Munzir HakimiTable of Contents
New Insights
Teh California Department of Financial protection and Innovation (DFPI) has reported a surge in new types of crypto and AI scams in 2024, with users filing over 2,600 complaints. This alarming trend highlights the evolving landscape of fraud as scammers adapt to exploit emerging technologies.
Emerging Scams
Types of Scams
In its recent findings, the DFPI identified seven new scam types:
- Fake Bitcoin Mining Schemes: Fraudsters lure victims with false investment opportunities.
- Crypto Gaming Scams: Users deposit funds only to have their wallets drained.
- Job Offer Frauds: Victims are tricked into transferring crypto for fake job applications.
Additionally, scams involving fake airdrops and high-return AI investments have become prevalent. The rise in crimeware-as-a-service (CaaS) allows inexperienced criminals access to refined hacking tools.
Regulatory Actions
The DFPI has taken important steps against these scams by shutting down over 26 fraudulent websites and recovering $4.6 million for victims last year. Commissioner KC Mohseni emphasizes the importance of verifying website domains to avoid falling victim to these schemes.
Statewide Efforts
DOJ Initiatives
California’s Department of Justice (DOJ) dismantled 42 scam websites that collectively stole $6.5 million from unsuspecting individuals. Common characteristics among these sites included promises of high returns without legitimate contact information or listings on recognized platforms like CoinMarketCap.
A report from Cyvers highlighted that pig butchering schemes cost the industry more than $5.5 billion across numerous cases,while CertiK’s security report flagged phishing attacks as a major threat costing users around $1 billion this year alone.
Final Thoughts
Stay Vigilant
As scams continue to evolve alongside technology, it is indeed crucial for consumers to remain vigilant when engaging with online platforms related to cryptocurrency and AI investments.
