In an effort to combat the growing threat of Bitcoin fraud known as “pig slaughter,” the Commodity Futures Trading Commission has issued a announce a coordinated effort With other federal and commercial organizations.
In doing so, the agency will work with a variety of federal and private groups—not just the SEC and the FINRA—to increase public awareness and education about such fraud.
In response to these scams, the Office of Consumer Engagement and Education partners with organizations such as the American Bankers Association Foundation, the FBI, and the Department of Homeland Security to distribute consumer information materials that raise “red flags” that may help consumers identify and avoid these scams.
newly, “Pig Slaughter” Scams It was reported to be the highest-yielding scam involving cryptocurrencies, resulting in staggering losses for victims.
Source: CFTC
What are the scams related to pig slaughter?
These types of schemes typically involve scammers luring victims into trust — often through dating apps or social media — and then convincing them to fund bogus cryptocurrency-based projects. The CFTC’s campaign aims to prevent fraud before it happens by educating potential victims about the tactics scammers use.
CFTC Launches Campaign to Combat Cryptocurrency Investment Fraud
The Commodity Futures Trading Commission (CFTC) has partnered with organizations like the American Bankers Association Foundation and federal agencies to educate the public about cryptocurrency investment scams, specifically “pig coins.”
— Coinness Global (@CoinnessGL) September 11, 2024
Partnerships and educational materials
the Commodity Futures Trading Commission Campaign This also includes a chart showing the stages of the process – from how the victim is targeted to the end result of losing money. This chart will be used to identify red flags and provide advice on where to report suspicious messages.
The CFTC is also collaborating with the SEC’s Office of Investor Education and Advocacy, the Financial Industry Regulatory Authority (FINRA), and the North American Securities Administrators Association to develop and disseminate an investor alert to clearly show how scammers who practice “fraud” operate.
Reporting mechanism and objectives
The site also urges victims to report scams to authorities and gives step-by-step instructions on how to document and report fraudulent activity. The CFTC’s campaign targets those who would not expect to fall victim to fraud and emphasizes the message that even informed investors can be targeted.
This coordinated move by the CFTC is a major step toward alleviating growing concerns about cryptocurrency scams. The alliances will help make the mission a reality: empowering people to defend against scams that have become increasingly sophisticated.
Featured image by Pexels, chart by TradingView