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CFTC warns about 'pig butchering' crypto scams

Sep 12, 2024
  1. CFTC's collaboration with other organizations
  2. Essence of 'pig butchering' scam
  3. Recommendations and protective measures

The United States Commodity Futures Trading Commission (CFTC) has partnered with a banking association and multiple federal regulators to warn consumers about 'pig butchering' crypto investment scams.

CFTC's collaboration with other organizations

The American Bankers Association Foundation, a private regulator, and other federal regulators, including the Securities and Exchange Commission (SEC), are now working with the CFTC’s Office of Customer Outreach and Education (OCEO) to spread an infographic showing how 'pig butchering' scams work.

Essence of 'pig butchering' scam

The scheme involves scammers using social media to contact victims and instigate fake romantic relationships to win their trust and lure them into fraudulent crypto investments. The infographic explains how victims are targeted, groomed, how scammers receive funds, and what to do if someone falls victim.

Recommendations and protective measures

The main advice is to stop the scam before it starts by simply not responding. Partnering with federal and state regulators as well as consumer protection groups helps spread the CFTC’s customer education message and hopefully prevents scams before they happen. The infographic provides recommendations on how to protect oneself from 'pig butchering'.

The joint efforts of the CFTC and other federal agencies aim to alert and protect against crypto scams. Staying vigilant and following protection recommendations is crucial.

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