California Regulator Tracks Crypto Fraud Complaints

Every year, consumers and investors send the regulator thousands of complaints about possible crypto scams. It looks like the regulator has done something with the information.

The California Department of Financial Protection and Innovation launched crypto fraud tracker to help traders and investors identify industry dangers.

The tracker was released by zDFPI on February 16. The agency compiles crypto-related complaints from customers who were duped or witnessed frauds.

The list describes how people lost money through scams or tricks. The DFPI received hundreds of complaints from consumers and investors about the frauds on the list. But it did not check them.

Source: DFPI

“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. She also said that steps were being taken by the department to find them:

“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.”

Most of the 36 complaints already in the tracker were about social media and social engineering scams. Users were tricked into doing things by scams on Facebook, WhatsApp, Instagram, TikTok, and dating apps.

Four out of five of them were what the DFPI calls “pig-butchering scams.” Which are basically attempts by scammers to build a relationship with their victims and gain their trust.

According to DFPI spokesperson Elizabeth Smith, consumers say fraud warnings help them avoid being scammed again.

The DFPI says that fake websites are also one of the most commonly reported scams. It stated consumers may be deceived by bogus or real firms or websites with similar names.

The tracker also has a search feature that lets users look up websites or crypto projects that might be fake.

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