CFTC Partners With Agencies to Combat Crypto Pig Slaughter

The U.S. Commodity Futures Trading Commission (CFTC) has partnered with federal agencies and the American Bankers Association to warn consumers about crypto fraud.

These scams lure people into fake romantic relationships via social media, and eventually lure them into fraudulent crypto investments. Victims, who think they are making smart investments, end up losing significant amounts of money.

To raise awareness, the CFTC’s Office of Customer Outreach and Education released a one-page infographic explaining how these scams work and offering tips on how to avoid them. It highlights how scammers target individuals, build trust, and steal money, and urges people to avoid contacting unknown contacts online.

Melanie Devoe, director of the Office of Customer Education and Outreach, said: “These partnerships target a form of confidential relationship fraud that perpetrators commonly refer to as ‘pig slaughter,’ and which costs Americans an estimated billions of dollars each year.”

Melanie Devoe, executive director of OCEO, stressed the importance of stopping the scam before it starts, and advised people not to respond to suspicious messages. The infographic is also being shared by other federal agencies, including the SEC and FBI.

Criminals have moved to pig slaughter scams, outperforming pyramid schemes by using more targeted attacks for higher rewards. This trend has grown significantly over the past year.

The FBI recently reported a staggering $5.6 billion in crypto-related fraud in 2023, with $215 million lost to romance scams alone. Additionally, the Federal Trade Commission has warned that scammers are increasingly using crypto ATMs to steal money, with more than $110 million lost to this tactic last year.

By working with several organizations, the CFTC hopes to inform the public and prevent more people from falling victim to these practices.

Also read: Scammers use pyramid schemes to slaughter pigs: Chainalysis