On 11 July 2024, the Commodity Futures Trading Commission (CFTC) and the Department of Justice’s Computer Crime and Intellectual Property Section’s National Cryptocurrency Enforcement Team (NCET) announced the commencement of the first Fraud Disruption Conference, aimed at combating the pervasive fraud scheme known as “pig butchering.” This type of scam, which has resulted in billions of dollars in losses for Americans annually, is a paramount concern for law enforcement.
This inaugural conference is the first in a series that the CFTC will host in collaboration with various partners to address a range of financial frauds and explore innovative methods to combat and disrupt these scams. “It is devastating to hear countless stories of everyday Americans being targeted and defrauded by global criminal organizations,” said CFTC Chairman Rostin Behnam. “It has been a longstanding priority of mine to reenergize and expand our customer protection initiatives to combat retail fraud and shield the most vulnerable among us. I thank our CFTC staff for their dedication, and our longstanding partners at the Department of Justice and all others involved. By working together, we can tackle this problem.”
More than 300 federal regulators and law enforcement officials from over 15 federal agencies, including the FBI, Social Security Administration, and the U.S. Securities and Exchange Commission, participated in the conference. They developed tangible strategies to fight scams that have stripped Americans of their life savings. Melanie Devoe, Director of the Office of Customer Education and Outreach (OCEO), highlighted the collaborative effort: “This is one of many scams working groups will discuss at future gatherings with the ultimate goal of working collaboratively to help Americans protect themselves from this and other financial frauds.”
The working group focused on strategies to prevent victimization, leveraging technology to disrupt fraud, and enhancing enforcement efforts. Several agencies also collaborated on an anti-victimization messaging campaign to warn Americans about emerging fraud threats. Notable speakers included CFTC Chairman Behnam and DOJ NCET Director Claudia Quiroz.
The CFTC is continuously taking steps to ensure the safety of customers. By hosting these conferences and working closely with other federal agencies, the CFTC aims to bolster its customer protection initiatives. This includes educating the public about potential scams, improving the regulatory framework to protect consumers, and enhancing surveillance to detect and prevent fraudulent activities.
In combating illicit activities, the CFTC has implemented several measures. These include the development of advanced technological tools to monitor market activities, stringent enforcement actions against perpetrators of fraud, and the establishment of collaborative networks with other regulatory and law enforcement bodies. The agency also focuses on enhancing the transparency and security of financial transactions to safeguard market participants.
The CFTC advises the general public to report any cryptocurrency investment fraud to www.IC3.gov. When submitting your complaint, include comprehensive information such as the names of investment platforms, cryptocurrency addresses, transaction hashes, bank account information, and the names and contact information of suspected scammers. Additionally, retain copies of all communications with scammers and records of financial transactions. This will aid in the investigation and recovery of funds.
(Source: https://www.cftc.gov/PressRoom/PressReleases/8932-24)
