The post CFTC Launches Educational Partnerships to Combat Pig Butchering Scams in Cryptocurrency appeared on BitcoinEthereumNews.com.

The rising tide of cryptocurrency scams continues to alarm regulators, prompting urgent action from the CFTC. With losses mounting into the billions, the urgency for consumer education has never been greater. “Pig butchering” scams, a method where perpetrators cultivate relationships to defraud victims, have become a focal point of these efforts. The CFTC launches a robust initiative to combat the escalating threat of cryptocurrency scams, particularly focusing on deceptive relationship-based schemes costing victims billions. CFTC’s Commitment to Combat Crypto Scams The Commodity Futures Trading Commission (CFTC) has undertaken significant steps to protect investors from the escalating number of cryptocurrency scams. Recently, the CFTC revealed two strategic partnerships with key federal and private organizations designed to heighten consumer awareness about pervasive schemes, particularly “pig butchering” scams. This initiative not only underlines the CFTC’s commitment to market integrity but also aims to provide investors with essential knowledge to identify and avoid potential fraudulent activities. Understanding the Mechanics of ‘Pig Butchering’ Scams “Pig butchering” scams insinuate their way into the lives of potential victims by establishing trust and emotional connections. According to Melanie Devoe, the CFTC’s Office of Customer Outreach and Education (OCOE) Director, these carefully orchestrated scams are responsible for substantial financial losses—estimated to reach billions annually for American investors. The CFTC aims to disrupt this process by implementing educational programs that shine a light on these tactics, emphasizing preventative strategies to confront scammers before they can inflict harm. “By collaborating with federal and state regulators, as well as consumer protection organizations, we can amplify our consumer education initiatives and preempt potential scams,” Devoe noted. Strengthening Consumer Awareness Through Strategic Partnerships The CFTC’s partnership with the American Bankers Association Foundation and the SEC’s Office of Investor Education and Advocacy represents a multi-faceted approach to consumer education. Specifically, the American Bankers Association Foundation…

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Filed under: News - @ September 12, 2024 1:15 am