The California Department of Financial Protection and Innovation (DFPI) has launched a new crypto fraud tracker to help traders and investors spot industry threats.
On February 16, DFPI launched a tracker based on user complaints. It has compiled a list of crypto-related complaints by victims who claim to have been scammed or have identified an attempted scam.
A registered complaint is a description of a loss incurred in a transaction that the victim has identified as part of a fraudulent or deceptive operation. However, the DFPI stated that it has not verified any of the listed frauds, but noted that it receives thousands of consumer and investor complaints every year.
“Scammers are in the shadows using public interest in crypto assets to take advantage of the most vulnerable Californians,” said DFPI Commissioner Clothilde Hewlett. He added that the department is taking steps to identify:
“Through the new Crypto Scam Tracker, combined with rigorous enforcement efforts, DFPI is committed to shining a light on these ruthless predators and protecting consumers and investors.”
The majority of the 36 complaints that have been registered 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.
80% of them are what the DFPI calls “Pork Butcher Scams” which are actually social engineering attempts by scammers who try to establish a relationship and trust with the victim.
DFPI spokeswoman Elizabeth Smith said: “We’ve heard from consumers that scam alerts help prevent similar scams.”
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Imposter websites are also one of the most commonly reported scams, according to the DFPI. “When a company or website (fake or not) has a name that looks or sounds the same, the potential confusion is created for real consumers,” he said.
Tracker also has a search function that allows users to search for potentially fraudulent websites or crypto projects in advance.