New York, Saturday, September 14, 2024- The Commodity Futures Trading Commission (CFTC) has announced new partnerships aimed at tackling the growing issue of “pig butchering” scams within the cryptocurrency space. This type of scam, which has increasingly replaced traditional Ponzi schemes, involves fraudsters cultivating deceptive romantic relationships with victims to persuade them to invest in fake schemes.
The CFTC’s Office of Customer Outreach and Education (OCEO) is collaborating with several organizations, including the American Bankers Association Foundation and other federal agencies, to enhance public awareness of these scams.
The initiative will include the creation and distribution of an infographic designed to help individuals identify and avoid pig butchering schemes. Additionally, the OCEO is working with the U.S. Securities and Exchange Commission’s Office of Investor Education and Advocacy to develop a comprehensive investor alert on the subject.
The OCEO, emphasized the importance of these partnerships in spreading the CFTC’s educational message.
It said that partnering with federal and state regulators as well as consumer protection groups helps reach people before they fall victim to these scams.
The term “pig butchering” refers to scammers “fattening up” their victims through prolonged, fake romantic interactions before leading them to invest in fraudulent ventures.
This coordinated effort comes as pig butchering scams have seen a rise in the past year, with criminals seeking higher rewards from increasingly targeted attacks.
