The Commodity Futures Trading Commission ( CFTC ) has announced partnerships with federal and private groups to educate users about common cryptocurrency scams.
These programs will help enlighten users about the growing number of “pig butchering” scams and other fake investment practices.
Regulators continue to tighten the market against rising cryptocurrency scams by bad actors.
CFTC Unveils Partnership to Fight Cryptocurrency Scams
The CFTC has tapped two groups in a partnership billed to educate users against cryptocurrency scams.
In a recent release, the Commission's Office of Customer Education and Outreach (OCOE) partnered with the American Bankers Association Foundation and the Securities and Exchange Commission's Office of Investor Education and Advocacy.
Digital asset-based relationship investment scams are at the core of the move as regulators look to curb the growing threat.
These scams cost Americans billions of dollars each year and investor education is Vai to preventing them from happening, explains Melanie Devoe, Director of OCOE.
“Working with federal and state regulators, as well as consumer protection groups and other organizations, helps spread the CFTC’s consumer education message and hopefully reaches people before they can be scammed.
These partnerships center on a relationship trust fraud commonly referred to by criminals as ‘pig-slaughtering,’ which is estimated to cost Americans billions of dollars each year.”
US and global authorities have stepped up market regulation amid rising fraud and non-compliance.
The CFTC and SEC have filed lawsuits against several cryptocurrency companies for regulatory violations. The FBI recently warned of threats from North Korean hackers against companies issuing Bitcoin ETFs.
Both sides play different Vai .
According to the announcement, the American Bankers Association Foundation will circulate an infographic to help investors and users spot potential pig-killing scams.
This infographic shows the operations of bad actors, including how they target and lure victims.
On the other hand, the SEC's Office of Investor Protection and other regulators will distribute warnings to investors about pig slaughter.
“This infographic targets individuals who think they would never fall for this type of scam by giving them insight into how these scammers have perfected their criminal tactics to lure in even the smartest investors.
One way all investors can protect themselves is to stop a scam before it starts by not responding to unexpected or unsolicited text messages from unknown senders.”
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