The "Wild West" of Finance
Since Governor Gavin Newsom’s 2022 Executive Order on blockchain technology, the DFPI has taken a central role in regulating the state's crypto market. However, the agency emphasizes that "crypto"—digital assets tied to a decentralized blockchain—remains a highly volatile investment class.
The DFPI warns Californians that unlike traditional bank accounts, crypto assets generally lack deposit insurance. If a platform fails or an account is hacked, there is often no government safety net to restore lost funds.
The Crypto Scam Tracker
To combat the rise in digital fraud, the DFPI launched the Crypto Scam Tracker, a first-of-its-kind database that aggregates real consumer complaints.
Before investing, Californians can search the tracker by company name, scam type, or keywords to see if a platform has been flagged by other users. The tool also educates users on specific fraud archetypes, including:
- "Pig Butchering": A long-con investment fraud where scammers spend weeks or months building a romantic or platonic relationship with a victim before convincing them to invest in a fake crypto platform.
- Imposter Scams: Fraudsters posing as trusted government agencies or well-known companies to demand payment in crypto.
Enforcement Actions
The DFPI does not just track scams; it actively enforces state law against bad actors. The agency has cracked down on Crypto Kiosk (ATM) operators for charging excessive fees and failing to provide required disclosures to customers. By monitoring these physical touchpoints, the agency aims to reduce the avenues fraudsters use to convert cash into untraceable digital assets.
How to Report a Scam
If you suspect you have been a victim of crypto fraud, the DFPI urges you to submit a formal complaint immediately. While the agency cannot guarantee the recovery of lost funds, reports are critical for triggering enforcement investigations and shutting down illegal operations.
Learn More
Crypto ATM Scams: Don’t Let Fraudsters Drain Your Wallet: Scammers are increasingly exploiting digital assets kiosks (commonly called crypto ATMs) to defraud individuals, particularly older adults.
Trends in Consumer Crypto Complaints: The DFPI’s Consumer Services Office (CSO) helps thousands of consumers each year to navigate the consumer complaint resolution process with the various financial institutions, companies, and products that DFPI regulates.
Protect Your Heart and Your Wallet from Romance Scams: Never send money or give personal information to anyone you have only communicated with online or by phone.
Investor Information: We have gathered together links to important resources to help you investigate before investing your hard-earned money.
Investment Scams – What Consumers Need to Know: This page is devoted to helping you protect yourself from investment cheats, with ways to help you avoid fraud, and find investment opportunities that offer real promise.