The California Department of Financial Protection and Innovation (DFPI) has joined forces with the California Department of Justice (DOJ) to combat cryptocurrency scams, successfully shutting down more than 26 fraudulent websites and uncovering $4.6 million in consumer losses.
Announced on March 10, the operation was made possible through the DFPI’s Crypto Scam Tracker, a tool developed to identify and expose emerging scams that threaten consumers.
The DFPI reported that in 2024 alone, the Crypto Scam Tracker recorded over 2,668 consumer complaints from California and the United States. This surge in reports has identified seven new types of crypto scams, highlighting the ever-evolving nature of online fraud. Emphasizing the importance of consumer vigilance, DFPI Commissioner KC Mohseni urged the public to carefully verify website domains and exercise caution when interacting with unfamiliar platforms. Mohseni described the Crypto Scam Tracker as a critical component of the state’s enforcement strategy to safeguard residents from financial exploitation.
Attorney General Rob Bonta commended the collaboration between the DFPI and the DOJ, noting that scammers are becoming increasingly sophisticated and calculated in their tactics. He called on Californians to remain vigilant by reporting suspicious activities to the DFPI and avoid sending money to individuals or entities they have never met. Bonta stressed that protecting personal finances requires heightened awareness amid growing risks.
The newly identified scams include Bitcoin mining scams that entice victims to invest in fake mining operations with false promises of shared rewards. Crypto gaming scams drain users’ wallets through malicious software embedded in fraudulent play-to-earn games, while crypto job scams involve impersonating recruiters to steal assets and personal information.
The crackdown on crypto scams is part of broader initiatives by the North American Securities Administrators Association (NASAA), which has warned about the growing threat of cryptocurrency and social media scams. NASAA highlighted the deceptive tactics used by fraudsters, reflecting concerns from California officials.
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