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The Commodity Futures Trading Commission’s (CFTC) Office of Customer Education and Outreach (OCEO) has announced two partnerships to tackle the rising threat of cryptocurrency relationship investment scams, commonly referred to as “pig butchering.” 

Pig butchering scams, which have defrauded Americans of billions of dollars, involve scammers building trust with victims before coercing them to invest in fraudulent crypto investments.

OCEO’s partnerships include collaborations with the American Bankers Association Foundation, the US Securities and Exchange Commission's (SEC) Office of Investor Education and Advocacy, the Financial Industry Regulatory Authority (FINRA), and the North American Securities Administrators Association (NASAA), among others. 

These alliances aim to distribute critical information that educates consumers about how to recognize and avoid these scams.

In one initiative, OCEO and its partners developed an infographic that visually outlines the phases of the scam—from initial targeting and grooming to the final fraudulent activity. The infographic provides clear warning signs and actionable steps for victims of such scams.

Melanie Devoe, Director of the OCEO, emphasized the importance of partnerships in spreading awareness and preventing fraud, saying: 

“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”

Additionally, OCEO, along with federal agencies and private regulators, has released an investor alert to help individuals identify the sophisticated tactics used by scammers. The alert advises customers not to respond to unsolicited or unexpected text messages and offers practical tips for reporting suspicious communication.

The partnerships and outreach efforts highlight the CFTC's ongoing mission to protect consumers in the rapidly evolving cryptocurrency landscape. Collaborating agencies also include the Federal Bureau of Investigation (FBI), Internal Revenue Service (IRS), U.S. Department of Homeland Security (DHS), and the U.S. Secret Service, among others.

The CFTC continues to urge caution and vigilance, encouraging consumers to stay informed and take proactive steps to safeguard their investments.

Read more: 43% of 2024 crypto scam inflows linked to pig butchering: Chainalysis