California Debuts Crypto Scam Tracker

A new cryptocurrency scam tracker has been released by the California Department of Financial Protection and Innovation to enable traders and investors in identifying potential dangers to the sector.

On February 16, zDFPI made the tracker public. It is based on user reports, with the agency maintaining a record of complaints on cryptocurrency from victims who allege to have been duped or have discovered attempted hacks. 

Users can utilize the tracker’s search tool to seek into possibly shady websites or cryptocurrency initiatives beforehand.

The California regulator added that while it has not independently proven any of the listed scams, it did remark that it receives hundreds of investor and consumer complaints annually. Clothilde Hewlett, commissioner of the DFPI states that “scammers are in the shadows using the public’s interest in crypto assets to take advantage of the most vulnerable Californians,” while adding that the agency was taking steps to recognize them. 

She further added that “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.”

The California regulator’s spokeswoman Elizabeth Smith asserts: 

“We have heard from consumers that scam alerts help them avoid similar scams.”

36 Complaints Already Accepted by the California Regulator

The DFPI lists imposter websites as one of the most often reported scams. It noted: “When companies or websites [fake or not] have a look- or sound-alike names, the potential confusion created for consumers is real.”

The 36 complaints that have already been added to the tracker were mostly social media and media manipulation schemes, in which users were tricked into acting by means of fraud on Facebook, WhatsApp, Instagram, TikTok, and dating apps. 

The California refers to four out of five of them as “pig-butchering scams,” which are simply attempts by con artists to build a relationship and gain confidence with the victim. 

Moreover, a survey by Bankless Times published in July found that between January 2021 and March 2022, romance cryptocurrency scams cost Americans almost $185 million.