Aggregated News From Investment Management Regulators

CFTC Participates in Operation Income Illusion to Raise Retail Fraud Awareness


Please complete the required fields.

— The Commodity Futures Trading Commission today announced its participation in “Operation Income Illusion.” Spearheaded by the Federal Trade Commission, Operation Income Illusion is a joint effort announcing law enforcement cases and customer education information as part of a nationwide crackdown on scams targeting customers with fake promises of income.

The Operation Income Illusion initiative encompasses cases from 20 federal, state, and local agencies, including 32 actions from the CFTC’s Division of Enforcement. The CFTC’s participation in the initiative underscores the Commission’s commitment to protecting customers in derivatives markets.

“The CFTC’s enforcement efforts in connection with Operation Income Illusion demonstrate that the CFTC continues to bring critical, high impact cases that protect customers. We can most effectively protect customers by working together with our colleagues in the enforcement and regulatory community,” said Division of Enforcement Acting Director Vince McGonagle. “Partnership with our counterparts is an indispensable element of our enforcement program.”

In addition to the CFTC’s Operation Income Illusion enforcement cases, it is raising awareness about the potential for fraud through its social media accounts. In recent months, the CFTC has received hundreds of tips about individuals posing as digital asset or foreign exchange brokers promising to multiply investments tens or hundreds of times in a matter of weeks. The promises, most often times made by unregistered entities, are used to get traders to invest and pay one fee after another in order to claim their profits. These frauds generally originate on social media platforms and utilize other technologies, such as encrypted messaging apps, that further hide the fraudsters’ true identities. The CFTC posts highlight recent fraud trends and provide tips to help social media users spot and avoid potential scams.

“All of the CFTC cases included in Operation Income Illusion have one thing in common,” said Director of the Market Participants Division Joshua B. Sterling, whose unit oversees the CFTC’s customer education initiatives. “None of the entities or perpetrators that committed these frauds were registered with the CFTC. Registration is not a guarantee of fraud-free trading, but it does provide certain safeguards that can weed out bad actors and ensures customers receive all the protections afforded to them under the law. All market participants, whether they are seasoned hedgers or freshly minted speculators, should check the registration status of the people and companies they give their money to before trading.”

CFTC’s Customer Protection Information

The CFTC has issued advisories, videos, and publications to alert customers about fraud and easy ways to spot them.

Customers can report suspicious activities or information, such as possible violations of commodity trading laws, to the Division of Enforcement via a toll-free hotline 866-FON-CFTC (866-366-2382) or file a tip or complaint online.

This news item was originally published by the Commodity Futures Trading Commission (CFTC US). For more information, see the Source Link.

Regulator Information

Abbreviation: CFTC
Jurisdiction: USA

Recent Articles

The SEC Levels Up: Statement on In re Activision Blizzard

Feb. 3, 2023 Today, the Commission announced a $35 million settlement with Activision Blizzard Inc. (“Activision Blizzard”).

Mr William Stephen Cairns (date of Birth 15 January 1949) of Key West, Doyle Road, St Peter Port Guernsey GY1 1RG — GFSC

Date of prohibition order pursuant to section 33 of the Financial Services Business (Enforcement Powers) (Bailiwick of Guernsey) Law, 2020 and prohibited functions: From 2 February 2023 until 2 July

Mr Du Preez Gert Vermeulen (Date of Birth 5 August 1987) of Doyle Court, Doyle Road, St Peter Port Guernsey GY1 1RD

Date of prohibition order pursuant to section 33 of the Financial Services Business (Enforcement Powers) (Bailiwick of Guernsey) Law, 2020 and prohibited functions: From 2 February 2023 until 2 Mar

Publication of a Notice of the fact of a Prohibition Order and a Discretionary Financial Penalty — GFSC

On 2 February 2023, the Commission imposed discretionary financial penalties as follows:  Mr William Stephen Cairns (“Mr Cairns”) a financial penalty of £133,000; and  Mr Du Preez Gert Vermeulen (“M

Get the latest from Regulatory.News in your inbox!