California Regulator Launches Scam Tracker

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Bad actors have taken a number of actions to steal money. Initial coin offers (ICOs) or freshly released tokens/coins are being offered at prices that seem too good to be true amid a rise in scams that combine spoofing and phishing.

These frauds frequently target those who are new to the field and don’t understand the underlying technologies. Hence, they become open to deceptive tactics. Scammers use spoofing and phishing techniques to pass off their communications and websites as real ones. Whereas phishing includes deceiving the receiver into disclosing sensitive information, such as passwords or financial information, spoofing fabricates the sender’s identity. Convincing frauds are frequently made by combining the two strategies.

Scammers usually construct phony websites or social media pages that imitate real offerings regarding ICOs or freshly released tokens/coins. They could promise attractive returns on investment or provide the tokens/coins at prices attractively below market value. Investors who fall victim to these frauds risk losing their money or personal information.


Before investing in any ICO or freshly released token/coin, careful study and due diligence must be done to prevent being a victim of these frauds. This entails doing a background study on the project team and reviewing the technical documents and whitepaper to look for any issues or warning indications. Red flags include guarantees of profits or pressure to invest immediately.

Investors should also be cautious of unauthorized emails and communications. Before disclosing personal information or investing, they should always confirm the credibility of any website or social network account. This may entail examining the official domain name and looking for SSL certificates, and even checking the terms of service and privacy policy of the website.

Last but not least, it is critical to remember that if an investment opportunity looks too good to be true, it probably is. Each investment carries risks. Thus, it’s important to “do your own research” (DYOR). 

Regulator Steps Against Scams 

The California Department of Financial Protection and Innovation (DFPI) launched a tracker to aid traders and investors in identifying potential hazards to the sector to counteract the rising number of cryptocurrency frauds.

An online platform called the Crypto Scam Tracker enables investors to report alleged illegal activity using cryptocurrencies. Developed to support the California Department of Financial Protection and Innovation’s (DFPI) efforts to spot and follow fraudulent activity in the crypto industry. The name of the organization or person responsible for the scam, as well as the amount of money stolen, can be provided by users.

The DFPI will investigate such frauds and take action against the culprits using the data the Crypto Scam Tracker supplied. The program also informs users of typical cryptocurrency frauds and offers advice on preventing them.

Californians may use the program to “identify and prevent crypto frauds.” This serves as a database that clients and investors may search using keywords, scam kind, or firm name. The tracker lists alleged cryptocurrency frauds that have been discovered via an analysis of public complaints.

It enables investors and users in California to do due diligence and guard against harm to themselves and others.

First, two scams that were listed on the tracker comprised a total of 36 complaints.
First, two scams that were listed on the tracker comprised a total of 36 complaints. Source: DFPI

Also, the team sent a screenshot of DFPI Commissioner Clothilde Hewlett.

Screenshot shared by the DFPI team
Screenshot shared by the DFPI team

The regulator in California’s plan is crucial in safeguarding investors from cryptocurrency theft. Many investors are falling for shady schemes as cryptocurrency frauds get increasingly complex.

DFPI representative Elizabeth Smith stated:

“Our hope is that this tool will be a resource for Californians to use before they are targeted or make financial decisions and help Californians from falling prey to prevent future scams. We also want to encourage people to report scams — it helps us keep all Californians safe.”

Such actions are a start in the right direction toward increasing public awareness of the dangers of cryptocurrency investment, even providing investors the resources they require for self-defense.

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