The California Department of Financial Protection and Innovation (DFPI), in collaboration with the state’s Department of Justice (DOJ), has shut down 26 scam websites and uncovered over $4.6 million in consumer losses. 

The Crypto Scam Tracker, launched to help individuals identify and report fraudulent activities in the crypto space, has played a crucial role in exposing emerging scams. In 2024 alone, the tracker received 2,668 complaints from consumers across California and the U.S., leading to a doubling of scam alerts, with 303 issued warnings. The tool’s usage also surged, with over 400,000 unique visitors relying on it to verify potential threats.

DFPI Commissioner KC Mohseni emphasized the importance of vigilance in an evolving scam landscape. “As crypto scams evolve, DFPI’s Crypto Scam Tracker helps empower consumers to stay vigilant,” Mohseni stated. “It is a vital part of our enforcement strategy and role as a financial regulator, educator, and enforcement agency.” He urged consumers to be cautious when engaging with unknown platforms and to verify domains to avoid imitation scams, including fraudulent crypto recovery services.

California Attorney General Rob Bonta echoed this sentiment, highlighting the deceptive nature of online fraudsters. “Scammers can use deception and emotional manipulation to take advantage of people looking for connection,” Bonta said. “While there is much work to be done, I want to celebrate the hard work of my team, who took action to protect consumers by shutting down these fake cryptocurrency websites.” He also encouraged Californians to remain vigilant, warning against sending money to individuals they have never met in person.

The Crypto Scam Tracker has also identified seven new types of fraudulent schemes that have been increasingly used by scammers to defraud consumers. These include fake Bitcoin mining operations promising non-existent rewards, fraudulent play-to-earn crypto games designed to drain users’ wallets, and impersonation scams where fraudsters pose as recruiters offering fake job opportunities that require crypto payments or sensitive personal information.

Other newly identified scams include crypto wallet drainer attacks, where malicious websites trick users into interacting with fraudulent projects that siphon off their digital assets. Similarly, crypto giveaway and airdrop scams exploit social media platforms by impersonating well-known figures or companies to steal private keys. 

Fraudulent investment groups operating on WhatsApp and Telegram have also been flagged, luring victims into fake trades led by scammers posing as financial experts. Finally, AI investment scams have surfaced, with fraudsters claiming to use artificial intelligence and automated trading programs to guarantee high returns—only for victims to lose their money.

The DFPI has further strengthened its Scam Tracker with new features, including screenshots of actual scam interactions, giving users visual examples of fraudulent tactics. These images, submitted by consumers, provide a clearer understanding of how scams operate and help prevent further victimization.

Consumers who suspect they have encountered a scam or fraudulent activity are urged to report it immediately.