Golden State Today

California Attorney General Rob Bonta has taken action against fraudulent cryptocurrency websites, announcing the shutdown of 42 fake sites in 2024. These sites were involved in scams that deceived victims out of at least $6.5 million, with each victim losing an average of $146,306.

"As scammers grow increasingly sophisticated and calculated, so must our enforcement," said Attorney General Bonta. He emphasized the importance of vigilance and warned Californians not to send money to anyone they have not met in person.

The Department of Financial Protection and Innovation (DFPI) is also working to combat these scams. DFPI Commissioner KC Mohseni highlighted the role of the Crypto Scam Tracker in helping consumers remain cautious. "As crypto scams evolve, DFPI’s Crypto Scam Tracker helps empower consumers to stay vigilant," said Mohseni.

A common scam method involves a victim receiving a message from a scammer who gains their trust before directing them to invest money on a fake website. These sites show false investment growth, prompting victims to invest more before discovering they cannot withdraw their funds.

The California Department of Justice has identified ten "Red Flags" indicating potential fraudulent websites. These include impossible rates of return, lack of contact information, stolen images or content, fictitious addresses, offers of prizes or bonuses, inconsistent contact details, outdated website content, poor grammar or translation errors, and absence from industry listings like CoinMarketCap.com.

These guidelines were developed by the DOJ's Cybercrime Section as part of their efforts to tackle online crime alongside the DFPI.

Victims are advised to cease contact with scammers immediately and report incidents to local law enforcement or relevant authorities such as the California Department of Justice or the FBI’s Internet Crime Complaint Center (IC3).