CFTC Joins Forces to Combat Crypto ‘Pig Butchering’ Scams

• CFTC, SEC, and other organizations combat pig butchering crypto scams exploiting emotional connections.
• New infographic helps consumers identify and avoid these fraudulent schemes.
• Investor alert warns even experienced individuals and encourages reporting suspicious activity.

The Commodity Futures Trading Commission (CFTC) is collaborating with several organizations, including the Securities and Exchange Commission (SEC), to address cryptocurrency scams known as “pig butchering.” These scams, which exploit emotional connections through deceptive romantic relationships, trick victims into investing in fake cryptocurrency ventures.

The CFTC’s Office of Customer Education and Outreach (OCEO) has partnered with the American Bankers Association Foundation, the FBI, and the IRS. 

This collaboration has resulted in an infographic designed to help consumers recognize and avoid pig butchering scams. These schemes involve scammers gaining victims’ trust through fake romances before convincing them to invest in fraudulent crypto ventures.

Melanie Devoe, Director of OCEO, emphasized the seriousness of these scams: “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.”

Additionally, the SEC, the Financial Industry Regulatory Authority (FINRA), and the North American Securities Administrators Association (NASAA) have issued an investor alert. 

This alert aims to educate all investors, including those who may consider themselves too experienced to fall for such scams. It provides detailed insights into the evolving tactics used by fraudsters.

The alert warns people not to reply to unexpected messages and asks them to report any suspicious activities. Victims should provide detailed reports to law enforcement to help with investigations and hold the criminals responsible.

Despite these efforts, scams still affect many people, including experienced investors. The CFTC and its partners highlight the need for careful attention and prompt reporting to fight the increasing threat of crypto-related fraud.