CFTC's OCEO Announces Two Partnerships to Distribute Information on Cryptocurrency "Pig-Butchering" Scams

The U.S. Commodity Futures Trading Commission's (CFTC) Office of Customer Outreach and Education (OCEO) has announced two collaborative programs to provide customers with targeted information about cryptocurrency relationship investment scams.

“Partnering with federal and state regulators as well as consumer protection groups and other organizations helps spread the CFTC’s customer education message and hopefully reaches people before they can get scammed,” said OCEO Director Melanie Devoe. “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.”

The first partnership is with the American Bankers Association Foundation along with other federal agencies and a private regulator to distribute an infographic to help consumers recognize and avoid so-called “pig butchering” fraud.

The one-page infographic illustrates the scam’s phases—from how victims are targeted and groomed to how the scam ends — and provides warning signs and steps to take if a person has been victimized. 

source: CFTC

The second partnership is with the U.S. Security and Exchange Commission’s Office of Investor Education and Advocacy, the Financial Industry Regulatory Authority, and the North American Securities Administrators Association to develop and distribute an investor alert that gives customers a clear picture of how “pig butchering” scammers work their way into the minds and wallets of everyday, knowledgeable people. 

The alert targets individuals who think they would never fall for this type of scam by giving them an introspective on how these fraudsters have perfected their criminal craft to entice even the savviest investors. One way all investors can protect themselves is to stop the scam before it starts by not responding to unexpected or unsolicited text messages from unknown senders. Report them using the phone’s “report junk” option or by forwarding unwanted texts to 7726 (SPAM).