Crypto Scam Tracker Launch
A state-level crypto scam monitoring system has been introduced in the State of California by the Department of Financial Protection and Innovation (DFPI).
The system introduced by DFPI has been named ‘Crypto Scam Tracker’ whose purpose is to monitor and identify crypto scams.
DFPI stated that the tracker has been developed based on the data collected from the innumerable variety of consumer complaints.
State-level authority further explained that the tracker would help crypto consumers in carrying out due diligence on their own for preventing scams.
Design of Crypto Scam Tracker
The tracker introduced by DFPI is a digital app that consists of a plethora of databases and information pertaining to scams. For instance, the data consists of keywords, specific names of entities, types of scams, etc.
The purpose of this database is to enable users to get know-how with regard to crypto consumer complaints submitted with DFPI.
According to DFPI, the tracker has been specifically designed on the basis of complaints received at the end of DFPI every year.
Since DFPI is the authority concerned with financials and innovation, the consumers based in California file their related complaints with it.
Each year there have been thousands of complaints and most of them relate to crypto scams, frauds, etc.
Subsequently, DFPI decided to design a tracker which can help users in spotting the scam before falling into the trap.
The tracker, therefore, contains information only regarding crypto scams and does not account for the number of losses suffered by consumers.
Trackers Provide For a Feature Called “Glossary”
Within the tracker, an extraordinary feature called ‘Glossary’ has also been introduced. This feature is designed to assist users in making themselves aware and educate regarding common and uncommon types of scams.
DFPI has further assured us it updates the tracker as soon as it will come to know about new data that has been made available to the authority.
Regular updates of the tracker would further enhance the crypto scam alert mechanism for public safety. This way, the regulators will have more visibility about the data flowing through the cryptocurrency systems.
They will be able to track the movement of funds and see where exactly the funds are being moved and what action is due on the particular breaches.
Clothilde Hewlett, the Commissioner of DFPI, explained that scammers are everywhere and that they have been hiding in the shadows.
The Commissioner further noted that scammers were victimizing Californians because the awareness and education were not there.
They have taken it upon themselves to ensure that the people are well aware of the scams and frauds taking place in the region.
‘With the help of crypto scam tracker, Californians can overcome their vulnerabilities when getting involved with digital assets’, emphasized Commissioner Hewlett.
Not the First of Its Kind
It may however be noted that this isn’t the first of its kind crypto scam tracker. As a matter of fact, plenty of crypto scam alerts and monitoring tools are available in the market.
For instance, two of the most popular trackers used by global investors are Scam Alert and Bitcoin Abuse. Both trackers are highly efficient yet scammers have been able to bypass them easily.
Every year, the losses suffered at the hands of scammers are doubling while scamming activities also are continuously increasing.
Furthermore, there has been a recent report regarding scam revenue which is compiled by a crypto analytical body called ‘Chainalysis’.
In this report, Chainalysis has claimed that crypto scam revenue has reduced almost by 46% in the past year.
It noted that in 2021, crypto scam revenue accounted for over $10.9 Billion, however, in 2022, the total losses were less than $6 Billion.
However, this significant decline hasn’t been attributed to the effectiveness of crypto scam trackers by Chainalysis. Instead, the decline was because of the severe crypto winter season which slashed the global crypto economy in 2022.
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