California regulators have launched a tool to help people hesitant to invest in crypto projects over fears of falling victim to scams.
The California Department of Financial Protection and Innovation (DFPI) unveiled a revolutionary tool to prevent investors from falling victim to potential crypto scams. The Los Angeles Times reports that the DFPI launched its Crypto Scam Tracker on Thursday. On this searchable website, users can browse the collection of complaints the agency has collected about potential crypto scams. The agency has reviewed the complaint lodged but has not verified them. The Los Angeles Times describes it: “it’s a bit like a database of confirmed angry Yelp reviews.”
Crypto Scam Tracker Helps in Three Ways
Reports indicate that the scam tracker may help users in three valuable respects. In the first instance, users can search for complaints about a company or website they are considering investing in or doing business with. A search will reveal whether other people have received a similar pitch and, if they did, how it worked out for them.
Secondly, the tracker has a search function for keywords that appear in a pitch put to put. The keyword search function will allow users to look for similarities between a pitch they have received and what other customers have reported as scams. Users can, for instance, search the word “forex” if the offer involves foreign currency.
Finally, the Crypto Scam Tracker includes a glossary describing the vast array of scams perpetrated in the market.
A spokesperson for the DFPI, Elizabeth Smith, said:
We have heard from consumers that scam alerts help them avoid similar scams,
Adding:
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.
Scam Tracker Reveals Patterns of Behaviour
Arguably one of the scam trackers’ most valuable features is that it reveals the behavior of crypto fraudsters. One of the most common scams is sites with names similar to a well-known crypto project or brand, with just a few slight changes to their spelling. These scams are known as “imposter” websites according to the DFPI, and the most commonly reported scam:
The companies or websites listed may sound similar to the names of other companies or websites that also operate in the marketplace. When companies or websites (fake or not) have a look- or sound-alike names, the potential confusion created for consumers is real.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.