California Regulator Launches Crypto Scam Tracker

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  • A California regulator has launched a crypto scam tracker
  • The DFPI has launched the tracker with 36 known scams and a breakdown of how the most common ones work
  • The hope is that people will educate themselves at to how these scammers operate

The California Department of Financial Protection and Innovation has launched a crypto scam tracker to help users determine if a potential crypto investment should be avoided. The information is based on reports from victims and states the name of the project, the website and their experience. The site also provides a glossary which explains how the most common scams work.

36 Scams Listed

The Crypto Scam Tracker has launched with 36 reported scams, including romance or ‘pig butchering’ scams, passive income opportunities, and copycat sites with names and websites very similar to known platforms designed to take users’ money. Another growing threat seems to be social engineering, where new ‘friends’ who ingratiate themselves online spend weeks building up relationships with victims, using the trust and rapport built up to convince them to register with a scam site. In some cases, family and friends unwittingly drove victims towards scam sites, where they lost tens of thousands of dollars.

Social Engineering Scams Increasing

The crypto space has seen a huge increase in social engineering scams in recent years, with scammers happy to play the long game and string multiple individuals along for longer periods. Indeed, even high profile members of the crypto space have fallen victim to these sorts of attacks, losing valuable digital assets in the process.

Anyone can refer a scam to the DFPI through an online form, and while the concept is obviously a good one, the operators will likely just close the site down and start a fresh one. The idea of course is that people will become savvy with the different processes involved and will be able to spot when any conversation or interaction looks like it might turn into a scam.