California regulators have launched a tool to help people who are hesitant to invest in crypto projects for fear of falling victim to fraud.
The California Department of Financial Protection and Innovation (DFPI) has unveiled a revolutionary tool to prevent investors from falling prey to potential crypto scams. The Los Angeles Times reports that DFPI launched its Crypto Scam Tracker on Thursday. On this searchable website, users can browse the collection of complaints the service has collected about potential crypto scams. The agency has reviewed the complaint submitted but has not verified it. The Los Angeles Times describes it: “it’s a bit like a database of verified angry Yelp reviews.”
Crypto Scam Tracker helps in three ways
Reports show that the fraud detector can help users in three valuable ways. In the first case, users can search for complaints about a company or website they are considering investing in or doing business with. A search will reveal if other people got a similar game and if they did, how it worked for them.
Second, the tracker has a search function for keywords that appear in a step that has been set to put. The keyword search function will allow users to look for similarities between a promotion they have received and what other customers have reported as scams. Users can, for example, search for the word “forex” if the quote includes foreign currency.
Finally, Crypto Scam Tracker includes a glossary that describes the vast array of scams perpetrated in the market.
A spokeswoman for DFPI, Elizabeth Smith, said:
We’ve heard from consumers that fraud alerts help them avoid similar scams,
Adding:
We hope this tool will be a resource for Californians to use before they are targeted or make financial decisions and will help Californians who fall victim to prevent future scams. We also want to encourage people to report scams — it helps keep all Californians safe.
Scam Tracker reveals patterns of behavior
Arguably one of the most valuable features of fraud trackers is that it reveals the behavior of crypto fraudsters. One of the most common scams are websites with names similar to a well-known crypto project or brand, with only a few minor changes in their spelling. These scams are known as “scam” sites according to DFPI and the most commonly reported scam:
The companies or websites mentioned may sound similar to the names of other companies or websites also operating in the market. When companies or websites (fake or not) have names that look or sound similar, 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.