The post California Regulator Warns Investors About 7 New Crypto and AI Scams appeared on BitcoinEthereumNews.com.

Fraudsters are using fake investment platforms, phishing attacks, and AI-generated endorsements to deceive victims. Scam losses reached billions, with pig butchering and phishing among the most damaging schemes. Canadian regulators also recently warned of frauds exploiting trade war fears, while Coinbase’s security chief, Philip Martin, called for a unified crypto scam reporting system in the US to improve enforcement and victim support. Rising Crypto and AI Scams Cost Investors The California Department of Financial Protection and Innovation (DFPI) identified seven new types of cryptocurrency and artificial intelligence-related scams that emerged in 2024. The regulator reported receiving 2,668 complaints from users who fell victim to fraudulent schemes, many of which were not previously recorded. Among these were fake Bitcoin mining investment schemes, where scammers lure victims with promises of high returns, and deceptive crypto gaming platforms that encourage users to deposit funds before draining their wallets. Other reported scams included fraudulent job offers requiring crypto transfers and private information, phishing attacks that steal private keys through fake airdrops, and fake investment groups operating on WhatsApp and Telegram. Additionally, AI investment scams promising unrealistically high returns have surfaced, while some users reported losing crypto after interacting with certain fraudulent websites. (Source: DFPI) The very quick growth of the AI industry certainly contributed to the expansion of cyber fraud. A rise in crimeware-as-a-service (CaaS) was also noticed, where skilled hackers and cybercriminals sell their tools to less experienced offenders, which only complicates law enforcement efforts even more. DFPI Commissioner KC Mohseni urged the public to be very cautious when dealing with unknown platforms and advised users to verify website domains to avoid fraudulent imitations. Through its state-level partnerships, the DFPI claims that it shut down more than 26 fraudulent crypto websites and uncovered $4.6 million in user losses over the past year. Meanwhile,…

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Filed under: News - @ March 11, 2025 9:25 am