The Californian Department of Financial Protection and Innovation (DFPI) has launched a new crypto scam tracker to help traders and investors spot possible industry threats. On Feb. 16, the DFPI launched the tracker based on user complaints. It has compiled a list of crypto-related grievances by victims that claim to have been scammed or have identified attempted scams.
The complaints listed represent descriptions of losses incurred in transactions that victims have identified as part of a fraudulent or deceptive operation. However, the DFPI stated that it had not verified any of the scams listed, but noted that it receives thousands of consumer and investor complaints each year.
Clothilde Hewlett, Commissioner at the DFPI, commented on the new tracker: “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.”
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. 80% of them 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.
Elizabeth Smith, a DFPI spokeswoman, said that “We have heard from consumers that scam alerts help them avoid similar scams.” Impostor 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 noted.
The tracker also has a search function enabling users to look up potentially fraudulent websites or crypto projects in advance. This way, users can be more aware of the potential scams they may encounter in the crypto industry and take the necessary steps to protect themselves.
The DFPI’s new scam tracker is a welcome addition to the crypto industry, as it helps to protect users from becoming victims of fraud. With the rise of cryptocurrency, scammers have become more active and have found new ways to target users. By providing a platform for users to report scams, the DFPI is helping to create a safer environment for crypto traders and investors.
It is important for users to be aware of the potential risks associated with cryptocurrency and to take the necessary precautions to protect themselves. By using the DFPI’s scam tracker, users can be more informed and can take steps to avoid becoming victims of fraud.
The DFPI’s new scam tracker is a great resource for users to stay informed and protect themselves from potential scams. With its search function, users can easily look up potential scams before engaging in any transactions. This is a great way for users to stay safe and secure when trading and investing in cryptocurrency.
The DFPI is taking a proactive approach to protecting users from crypto scams by providing a platform for users to report scams. With its new scam tracker, the DFPI is helping to create a safer environment for crypto traders and investors. By providing users with the tools to protect themselves, the DFPI is making the crypto industry a safer and more secure place for all users.
