- The California Department of Financial Protection and Innovation (DFPI) has partnered with the state’s Department of Justice (DOJ) to combat cryptocurrency scams
- The partnership has led to the shutdown of over 26 fraudulent websites and the identification of $4.6 million in consumer losses
- Through the DFPI’s Crypto Scam Tracker, more than 2,668 consumer complaints were recorded in 2024, uncovering seven new types of crypto-related scams
In a concerted effort to protect consumers from the escalating threat of cryptocurrency fraud, California’s Department of Financial Protection and Innovation (DFPI) has joined forces with the state’s Department of Justice (DOJ). This collaboration has resulted in the dismantling of over 26 scam websites and the revelation of $4.6 million in consumer losses. The initiative leverages the DFPI’s Crypto Scam Tracker, which documented more than 2,668 consumer complaints in 2024, leading to the identification of seven novel scam types.
Emerging Scam Tactics
The DFPI’s Crypto Scam Tracker, launched in 2023, has shed light on several new fraudulent schemes targeting consumers and investors:
- Bitcoin Mining Scams: Fraudsters solicit investments for non-existent mining operations, promising shared rewards that never materialize
- Crypto Gaming Scams: Deceptive play-to-earn games encourage users to deposit funds, only to drain their wallets using malicious programs
- Crypto Job Scams: Scammers impersonate recruiters, offering fake jobs that require victims to transfer crypto assets or provide sensitive information
- Crypto Wallet Drainer Attacks: Malicious websites trick users into interacting with fraudulent projects that automatically steal crypto assets
- Crypto Giveaway/Airdrop Scams: Fraudsters pose as prominent figures or companies, promoting fake giveaways to steal private keys and wallet information
- Investment Group Scams: Fake investment groups on platforms like WhatsApp or Telegram lure victims into fraudulent trades, often led by scammers posing as financial experts.
DFPI Commissioner KC Mohseni emphasized the importance of consumer vigilance, stating, “As crypto scams evolve, DFPI’s Crypto Scam Tracker helps empower consumers to stay vigilant.” He advised Californians to exercise caution with unknown platforms, verify website domains to avoid fraudulent imitations, and remain wary of crypto recovery scam sites.
Californians Urged to Stay Vigilant
Attorney General Rob Bonta echoed these sentiments, highlighting the increasing sophistication of scammers, noting, “Scammers can use deception and emotional manipulation to take advantage of people looking for connection.” Bonta urged Californians to be vigilant and protect their finances by avoiding sending money to anyone they have never met in person.
The DFPI encourages consumers and investors who have been targeted by scams or suspect fraudulent activity to report it immediately by submitting a complaint online or calling toll-free at (866) 275-2677. The Crypto Scam Tracker serves as a valuable resource for consumers navigating the risks associated with crypto investments, offering a searchable database of scam reports and a glossary explaining common fraud tactics.
