In a united front against a bizarrely named but very real threat, the U.S. Commodity Futures Trading Commission (CFTC) has teamed up with federal heavyweights to tackle the latest crypto con du jour: “pig butchering” scams. If you’re picturing barnyard antics, think again—this scam is no laughing matter, and it’s leaving Americans high and dry to the tune of billions.
The infographic illustrates how criminals initiate a pig butchering scam. Source: CFTC
The New Crypto Slaughterhouse: What’s Pig Butchering Anyway?
Forget about cute farm animals—“pig butchering” is a twisted scam where victims are fattened up, not for bacon, but for their cash. Scammers use social media to cozy up to their prey, posing as potential romantic partners to earn trust. Once they’ve roped you in, it’s not love they’re after—it’s your investment in a phony crypto scheme.
To help spread the word, the CFTC has rolled out a one-page infographic showing exactly how these swindlers operate. From initial contact to the tragic fleecing, the visual guide lays bare the entire scam process, offering a step-by-step playbook on what to watch out for—and more importantly, how to dodge becoming the next victim.
The ABA Foundation’s infographic offers tips on how victims can shield themselves from pig butchering scams. Source: CFTC
The Unlikely Crime-Fighting Squad: Who’s in on This?
The CFTC isn’t flying solo in this mission. They’ve brought in some big guns: the American Bankers Association Foundation, the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and a host of others. It’s a true Avengers moment for U.S. regulators, as they band together to fight back against these modern-day financial wolves.
According to CFTC’s Office of Customer Outreach and Education (OCEO), the goal is simple: reach people before the scam does. “Stop the scam before it starts,” says the OCEO’s director Melanie Devoe. Their advice? If it smells fishy, don’t take the bait. Ignore those sketchy DMs, folks!
Scammy Love: The Rise of Romance Rackets
Pig butchering isn’t the only scam on the rise—crypto romance scams are sweeping the nation faster than a viral TikTok dance. In 2023 alone, Americans lost a staggering $5.6 billion to crypto fraud, a shocking 45% increase from the previous year. And over $215 million of that was siphoned through fake love stories spun online. It’s a cruel twist on the classic romance scam, where instead of candlelit dinners, you’re investing in fraudulent tokens.
Crypto ATMs: The New Scam Vending Machines
Crypto ATMs have emerged as another shady avenue for these crooks. The Federal Trade Commission recently flagged a worrying trend: scammers are using these ATMs as their personal money printers. Typically, a scammer pretends to be a customer service rep, warning you of an account breach or identity theft. In a panic, victims are directed to deposit funds into a crypto ATM using a QR code, which secretly leads straight to the scammer’s wallet.
The stats are mind-boggling: nearly $110 million vanished into thin air last year through these ATM scams, with those over 60 years old being three times more likely to fall for it. It’s a sobering reminder that the digital wild west isn’t just for the tech-savvy; it’s also attracting a less techy but more vulnerable crowd.
The Bottom Line: Don’t Get Butchered!
The takeaway from all this? Stay alert, stay skeptical, and if someone slides into your DMs promising crypto riches or a whirlwind romance, hit that block button. With federal agencies uniting to fight back, there’s hope on the horizon—but for now, the best defense is knowing what’s out there and keeping your wallet close.
For those who’ve already been snared, the CFTC’s infographic offers steps to report the crime and potentially recover funds. It’s a daunting task, but as these scammers get bolder, so too does the fight against them. Keep your wits about you, and remember: if it sounds too good to be true, it probably is.
#cryptoscam #pigbutchering #CFTC
About The Author
A.k.a – alpha girl. Vinita is the founder of Alphachain. She holds an English Lit Majors and bumped into Web3 in 2020 only to realise that tech was her calling. You will find her designing something on Midjourney, writing & editing web3.0 content or simply delivering a speech on how awesome Bitcoin is.
Vinita has worked for some notable brands like Near Education, Biconomy, CoinDCX and a few more.
If you have any queries write her at vinita@alphachain.in
