The U.S. Commodity Futures Trading Commission (CFTC) has partnered with federal agencies and the American Bankers Association to warn consumers about “pig butchering” crypto scams.
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.
To raise awareness, the CFTC’s Office of Customer Outreach and Education has released a one-page infographic that explains how these scams work and offers tips on avoiding them. It highlights how scammers target individuals, build trust, and steal funds, urging people to avoid engaging with unknown contacts online.
Office of Customer Education and Outreach Director Melanie Devoe, said, “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.”
Melanie Devoe, director of the OCEO, emphasized the importance of stopping the scam before it begins, advising people not to respond to suspicious messages. The infographic is also being shared by other federal agencies, including the SEC and FBI.
Criminals have shifted to pig butchering scams, surpassing Ponzi schemes with more targeted attacks for higher rewards as this trend has surged over the past year.
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.
Also Read: Scammers ditch Ponzi Schemes for Pig Butchering: Chainalysis
