On 31 October 2024, the United States Commodity Futures Trading Commission (Commodity Futures Trading Commission) issued a customer advisory warning users of popular messaging applications about the risks of crypto-related fraud schemes. Through this advisory, titled Use Caution Responding to Messaging Apps, the Commodity Futures Trading Commission aims to educate consumers on the tactics fraudsters employ to exploit the default settings of messaging apps, with an emphasis on safeguarding crypto assets.
In its announcement, the United States Commodity Futures Trading Commission highlighted the rise of scams on applications like WhatsApp, Telegram, and SMS text messaging, where fraudsters exploit default settings to add users to group chats, often without their consent. The advisory informs users about how these default settings enable scammers to include both targeted and random numbers in fraudulent groups or chats, promoting deceptive schemes such as crypto pump-and-dump tactics. There is a urgent need for users to remain vigilant about unsolicited messages that may seem to offer high returns on crypto investments, typically using enticing promises of significant gains with no risk.
Melanie Devoe, Director of the United States Commodity Futures Trading Commission’s Office of Customer Education and Outreach, stated, “People who use these apps may not be familiar with the risks and frauds commonly associated with crypto assets, receiving a group message promising 300% or 1,000% returns with zero risk or getting in on a supposed crypto opportunity, can be enticing, but it is best to not engage.” Her comments reflect a growing awareness within the United States Commodity Futures Trading Commission about the vulnerabilities that messaging app users face, especially within the volatile and complex landscape of digital assets.
To help users avoid falling victim to such scams, the United States Commodity Futures Trading Commission advises precautionary measures. Users are encouraged not to reply to unknown messages, to delete unsolicited group messages, and to block and report these senders. The advisory also suggests that users review and adjust privacy settings across their messaging apps, carrier accounts, and device settings, which can limit contact to known individuals and prevent future spam. Many major mobile carriers also provide free SMS spam-blocking services or filtering apps, which can be an additional line of defence against unwanted contact.
The office frequently partners with other federal and state regulators, as well as consumer protection groups, to increase public awareness of financial threats and to provide guidance on safeguarding personal assets. Its repository of educational materials, available on the United States Commodity Futures Trading Commission’s website, continues to be a valuable resource for retail investors seeking information on navigating the risks in the digital finance landscape.
In addition to the warnings on messaging apps, the Commodity Futures Trading Commission’s advisory stresses the importance of engaging with only regulated financial entities for crypto trading. It notes that all trading involves risks, and users should be sceptical of any messages received via WhatsApp, Telegram, or SMS that promise guaranteed returns. It advises users to verify the legitimacy of any trading platform through the United States Commodity Futures Trading Commission’s “Check” registration tool, which lists qualified, regulated individuals and firms in compliance with United States trading standards.
(Source: https://www.cftc.gov/PressRoom/PressReleases/9005-24)
