2024-9-12 02:15 |
The Commodity Futures Trading Commission (CFTC) has joined forces with federal and private organizations to combat the surge in crypto scams known as “pig butchering,” according to a Sept. 11 press release.
According to the agency, these scams have led to billions in losses due to the lack of awareness and understanding. The regulator’s campaign aims to prevent fraud before it occurs by arming consumers with the information they need to recognize the warning signs and avoid falling prey to these schemes.
Raising awarenessUnder the partnership, the CFTC’s Office of Customer Outreach and Education (OCEO) will collaborate with groups like the American Bankers Association Foundation, the SEC, and the Financial Industry Regulatory Authority (FINRA) to raise awareness about these scams via educational material.
The initiative includes an infographic that explains the stages of the scam, from how victims are targeted to how the fraud progresses. It also highlights warning signs and offers advice for those who may have been affected.
Additionally, the OCEO and its partners released an investor alert that describes how scammers gain trust and manipulate victims through unsolicited messages. The alert encourages consumers to avoid engaging in suspicious communications and to report such messages to authorities.
The CFTC’s campaign includes collaboration with several other federal agencies, including the FBI, the Internal Revenue Service’s Criminal Investigation unit, and the Department of Homeland Security. Together, these groups aim to provide the public with tools and knowledge to prevent fraud.
Rise of pig butcheringThe latest Chainalysis 2024 Crypto Crime Report revealed that “pig butchering” scams have become the most profitable type of crypto scam this year, with victims having lost billions.
These scams, in which fraudsters gradually build trust with their victims through online relationships, often via text or dating apps, have evolved rapidly. Scammers convince victims to invest in fake crypto projects, only to vanish with their funds later.
The report noted that 43% of scam inflows in 2024 went to wallets that became active in the same year, reflecting a surge in new scams. These operations are becoming more efficient, with the average lifespan of scams dropping significantly from 271 days in 2020 to just 42 days in 2024.
Scammers are also employing shorter, more targeted campaigns, making it harder for law enforcement to track and disrupt them.
Additionally, illicit marketplaces are fueling these scams by selling seasoned social media profiles, which scammers purchase and use to appear legitimate. These types of markets have seen over $10 million in crypto flows over the past two years.
The post Federal agencies team up to fight surge in ‘pig butchering’ crypto scams appeared first on CryptoSlate.
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