California regulator launches complaint-based crypto scam tracker

The regulator receives thousands of consumer and investor complaints about possible crypto scams each year, and it appears its done something with the information. 2369 Total views 44 Total shares Listen to article 0:00 News Own this piece of history

Collect this article as an NFT The California Department of Financial Protection and Innovation has launched a new crypto scam tracker to help traders and investors spot possible industry threats.

zDFPI launched thetrackeron Feb. 16. Its based on user complaints, with the department compiling a list of crypto-related grievances by victims who 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.The latest scams listed on the new scam tracker. Source: DFPI

Scammers are in the shadows using the publics interest in crypto assets to take advantage of the most vulnerable Californians, said DFPI Commissioner Clothilde Hewlett. Sheadded that the department was taking action to identify 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.

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.

Four-fifths 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.

DFPI spokeswoman Elizabeth Smith said that We have heard from consumers that scam alerts help them avoid similar scams.

Related: Heres how to quickly spot a deepfake crypto scam

Imposter 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 said.

The tracker also has a search function enabling users to look up potentially fraudulent websites or crypto projects in advance. #Adoption #Bitcoin Scams #Social Media #Scams #Hacks

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