Quick Facts
- The California Department of Financial Protection and Innovation (DFPI) warned of 7 new types of crypto and AI scams.
- The DFPI received over 2,668 complaints in 2024.
- Victims reported losses of thousands of dollars.
- The AI industry experienced significant growth in 2024, reaching a market cap of $638 billion.
- The California Department of Justice (DOJ) took down 42 crypto scam websites in 2024 that stole $6.5 million from victims.
The Rise of New Crypto Scams
According to a statement by the DFPI, the California regulator received over 2,668 complaints in 2024, with 7 new types of scams that had not been seen before. These scams include fake Bitcoin mining schemes, where fraudsters offer fake investments in mining; fake crypto gaming schemes, where users are encouraged to deposit funds only to have their wallets drained; and fraudsters offering fake jobs that require victims to transfer crypto and provide private information.
The scams also involve theft of private keys through fake airdrops, fake investment group scams in WhatsApp or Telegram, AI investment scams offering unusually high returns, and losing crypto after interacting with certain sham websites. The impact of these scams is significant, with victims reporting losses of thousands of dollars.
AI Industry Growth and the Rise of Crimeware-as-a-Service
The AI industry experienced significant growth in 2024, reaching a market cap of $638 billion, according to Precedence Research. However, this growth has also led to an increase in the number of cybercriminals using AI to launch attacks. The rise of crimeware-as-a-service (CaaS) has made it easier for hackers to launch attacks, and has also led to an increase in the sophistication and frequency of these attacks.
California DOJ Shuts Down 42 Crypto Scam Websites
In related news, the California Department of Justice (DOJ) took down 42 crypto scam websites in 2024 that stole $6.5 million from victims, with an average loss per person of $146,306. These scam websites promised high returns, had no contact information, and were not listed on legitimate crypto industry websites such as CoinMarketCap.
Common Threads Among Scams
According to the California DOJ, common threads among the scam websites were promises of high returns, no contact information, offers of prizes for signing up, and no listings on legitimate crypto industry websites such as CoinMarketCap. These scams often target unsuspecting victims who are looking to invest in cryptocurrencies but lack the knowledge and experience to spot a scam.
Staying Safe in the Digital Landscape
So, how can you stay safe in today’s digital landscape? Here are some expert tips:
- Be cautious when interacting with unknown platforms and always verify website domains to avoid fraudulent imitations.
- Stay wary of crypto recovery scam sites and never send crypto to unknown or untrusted addresses.
- Use strong passwords and keep your software up to date.
- Avoid using public Wi-Fi or public computers to access your crypto accounts.
- Monitor your accounts regularly and report any suspicious activity to the authorities.
Additional Resources
For more information on crypto and AI scams, check out the following resources:
- Cointelegraph’s Crypto Scams article: This article provides a comprehensive guide to crypto scams and how to stay safe.
- Cointelegraph’s AI Scams article: This article explores the rise of AI scams and how to avoid them.
- California Department of Financial Protection and Innovation (DFPI) website: The DFPI website provides information on crypto and AI scams, as well as resources to help consumers report scams and stay safe.
