In a bid to mitigate the occurrences of scams within the industry, authorities in California have unveiled a crypto scam tracker. The Department of Financial Protection and Innovation in California (DFPI) announced the development in its latest press release. According to the agency, the tracker will help investors to identify possible threats within the industry.
It is noteworthy that the crypto scam tracker is coming on board following rising complaints of fraudulent activities in the sphere by users. As revealed, the department collated a list of crypto-related grievances from victims who claim to have been scammed or have identified attempted scams.
According to the Department of Financial Protection and Innovation, the complaint listed contained the description of the losses incurred in transactions as observed by victims and other vital information. However, the department noted that it had not verified any of the scam listed. But, it confirmed the receipt of thousands of consumer and investor complaints about crypto scam every year.
Meanwhile, the California Department of Financial Protection and Innovation Commissioner, Clothide Hewlett has reacted to the launch of the crypto scam tracker. Hewlett lamented the increasing rate of fraudulent activities in the crypto industry. According to the commissioner, scammers are taking undue advantage of the increasing interest in cryptocurrencies to swindle them. He further that these scammers usually carry out these activities in the shadow.
Hewlett reiterates the commitment the department in eliminating these “ruthless predators” and protect consumers and investors. The commissioner further noted that the new crypto scam tracker comes with strict enforcement mechanisms.
More crypto scams unfolding on social media – DFPI
As of now, the California crypto scam tracker consists of 36 complaints. Notably, a larger percentage of the complaints indicated that the scammers carry out the illicit act through social media. Reportedly, some of these apps include Facebook, WhatsApp, Instagram, Tiktok, and dating apps. More so, the agency also identified a new scam technique identified as “pig-butchering scams.” In this kind of fraudulent act, the scammer builds and sustain social relationship and trust with the victim before swindling the fellow. Furthermore, the department identified imposter websites as one of the commonly reported scams. Usually, crypto scam perpetuators, in some instances, create fake websites of a particular crypto firm to deceive its users. However, with the new tracker, it is expected that the rate of crypto scams will be drastically reduced.