California regulators crypto scam tracker Based on complaints from consumers and investors.
The database, available from the Ministry of Financial Protection and Innovation website, has 36 entries since its launch on 16 February.
The department’s list includes fraud with all kinds of cheating.
One of the most prominent is what Watchdog calls the “hog slaughter scam.” Think Tinder Swindler. “In this case, the scammer uses a variety of methods to establish a relationship (either social, romantic, or business focused) to gain the victim’s trust and provide the victim with a fraudulent investment opportunity. may be gradually introduced.”
In most of the cases (4 out of 5) on this site, people fell victim to this scam by trusting people they thought they knew to invest on their behalf. .
Other common cryptocurrency scams to watch out for
Phishing scam
- In May 2021, cybercriminals sent fraudulent emails to Binance users claiming their accounts were locked due to suspicious activity and asking them to click a link to unlock their accounts. The link led the user to a fake girlfriend’s Binance login page that looked just like the real one, but instead the user’s login credentials were stolen. (sauce: binance)
- Earlier this week, MetaMask warned users against Namecheap phishing emails. That email service after his provider, Namecheap, confirmed that his email account had been compromised on February 12th. (Source: Cryptoslate)
Ponzi scheme
- In 2019, the founder of cryptocurrency project BitClub Network was arrested for running a $722 million Ponzi scheme. The project promised investors high returns from mining cryptocurrencies, but in reality, the founders were using new investors’ money to pay out old investors.(Source: CNBC)
- That same year, OneCoin, a cryptocurrency launched in 2014 by Bulgarian-born businesswoman Ruja Ignatova, collapsed. In 2016, the Central Bank of Samoa issued a warning that his OneCoin was a pyramid scheme, and other countries such as Germany, Italy and Hungary also started investigating the project. In 2017, Bulgarian authorities raided his OneCoin headquarters and arrested several people associated with the project. As of February 2023, Ruja Ignatova remains missing and the fate of OneCoin investors remains unknown. (Source: CryptoSlate).
Fake exchanges and social media profiles
- In 2018, scammers created a fake version of the cryptocurrency exchange Binance and used Google Ads to promote fake sites that looked just like the real Binance site. Scammers stole user login credentials and funds. (sauce: next web)
- according to report Fraudsters have stolen $1 billion worth of cryptocurrencies since 2021, according to the US Federal Trade Commission (FTC), published in June 2022. The report also reveals that nearly half of all cryptocurrency scams are initiated through social media platforms.
malware attack
- 2017, WannaCry ransomware The attack infected hundreds of thousands of computers worldwide, including those used to mine cryptocurrencies. The attack required payment in Bitcoin, which was used to facilitate the transfer of funds to the attackers. (Source: BBC News)
- In 2020, there was a malware attack targeting users of the cryptocurrency wallet Electrum. The malware created a fake update asking the user to enter the private key, which was then stolen by the attacker. (sauce: ZDNet)
California’s new fraud tracker includes a search feature that allows it to proactively investigate potentially fraudulent websites and cryptocurrency ventures.
If any entity believes it has been unduly placed on the list, contact DFPI.
