Feb 17, 2023

DFPI Launches Crypto Scam Tracker to Protect Consumers

The California Department of Financial Protection and Innovation (DFPI) has taken a major step towards protecting consumers and investors from crypto scams by launching a new Crypto Scam Tracker. The tracker, which was launched on Feb. 16, is based on user complaints, with the department compiling a list of crypto-related grievances by victims who have identified attempted scams.

The DFPI has stated that it has not verified any of the scams listed, but noted that it receives thousands of consumer and investor complaints each year. The majority of the 36 complaints already listed in the tracker were social media and social engineering scams where users have been duped into taking action via scams on Facebook, WhatsApp, Instagram, TikTok and dating apps.

“Scammers are in the shadows using the public’s interest in crypto assets to take advantage of the most vulnerable Californians,” said DFPI Commissioner Clothilde Hewlett. “Through the new Crypto Scam Tracker, combined with rigorous enforcement efforts, the DFPI is committed to shining a light on these ruthless predators and protecting consumers and investors.”

According to the DFPI, four-fifths of the scams listed are “pig-butchering scams”, which are social engineering attempts by scammers trying to establish a relationship and trust with the victim. Imposter websites are also one of the most commonly reported scams, with the DFPI warning that when companies or websites (fake or not) have look- or sound-alike names, the potential confusion created for consumers is real.

The DFPI spokeswoman Elizabeth Smith said that “We have heard from consumers that scam alerts help them avoid similar scams.” The tracker also has a search function enabling users to look up potentially fraudulent websites or crypto projects in advance.

The DFPI is now encouraging users to be proactive in protecting themselves against crypto scams. It is encouraging users to use the Crypto Scam Tracker to stay informed and to take steps to protect themselves.

The DFPI is also recommending that users take the following steps to avoid falling victim to crypto scams:

• Do your research: research the company or project you are considering investing in, and check the Crypto Scam Tracker for any warnings.

• Don’t invest more than you can afford to lose: never invest more money than you can afford to lose.

• Be wary of promotions and offers: if an offer seems too good to be true, it probably is.

• Be wary of unsolicited offers: if you are contacted by someone offering to buy or sell crypto, be wary and do your research.

• Be wary of NFTs and other digital assets: NFTs and other digital assets are high-risk investments and should be approached with caution.

• Use secure websites: always use secure websites and check for the latest security updates.

By following these steps, users can help protect themselves and their investments from crypto scams. The DFPI hopes that by launching the Crypto Scam Tracker, it can help users stay informed and protect themselves from crypto scams.

Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.