California financial regulators have shut down 26 different crypto scam websites so far using a “nationally-recognized” scam tracker tool.
The California Department of Financial Protection and Innovation (DFPI) has partnered with the state’s Department of Justice (DOJ), to combat crypto-related fraud and protect consumers from financial harm. The partnership has also uncovered $4.6 million in consumer losses, connected to these scams.
According to a report from the FBI, California lost a staggering $1.2 billion to cryptocurrency scams in 2023.
The DFPI stated that it received 2,668 complaints from residents last year, which led to identifying 7 new fraud schemes.
The ‘Crypto Scam Tracker’ tool is based on consumer complaints and represents descriptions of losses incurred in transactions.
KC Mohseni, DFPI Commissioner, noted that the tool helps empower consumers to stay vigilant, as more crypto scams evolve. He warned residents to be vigilant of unknown platforms and crypto recovery scan sites.
“It is a vital part of our enforcement strategy and role as a financial regulator, educator and enforcement agency,” he said. “Staying informed and reporting scams to the DFPI strengthens the Crypto Scam Tracker, making it an even more effective tool in protecting consumers.”
DFPI Uncovers 7 New Crypto Scam Schemes
The Crypto Scam Tracker tool is updated with several new fraudulent schemes that target consumers and investors. Additionally, the regulator has added a new screenshot feature to display actual interactions with scammers.
Some of the fraud schemes that perpetrators use include Bitcoin mining fraud, luring investors with a promise of shared rewards.
Crypto gaming scams are also becoming increasingly popular in recent times, that promotes play-and-earn, encouraging users to deposit funds.
Others schemes include defrauding crypto investors with fake job offers, airdrops and giveaways, apart from the wallet drainer attack structures and group investment frauds.
DFPI Releases Pig Butchering Playbook
DFPI has also released a ‘Pig Butchering’ scam playbook, explaining the potential loopholes that users should look for.
“As scammers grow increasingly sophisticated and calculated, so must our enforcement,” said Attorney General Rob Bonta. “Scammers can use deception and emotional manipulation to take advantage of people looking for connection.”
Per a recent Chainalysis report, pig butchering fraud has seen the highest crypto revenues. The revenue from these schemes increases by almost 40% YoY.
The post California Shuts Over 26 Crypto Scam Websites, Uncovers $4.6M Losses appeared first on Cryptonews.
This articles is written by : Fady Askharoun Samy Askharoun
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