a month ago 2 min read

Regulatory Agency in California Unveils Crypto Scam Tracker

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Regulators and law enforcement organizations from all around the world are looking into ways to stop crypto crimes and drive out bad actors from the business. With a recently released crypto fraud tracker, the California Department of Financial Protection and Innovation (DFPI) elevated its efforts.

The regulator introduced the security measure known as zDFPI on February 16. The DFPI claims that it developed the cryptocurrency scam tracker based on customer complaints.

A Scam Warning Tool Like A Block List For Bitcoin Users Is DFPI

The DFPI decided to take action by creating a security tool that may warn users of potential frauds and shield them from losing their assets after receiving several complaints from scam victims.

The department's record of complaints from victims of cryptocurrency-related scams is included in the scam tracker. The DFPI detailed losses sustained in transactions that victims identified as being a part of dishonest or fraudulent operations in its list of complaints. The DFPI said that it receives hundreds of investor and consumer complaints each year, but claimed it has not yet had a chance to confirm the listed schemes.

The DFPI Commissioner, Clothilde Hewlett, said in a statement that scammers operate covertly and take advantage of the public's enthusiasm in cryptocurrency assets to prey on defenseless Californians. The commissioner also stated that the DFPI is acting to find the perpetrators using the brand-new cryptocurrency fraud tracker. To expose these fraud schemes and safeguard customers, the government is also stepping up enforcement.

DFPI: Most Bitcoin Scams Start on Fake Websites and Social Media

The majority of the 36 complaints recorded in the tracker, included social media and social engineering frauds. Via Facebook, WhatsApp, Instagram, TikTok, and dating apps, the con artists tricked people into completing certain actions. Scammers obtain access to users' money when they react as expected.

The DFPI reports that "pig-butchering scams" account for four out of every five complaints. Scammers use this technique to acquire their victims' trust before performing the intended deed by flattering them over time. Social media is rife with this kind of fraud.

The DFPI has listed several ways scammers work. Imposter websites are also among the scams that cryptocurrency users claim being perpetrated most frequently.

Similar-sounding or similar-looking company and website names can frequently lead to consumer misunderstanding. It can be challenging for customers to distinguish a genuine website from a fake. Fraudsters develop bogus websites with similar domain names in an effort to imitate companies and mislead consumers.

The organization went on to say that con artists employ high-yield investment products as a means of luring unsuspecting victims into parting with their money. Users can use the tracker's search feature to look up dubious websites and cryptocurrency projects to determine whether they are frauds.

Elizabeth Smith, a DFPI spokesperson, offered her thoughts on the recent development in the study. Consumers told the DFPI that "Scam Alerts" aid in preventing others from falling victim to similar scams.

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