On the 16th of February 2023, the Department of Financial Protection and Innovation (DFPI) in California introduced a proactive tool to detect and deter crypto scams. The crypto scam tracker tool, as it’s called, helps citizens identify and steer clear of deceptive cryptocurrency schemes. This tool draws from public complaints to reveal scams across the crypto landscape.
The DFPI’s crypto scam tracker is a comprehensive and searchable database aggregating public complaints about fraudulent operations. This tool allows investors to identify potential scams using the company name, type of scam, or relevant keywords. While the tracker includes a crypto glossary that explains frequently used terms, it doesn’t offer exhaustive information about prevalent scams. Nevertheless, it equips users with enough insight to recognize scams and protect themselves.
The tracker’s data is sourced from public complaints, and the reported losses haven’t been independently verified. The DFPI updates the tracker as it receives new complaints, keeping investors updated about emerging scams. Victims of crypto scams or those aware of unlisted scams can report them to the DFPI online or via a toll-free call. Companies erroneously listed on the tracker can reach out to the DFPI for rectification.
Interestingly, the DFPI received over 2,668 complaints from investors within and outside California in 2024. Based on these complaints, the DFPI, in collaboration with the California Department of Justice, closed down more than 26 crypto scam websites and uncovered $4.6 million in consumer losses.
The scam tracker tool serves three primary purposes: due diligence, analysis of messaging, and education & prevention. For due diligence, the tool allows users to search for specific companies or websites to uncover existing complaints. For messaging analysis, users can search relevant keywords to discover patterns and similarities between the offers they have received and past complaints. For education and prevention, the tracker’s glossary serves as an educational resource, outlining various terms used in crypto scams.
The FBI’s 2023 Cryptocurrency Fraud Report revealed that California had the highest crypto-related losses in the US, totaling $1.15 billion. The FBI San Francisco Field Office’s jurisdiction saw losses of $260,313,902, affecting 1,226 victims across 15 counties.
California’s scam crypto tracker tool works by compiling scams reported directly by consumers. The tracker is segregated into five columns, including primary subject, complaint narrative, scam type, website, and screenshot. Users can adjust the order of the list and determine the number of entries they want to see at a time.
The crypto scam tracker exposes many fraudulent schemes in the crypto space, including pig butchering scams, rug pull scams, crypto job scams, wallet drainer scams, fraudulent trading platforms, imposter scams, and Bitcoin mining scams.
Other US agencies and states have also taken steps to raise crypto scam awareness. Federal agencies like the FTC and CFPB provide nationwide oversight and resources regarding the crypto space, while state-level initiatives offer localized support and specialized tools. However, industry leaders advocate for a unified platform that consolidates data and allows victims to track complaints. This proposed platform could significantly improve transparency and foster stronger accountability within the crypto space.
