The CFTC has announced partnerships with private and federal regulators to inform investors and users about potential scam activities.
The Commodity Futures Trading Commission (CFTC) has announced partnerships with federal and private organizations to inform users about prevalent cryptocurrency schemes.
In the programs, users will be informed about the increasing prevalence of scams and fraudulent investment concepts. Regulators further tighten the markets to combat the increasing number of crypto scams perpetrated by malicious actors.
CFTC Announces Partnership Against Crypto Scams
The CFTC has partnered with two organizations to provide users with information regarding cryptocurrency schemes. The Commission’s Office of Customer Outreach and Education (OCOE) collaborated with the American Bankers Association Foundation and the United States Securities and Exchange Commission’s Office of Investor Education and Advocacy in a recent release.
Regions are focusing on digital asset-based relationship investment schemes to mitigate the expanding menace. The OCOE Director, Melanie Devoe, elucidated that these schemes result in billions of dollars in annual losses for Americans and that investor education is a critical factor in preventing their occurrence.
“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. These partnerships focus on a relationship confidence fraud the perpetrators commonly refer to as ‘pig butchering,’ that is estimated to cost Americans billions each year.”
The United States and global authorities have accelerated the pace of market regulation in response to the increasing prevalence of non-compliance and fraud. The CFTC and the SEC have filed several lawsuits against crypto firms for violating regulations. The FBI has recently warned about the potential threats posed by North Korean cyberattacks to Bitcoin ETF issuers.
Both parties to Assume Different roles
The American Bankers Association Foundation will distribute an infographic to assist investors and users in identifying potential scams, as stated in the release. It demonstrates the operational strategies of malicious actors, such as targeting and grooming victims. Conversely, the SEC’s Office for Investor Advocacy and other regulatory agencies will issue investor alerts.
“It is designed to appeal to individuals who believe they are immune to this type of scam by providing them with an in-depth examination of the methods by which these fraudsters have refined their criminal skills to entice even the most sophisticated investors.” Investors may safeguard themselves by refraining from responding to unexpected or unsolicited text messages from unknown senders and preventing crypto fraud from commencing.
