By Michael Scott
California’s residents will benefit from a cryptocurrency scam tracker launched by the Department of Financial Protection (DFPI). According to the regulator, it will enable them to identify and avert cryptocurrency fraud. Further, it stated that owing to the emergence of crypto scams, the tracker will be updated to warn and safeguard citizens instantly.
California Crypto Scam Tracker
Last week, California’s DFPI announced the introduction of a Crypto Scam Tracker meant to aid residents in identifying and averting crypto frauds. According to the regulator, this invention draws up clear scams established via an assessment of grievances submitted by the public. Additionally, it permits both customers and investors to conduct research and avert danger.
The Crypto Scam Tracker entails a database that allows users to get more information concerning all the grievances received by the DFPI. Each year, a significant number of complaints from both investors and consumers are presented to the regulator. The information in the tracker depends on all the data the users provide. DFPI explained that it is yet to authenticate all the losses presented to it.
Safeguarding Customers and Investors from Crypto-related Fraud
The regulator also stated that the tracker comprises a glossary to ensure a better understanding of the most common scams. The emerging reports of crypto frauds will ensure a quick update of the tracker, ultimately guaranteeing citizens’ protection.
Clothilde Hewlett, DFPI Commissioner, stated that scammers hide by exploiting the customers’ curiosity and appetite for high-yield crypto assets. The executive regretted that most of the susceptible citizens fall prey to scammers.
Fight Against Crypto Fraud is Work in Progress
Introducing a crypto scam tracker will complement DFPI’s enforcement initiatives to eliminate ruthless predators. Its accomplishment will help safeguard the investors and consumers often susceptible to rogue operators seeking to defraud the public.
Scam Alert and Bitcoin Abuse are current and widely-known trackers that avert crypto-related fraud. Last week, Chainalysis produced a report indicating that in 2022, incomes attributed to crypto scams were reduced by 46 percent to 5.9 billion dollars. This is a drop from the previous year when the scammers realized $10.9 billion.