As a seasoned crypto investor with a few battles under my belt, I can’t stress enough the importance of staying vigilant in this ever-evolving digital frontier. The recent partnership between the CFTC and federal agencies to warn consumers about pig butchering scams is a much-needed move in our direction towards safer investments.
The U.S. Commodity Futures Trading Commission, along with several federal authorities and the American Bankers Association, have teamed up to alert the public about deceptive “pig butchering” cryptocurrency frauds.
In a deceitful manner, these scammers create the illusion of genuine romantic connections via social media platforms. They subsequently persuade their victims to invest in seemingly legitimate cryptocurrency schemes, ultimately leading them to lose substantial sums of money under the false impression that they are making sound investments.
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.
Melanie Devoe, the Director of Customer Education and Outreach, mentioned that these collaborations aim to combat a type of scam known as ‘pig butchering,’ which is often called this in fraudster circles. This scheme is believed to drain Americans of billions annually.
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.
Over the past year, there’s been a noticeable increase in the prevalence of a new kind of fraud known as “pig butchering” scams. This form of deceit has become increasingly popular, outpacing traditional Ponzi schemes due to its focused approach that promises higher returns.
2023 saw a shocking estimate of $5.6 billion in cryptocurrency-related fraud according to the FBI, with a substantial portion of $215 million being swindled via romance scams. Moreover, the Federal Trade Commission has issued a cautionary note about crooks exploiting crypto automated teller machines (ATMs), leading to a staggering loss of over $110 million last year.
Through collaborations with multiple entities, the CFTC aims to enlighten the general public and minimize the occurrence of individuals becoming victims of such scams.
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2024-09-12 08:20