Feb 17, 2023
DFPI Launches Crypto Scam Tracker to Protect Investors
The California Department of Financial Protection and Innovation (DFPI) has just unveiled a new crypto scam tracker to help crypto traders and investors identify potential threats in the industry.
The DFPI launched the tracker on February 16th, 2021. It is based on user complaints, with the department compiling a list of crypto-related grievances by victims who have been scammed or have identified attempted scams.
The complaints listed on the tracker represent descriptions of losses incurred in transactions that victims have identified as part of a fraudulent or deceptive operation. However, the DFPI has not verified any of the scams listed, but noted that it receives thousands of consumer and investor complaints each year.
Clothilde Hewlett, Commissioner of the DFPI, stated that “Scammers are in the shadows using the public’s interest in crypto assets to take advantage of the most vulnerable Californians. 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, 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.
Four-fifths of these complaints were what the DFPI refers to as “pig-butchering scams,” which are essentially 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, according to the DFPI. “When companies or websites (fake or not) have a look- or sound-alike names, the potential confusion created for consumers is real,” it said.
The DFPI also noted that users can use the tracker’s search function to look up potentially fraudulent websites or crypto projects in advance.
The crypto industry has seen a surge in activity in recent years, with the non-fungible token (NFT) market taking off and the increasing popularity of crypto-based promotional campaigns. With all of this activity, it is important for traders and investors to be aware of potential scams and frauds in the space.
The DFPI’s new crypto scam tracker is a great tool for helping traders and investors identify potential threats in the industry, and is a valuable resource for anyone looking to stay safe when trading or investing in crypto.
The DFPI has also been working with crypto marketing agencies to help promote the use of the scam tracker and to raise awareness of the dangers of crypto scams. The department is also working to create a network of web3 agencies to help promote the use of NFTs and other crypto-based marketing campaigns.
The DFPI is committed to protecting consumers and investors from scams and frauds, and the new crypto scam tracker is a valuable tool for helping to do just that. With the increasing popularity of crypto-based promotional campaigns, it is important for traders and investors to be aware of potential scams and frauds in the space. The DFPI’s new crypto scam tracker is a great resource for anyone looking to stay safe when trading or investing in crypto.
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