CFTC Launches Partnerships to Combat Cryptocurrency Investment Scams
Washington, D.C. — The Commodity Futures Trading Commission (CFTC) has announced two significant partnerships aimed at educating customers about cryptocurrency relationship investment scams. The Office of Customer Outreach and Education (OCEO) is committed to expanding its reach through collaborations with various organizations, ensuring that vital anti-fraud information reaches those who trust these partners.
Melanie Devoe, Director of OCEO, emphasized the importance of these partnerships: "By collaborating with federal and state regulators, consumer protection groups, and other organizations, we can effectively disseminate the CFTC’s educational message and potentially protect individuals from falling victim to scams. Our focus is on a type of fraud known as 'pig butchering,' which is estimated to cost Americans billions annually."
To combat this issue, OCEO is teaming up with the American Bankers Association Foundation, alongside federal agencies and private regulators, to distribute an informative infographic. This resource is designed to help consumers identify and avoid 'pig butchering' scams. The infographic outlines the various phases of the scam, from how victims are targeted and groomed to the eventual outcome, and it highlights warning signs and recommended actions for those who may have been victimized. View the infographic here.
Additionally, OCEO is collaborating with the U.S. Securities and Exchange Commission’s Office of Investor Education and Advocacy, the Financial Industry Regulatory Authority (FINRA), and the North American Securities Administrators Association to create an investor alert. This alert aims to provide a comprehensive understanding of how 'pig butchering' scammers manipulate unsuspecting individuals, particularly those who believe they are too savvy to be scammed. It encourages investors to be vigilant and to avoid responding to unsolicited messages from unknown sources.
If you or someone you know has fallen victim to cryptocurrency investment fraud, it is crucial to report the incident at www.IC3.gov. When filing a complaint, include as much detail as possible, such as names of investment platforms, cryptocurrency addresses, transaction hashes, and any relevant bank account information. Keeping records of all communications with scammers and financial transactions is also recommended.
About OCEO
The Office of Customer Education and Outreach (OCEO) is dedicated to empowering consumers to protect themselves against fraud and violations of the Commodity Exchange Act. Through the development of effective financial education materials and initiatives, OCEO engages in outreach to retail investors and frequently collaborates with federal and state regulators and consumer protection groups. For more resources, visit the CFTC’s full repository of customer education materials.