Commodity Futures Trading Commission (CFTC) has formed partnerships with several organizations to raise awareness about cryptocurrency relationship investment scams dubbed “pig butchering.” The regulator’s Office of Customer Outreach and Education (OCEO) is spearheading this initiative to educate and protect consumers from falling victim to these complex fraud schemes.

Efforts to Fight Fraud

According to the official statement, the CFTC is teaming up with various organizations, including the American Bankers Association Foundation, federal agencies, and private regulators. The collaboration focuses on distributing a comprehensive infographic that outlines the “pig butchering” scam. This visual guide details the various stages of the scam, from initial contact to financial loss, and highlights key warning signs for potential victims.

In addition to the infographic, the CFTC is also working with the U.S. Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and the North American Securities Administrators Association (NASAA) to create an investor alert. This alert is designed to educate investors about the tactics scammers use to infiltrate even the most cautious investors’ minds and wallets.

One key piece of advice for investors is to avoid responding to unsolicited messages from unknown sources, a common tactic used by scammers. With these new partnerships and educational efforts, the CFTC aims to significantly reduce the prevalence of “pig butchering” scams and protect investors from financial harm.

Expect ongoing updates as this story evolves.