California shuts down 26 crypto scam sites, stopping $4.6M in fraud.

Over 2,668 complaints lead to 303 scam alerts in 2024. Scammers target job seekers with fake crypto job offers.

The California Department of Financial Protection and Innovation (DFPI) has shut down 26 crypto scam sites and stopped $4.6 million in fraud as part of an initiative to combat digital financial fraud and investor protection.

The apex bank disclosed that the operation was a collaboration with the California Department of Justice (DOJ). The campaign is part of a broader effort to protect consumers from financial fraud and promote financial inclusion.

The DFPI used its Crypto Scam Tracker platform to identify and investigate the fraudulent websites, which were diverting funds from unsuspecting members of the public. The initiative has faced a surge in complaints, with over 2,668 reports and 303 scam alerts issued in 2024 alone.

The platform, which launched last year, has reached over 400,000 users, highlighting the pressing need for such initiatives in the current digital landscape.

"We are committed to doing everything in our power to protect Californians from financial fraud," said Commissioner KC Mohseni of the DFPI. "Crypto scams are constantly changing, so it's important for everyone to stay informed and take precautions to protect their finances."

Mohseni urged consumers to verify the platforms they are using for financial transactions and to report any suspicious activity they encounter.

"Together, we can help prevent scammers from stealing money from hard-working Californians," Mohseni added.

Attorney General Rob Bonta highlighted the essence of these scams, which revolve around stealing money and employ both emotional manipulation and deception to swindle victims. He expressed his deep appreciation for the teams behind this case and urged the public to remain vigilant.

"Scammers are forging new types of fraud, which the DFPI Scam Tracker is now equipped to handle with its latest enhancements," Bonta noted.

Three new crypto scams have been identified: phony mining operations and fake gaming websites, while job schemes deceive those seeking employment and digital asset theft through wallet drain attacks are also being reported.

Additionally, new emerging scams include fraudulent investment platforms that use AI-based technology and deceitful online groups promoting fake investments.

The steps taken by California demonstrate its dedication to protecting consumers from fraudulent activities associated with crypto. Officials advise the public to be cautious regarding any investment opportunities encountered online and to report any suspect platforms they may come across.