups and other organizations helps the CFTC spread its consumer education message and reach people before they are scammed. These collaborations focus on relationship-based trust scams, which scammers refer to as ‘pig butchering.’ These scams are estimated to cost Americans billions of dollars each year,” said Melanie Devoe, director of the Office of Consumer Information and Education.
Crypto replaces pyramid schemes
Pig butchering scams have replaced pyramid schemes in the past year, becoming a way for criminals to make big profits through more targeted attacks. Brian McGleenon said the scams get their name from the scammers trying to maximise their profits by ‘pumping up’ their victims. These scams usually involve developing a romantic relationship over time via messaging or dating apps, before eventually conning the victim into a fake investment scheme.
Stay tuned for new information.
