The California Department of Financial Protection and Innovation has launched a new crypto scam tracker to help traders and investors spot potential industry threats..
The DFPI launched the tracker on February 16. It is based on user complaints, and the department compiles a list of cryptocurrency-related complaints submitted by victims. who claim to have been scammed or have identified scam attempts.
The complaints listed represent descriptions of losses suffered 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 listed scams, but noted that it receives thousands of consumer and investor complaints each year.
“Scammers are behind the scenes using public interest in crypto assets to take advantage of the most vulnerable Californians,” said DFPI Commissioner Clothilde Hewlett. He added that the department was taking steps to identify them:
“Through the new Cryptocurrency 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 reports already on the tracker were social media scams and social engineering in which users have been tricked into acting through scams on Facebook, WhatsApp, Instagram, TikTok, and dating apps.
Four-fifths of these were what the DFPI calls “pig-butchering scams”, which are essentially attempts at social engineering by scammers trying to establish a relationship and trust with the victim.
DFPI spokeswoman Elizabeth Smith said “we’ve heard from consumers that scam alerts help them avoid similar scams.”.
Impostor websites are also one of the most reported scams, according to the DFPI. “When companies or websites (fake or not) have similar or sounding names, the potential confusion created for consumers is real,” he said.
The crawler also features a search feature that allows users to search for potentially fraudulent websites or cryptocurrency projects in advance..
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