The DFPI’s crypto scam tracker aims to help traders and investors detect potential industry threats in California. This initiative follows an increase in fraudulent crypto schemes targeting the public’s interest in digital assets.
The tracker, launched on Feb. 16, is based on user complaints received by the department. The DFPI has created a catalog of grievances related to crypto scams reported by alleged victims. The department, however, clarified that it hadn’t authenticated any of the complaints, although it gets thousands of complaints from consumers and investors every year.
According to DFPI Commissioner Clothilde Hewlett, scammers are exploiting vulnerable Californians by leveraging their fascination with crypto assets. She emphasized the need for enhanced regulatory measures to combat these fraudulent schemes. “She added that we are committed to identifying these ruthless predators and protecting consumers and investors,” says the department.
In addition, the tracker currently has 36 complaints, most of which are social media and social engineering scams. The DFPI referred to four-fifths of these as “pig-butchering scams,” which are essentially social engineering attempts by scammers trying to establish a relationship and trust with the victim.
Moreover, the DFPI reports that imposter websites commonly report scam as well. The department warned that fake websites with similar names to legitimate companies or websites could confuse consumers.
To help investors avoid falling prey to these scams, the tracker also has a search function enabling users to look up potentially fraudulent websites or crypto projects in advance.
Importance of Crypto Scam Tracker
Additionally, the launch of the new crypto scam tracker by the DFPI highlights the growing need to protect investors and traders from fraudulent schemes. With the surge in interest in digital assets, scammers are increasingly using various means to dupe unsuspecting investors.
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Furthermore, the tracker is vital to help investors stay informed about potential industry threats and avoid falling prey to scams. It is a step in the right direction toward ensuring the safety and protection of investors in the crypto space.
This article conveys general information and the opinions expressed should not be considered personal advice for any individual or specific security or investment product.