California Unveils New Crypto Tracking Site To Fight Crypto Scams
The Bitcoin logo is seen on a Coinstar cryptocurrency ATM at a grocery store in Washington, DC on January 19, 2023. (STEFANI REYNOLDS/AFP via Getty Images)
The California Department of Financial Protection and Innovation (DFPI) launched the DFPI Crypto Scam Tracker, a new website designed to help Californians detect and avoid crypto scams.
“Scammers are in the shadows and are using the public’s interest in crypto assets to take advantage of the most vulnerable Californians,” DFPI Commissioner Clothilde Hewlett said in a statement.
“Through the new Crypto Scam Tracker, combined with rigorous enforcement, DFPI is committed to shining a light on these ruthless predators and protecting consumers and investors.”
Launched on February 16, the tracker is a searchable database by company name, scam type or keyword, allowing Californians to learn more about the complaints the department has received on specific cryptocurrency websites.
The database will be continuously updated to alert the public to new crypto scams, says a press release.
The most common crypto scams are “fraudulent” websites, according to the DFPI. “When companies or websites (fake or not) have similar or similar names, the potential confusion created for consumers is real,” the press release said.
“Attempting to take advantage of such confusion is a tactic used by some bad actors looking to profit from unsuspecting consumers.”
For example, the search result for “Coinbase” showed several cases where people lost thousands of dollars by investing in fictitious websites that resembled the actual coinbase website.
In one case, one “victim met a person on WeChat who convinced her to invest in cryptocurrency mining. The victim followed the scammer’s instructions to transfer $12,000 to a cryptocurrency exchange and then to the website coinbase.iii36.vip to begin mining,” it said on the website.
The victim tried to withdraw money from her account but was told she would have to wait 24 hours. Soon after, she noticed that all of her cryptocurrency had been transferred from her crypto wallet.”
To avoid these scams, officials encourage the public to report cases of crypto fraud to the department by calling (866) 275-2677 or by filling out a complaint to DFPI online.
