New Crypto Scam Tracker launched In California by Regulators
The California Department of Financial Protection and Innovation (DFPI) has launched a complaint-based cryptocurrency scam tracker to help protect consumers from fraudulent activities.
The tracker, which is available to the public, allows users to search for complaints related to cryptocurrency scams and other fraudulent activities.
The tracker also provides information on the types of scams, the number of complaints, and the amount of money lost.
The Department of Financial Protection and Innovation (DFPI)
Of California has introduced a new cryptocurrency scam tracker.
The regulator reported that it receives thousands of consumer and investor complaints about potential crypto scams annually, and it appears they have taken action in response.
The California Department of Financial Protection and Innovation (DFPI) has unveiled a new Crypto Scam Tracker to assist traders and investors in identifying potential risks in the crypto space. This innovative tool provides users with a comprehensive overview of the latest scams, frauds, and other malicious activities, enabling them to make informed decisions and protect their investments.
With this new resource, the DFPI is helping to ensure that the crypto industry remains a safe and secure environment for all. On February 16th, the DFPI released the tracker, which is based on user complaints and compiles a list of crypto-related grievances from victims who claim to have been scammed or have identified attempted scams.
The mentioned complaints are accounts of losses incurred in transactions that victims have identified as being a part of a dishonest or fraudulent scheme. However, the DFPI has not verified any of the scams listed, but they do receive thousands of consumer and investor complaints each year. With this new tool, the DFPI is helping to protect traders and investors from potential scams and fraudulent activities in the crypto industry.
"Scammers are lurking in the shadows, exploiting the public's fascination with crypto assets to prey on the most vulnerable Californians," said DFPI Commissioner Clothilde Hewlett. She added that the department is taking decisive action to identify them:
"The DFPI is determined to expose these ruthless predators and safeguard consumers and investors through the new Crypto Scam Tracker and rigorous enforcement efforts."
The majority of the 36 complaints already listed in the tracker are social media and social engineering scams, where users have been tricked into taking action through scams on Facebook, WhatsApp, Instagram, TikTok, and dating apps.
Eighty percent of the scams reported to the Department of Financial Protection and Innovation (DFPI) were classified as "Pig Butchering Scams," which are social engineering attempts by scammers to build a relationship of trust with their victims.
Elizabeth Smith, a DFPI spokeswoman, commented that "Our consumers have informed us that scam alerts are effective in helping them avoid similar scams."
Imposter websites are also a major issue, according to the DFPI. "When companies or websites have similar names, the potential for consumer confusion is very real," they noted.
To help combat this, the DFPI has created a search function that allows users to look up potentially fraudulent websites or crypto projects before they become victims.
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