The Commodity Futures Trading Commission (CFTC) has joined forces with the SEC, FINRA, and other organizations to tackle the alarming rise in cryptocurrency scams, particularly those known as 'pig butchering.'

This initiative is designed to educate consumers on how to recognize the warning signs of fraud and avoid falling victim to scams.

As cryptocurrency scams become increasingly sophisticated, the CFTC aims to raise public awareness and provide tools to help prevent such fraud.

In 2023, Americans lost an estimated $5.6 billion to cryptocurrency fraud, a staggering 45% increase from the previous year, with romance scams alone accounting for over $215 million.

Notably, individuals over 60 are three times more likely to be targeted by these scams compared to younger adults.

To aid in this effort, the CFTC's Office of Customer Outreach and Education (OCEO) is creating educational materials, including an infographic that details how scams operate and offers advice for potential victims.

The infographic, released on September 11, outlines the stages of victim targeting and provides guidelines on identifying and avoiding 'pig butchering' scams.

These scams typically involve fraudsters establishing fake romantic relationships through social media or dating apps, ultimately luring victims into investing in fraudulent cryptocurrency ventures.

The rise of these scams has resulted in billions of dollars in losses, largely due to a lack of consumer awareness and understanding.

The lifespan of scams has dramatically decreased from an average of 271 days in 2020 to just 42 days in 2024, complicating law enforcement's ability to track them.

The CFTC is collaborating with various federal agencies, including the FBI and the Department of Homeland Security, to enhance public knowledge on fraud prevention.

Scammers are increasingly using illicit marketplaces to acquire seasoned social media profiles, which lend an air of legitimacy to their operations, with over $10 million in cryptocurrency flowing through these markets in the past two years.