The increase in crypto related crimes has prompted the California Department of Financial Protection and Innovation (DFPI) to develop a digital scam tracker device. The assistive tracking device was launched on February 16 to enable the crypto investors to detect fraudulent activities.
The team behind the development of the crypto tracker utilized the information obtained from the 2022 California crypto crime report to develop the tracking system. The department revealed that the increase in the number of crypto crimes compelled the regulators to record the cases on the DFPI system.
California Regulators Battling Crypto Crimes
From 2022, the DFPI regulators recorded every reported fraudulent crypto activity on the department system. The obtained information was grouped into multiple categories for ease of identification of the case.
Mostly, the investors lamented that scammers lured them into deceptive business that exposed them to huge losses. The regulators revealed that the number of complaints related to crypto crime continued to increase over time.
An official from the California DFPI unit Clothilde Hewlett argued that the scammers adopted cunning strategies to exploit the crypto investors. Hewlett revealed that the regulators leveraged their positions to identify the scammers in 2022 targeting to sanction individuals contravening with California laws.
She revealed that most of the crypto crimes were conducted on social media platforms. The scammers were alleged to contact vulnerable Canadian investors on FaceBook, Twitter, Whatsapp, Instagram and TikTok.
Feature of the New Crypto Tracker
The February 16 report disclosed that the scammers have shifted to dating and romance sites to take advantage of California entrepreneurs. The report confirmed that 36 crypto crimes were listed on the new tracking system.
According to the regulator’s analysis the scammers are reported to develop unique strategies to acquire investors’ trust before dragging them to their deceptive schemes.
The regulators regretted that the Californian investors have become the victims of pig butchering scams. The regulators estimated that a four-fifth of the reported scam cases involved social engineering tactics where the victims lost their assets. The process involved disguised investing in fraudulent businesses led by high expectations of generating high returns on investments.
The DFPI department revealed that scammers launched innovative imposter websites to confuse the consumer between the official company websites and pseudo accounts.
Afterwards, a report from DFPI spokesperson Elizabeth Smith confirmed that affected consumers demanded the authority to invest in developing a system that alerts the investors on fraudulent activities. The new tracker provides the user search functionality for ease identification of crypto scams.
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