The CFTC has partnered with federal agencies and the American Bankers Association to warn consumers about a new form of crypto scam known as 'pig butchering'.
What is 'Pig Butchering'?
These scams trick people into fake romantic relationships through social media, eventually luring them into fraudulent crypto investments. Victims, believing they are making smart investments, end up losing significant amounts of money.
CFTC and Other Agencies' Role
To raise awareness, the CFTC’s Office of Customer Outreach and Education has released an infographic that explains how these scams work and offers tips on avoiding them. The infographic highlights how scammers target individuals, build trust, and steal funds, urging people to avoid engaging with unknown contacts online.
Statistics and Implications
The FBI recently reported a staggering $5.6 billion in crypto-related fraud in 2023, with $215 million lost to romance scams alone. Additionally, the Federal Trade Commission has warned that scammers are increasingly using crypto ATMs to steal money, with over $110 million lost through this tactic last year.
By partnering with various organizations, the CFTC hopes to educate the public and prevent more people from falling victim to these schemes.
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