US Agencies Warn About Crypto Pig Butchering Scams with New Infographic
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On September 11, the US Commodity Futures Trading Commission (CFTC) released an infographic about crypto pig butchering to raise awareness of the scheme and prevent American investors from becoming victims.
US Agencies Distribute Infographic About Crypto Pig Butchering Scams
The campaign is being conducted in partnership with other agencies and federal regulators, including the American Bankers Association Foundation, the Securities and Exchange Commission (SEC) and the Federal Bureau of Investigation (FBI), according to an official press release.
Other participating agencies include the Financial Industry Regulatory Authority (FINRA), the Department of Homeland Security, the Secret Service, and the Internal Revenue Service (IRS).
The U.S. Commodity Futures Trading Commission (#CFTC), in collaboration with federal regulators and the #American Bankers Association Foundation, has launched an infographic to raise awareness about "pig butchering" #crypto scams.
These scams involve fraudsters building fake… pic.twitter.com/Y7pbcoaMvK
— TOBTC (@_TOBTC) September 12, 2024
According to Melanie Devoe, director of the CFTC’s Office of Customer Outreach and Education (OCEO), “Partnering with federal and state regulators as well as consumer protection groups and other organizations helps spread the CFTC’s customer education message and hopefully reaches people before they can get scammed. ”
Pig butchering refers to a process where scammers lure unsuspecting online users into fraudulent investment schemes that seem real and profitable. Once the victim invests a substantial amount, the scammers disappear with the funds.
According to the CFTC, pig butchering targets “individuals who think they would never fall for this type of scam by giving them an introspective on how these fraudsters have perfected their criminal craft to entice even the savviest investors.”
However, OCEO advised that early recognition is the best defense against these scams. The campaign aims to educate the public about scammers’ tactics and encourage people not to engage in unsolicited online relationships, especially if they involve financial discussions.
Rising Cryptocurrency Fraud Losses
Crypto schemes like pig butchering scams are becoming prevalent in the crypto space.
A study published in March 2024 showed that pig butchering scammers have stolen over $75 billion worldwide over the last four years.
John Griffin, a finance professor at the University of Texas at Austin, revealed in the study that the preponderance of the victims was based in Southeast Asia.
In a recent report, the FBI revealed that Americans lost $5.6 billion to cryptocurrency fraud in 2023, marking a 45% increase from the previous year. Among these losses, $215 million were attributed to romance-related scams, a key feature of pig butchering.
A July collaboration between the CFTC and the Justice Department’s cybercrime unit highlighted the severity of the issue. The two agencies co-hosted the first-ever conference to combat pig butchering, showcasing the increasing attention these scams are receiving from law enforcement.
