California Regulatory Body Exposes Potential Crypto Scam Channels

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  • DFPI uncovers several crypto sites and brokers as potential breeding grounds for duping unwary customers.

The Department of Financial Protection and Innovation (DFPI) in the US state of California has identified some websites and brokers as probable avenues for perpetuating cryptocurrency scams. DFPI is a mechanism that improves the well-being of financial services, businesses, and products through constant supervision. At least 16 warnings were issued by the DFPI to its Internet audience during a two-day (December 27 and 28 2022) period.

Regularly, the agency would post random notifications with updates regarding its examination of business companies. A shred of evidence suggests that there has been an increase in the activity of cybercriminals posing as real towards the end of the year. DFPI is taking the necessary steps to inform and ensure that customers do not fall victim to such hoaxes. It is not known to distribute such a record number of messages at once, in the magnitude that it did.

California Regulatory Body Exposes Potential Crypto Scam Channels

It did something like this in June when it publicized nearly 30 notices, urging crypto users to beware of the activities of e-fraudsters.

DFPI’s Goal
The California regulator is motivated by a desire to safeguard digital currency traders from transactions that initially seem harmless. To lure the unwitting client into disclosing and investing their money in a fictitious firm, the con artist uses convincing acts of sympathy and manipulates them into becoming devoted to the idea of doing business with them.

Additionally, to facilitate withdrawals for unwary customers, the scammers demand a sizeable sum of money as processing costs. If the consumer falls for this scam, they are now at the mercy of the con artists who take everything they can from the assets of the exposed victim in addition to the purported withdrawal costs.

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