California Authorities Sound Alarm on Soaring Crypto and AI-Related Scams

Cryptocurrency and AI-driven fraud have gripped California—and much of North America—since early 2024, prompting warnings from the California Department of Financial Protection and Innovation (DFPI) and the Department of Justice (DOJ).

According to a recent press release, the DFPI received over 2,668 complaints from scam victims in the past year. Based on consumers’ submissions, authorities shut down 26 fraudulent websites and uncovered $4.5 million in losses.

“As scammers grow increasingly sophisticated and calculated, so must our enforcement,” Attorney General Rob Bonta said. “Scammers can use deception and emotional manipulation to take advantage of people looking for connection. While there is much work to be done, I want to take a moment to celebrate the hard work of my team, who took action to protect consumers by shutting down these fake cryptocurrency websites last year. I  urge Californians to be vigilant and protect their finances: Do not send money to anyone you have never met in person.”

Some of the fraudulent schemes listed by DFPI’s Crypto Scam Tracker include both old and new scams:

• Fake Bitcoin Mining Schemes: Fraudsters promise high returns on mining investments, only to abscond with deposited funds.
• Fraudulent Crypto Gaming Platforms: Users deposit cryptocurrency into online games (play-to-earn games) that abruptly vanish, draining user balances.
• Fake Job Offers: Criminals impersonate recruiters or legitimate companies, requiring crypto payment for “application fees” or “training.”
• Wallet Drainer Attacks: Scammers use malicious websites that trick users to interact with phony projects that steal their crypto assets.
• Fake Airdrops and Giveaways: Cybercriminals promote fake crypto giveaways to steal users’ private keys and wallet info.
• Investment Groups on Messaging Apps: Organized scam circles on WhatsApp and Telegram build trust before orchestrating large-scale theft.
• AI-Powered Investment Scams: Fraudsters leverage deepfake endorsements from public figures, peddling bogus tokens or investment services with “guaranteed” returns.

Protecting Yourself and Your Finances

• Be Skeptical of Unrealistic Promises. High returns with little or no risk are almost always red flags.
• Leverage Scam Detection Tools. With Bitdefender Scamio, our free AI-powered scam detection chatbot, you can immediately check if any correspondence, offers, websites, or QR codes are part of a scam or potentially scam-like. Bitdefender Link Checker is also a free tool that helps you scan suspicious links whenever and wherever you are.
• Verify Investment Platforms. Check whether a platform is registered or licensed. Always look for official domain names and legitimate contact information.
• Stay Informed and Vigilant. Regularly consult trusted sources like the DFPI’s Crypto Scam Tracker to learn about emerging threats.
• Report Scams. If you’ve been targeted by a scam or suspect fraudulent activity, report it immediately to local authorities, the DFPI, the Federal Trade Commission, and consumer protection agencies like the BBB.