The California Department of Financial Protection and Innovation has joined forces with the Department of Justice to combat cryptocurrency fraud, closing down more than 26 fake websites and uncovering $4.6 million in consumer losses.
DFPI's Anti-Fraud Operation
Announced on March 10, the operation was made possible by the DFPI’s Crypto Scam Tracker, a tool developed to identify emerging scams. In 2024, the tracker recorded over 2,668 consumer complaints, leading to the identification of seven new types of crypto scams. DFPI Commissioner KC Mohseni emphasized the importance of verifying website domains and being cautious with unfamiliar platforms, describing the tracker as a critical component of the state's strategy to protect residents from financial exploitation.
New Types of Crypto Scams
The scams include Bitcoin mining scams enticing victims with fake operations and false promises. Crypto gaming scams drain users’ wallets through malicious software in fraudulent play-to-earn games, while crypto job scams impersonate recruiters to steal assets and personal data.
Broad Efforts to Combat Fraud
The crackdown is part of broader initiatives by the North American Securities Administrators Association, warning about the growing threat of crypto and social media scams. NASAA has highlighted the deceptive tactics used by fraudsters, reflecting concerns from California officials.
The collaborative efforts of DFPI and the California Department of Justice underscore the need for increased vigilance amid rising risks in the crypto landscape, urging consumers to be cautious and report suspicious activities.
