AI and Crypto Scams Surge: California Regulators Identified New Fraud Tactics

According to a 10 March statement, the California Department of Financial Protection and Innovation (DFPI) handled 2,668 complaints in 2024, revealing several scam types that had not been previously reported.

Among them were fake Bitcoin BTC $83,175.10 mining schemes, where criminals promote investment opportunities in mining operations that do not actually exist.

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There have also been scams involving fake airdrops, where victims unknowingly give away their private keys, losing access to their funds. Fraudsters have also been operating in group chats on WhatsApp and Telegram, luring users into fake investment communities.

Other scams include fraudulent crypto gaming platforms, which trick users into depositing funds only to wipe out their wallets. Some scammers pose as employers, offering fake job opportunities that require applicants to send cryptocurrency or share private details.

Meanwhile, AI-driven investment scams promise unusually high returns but result in complete losses for those who invest. The AI industry saw growth in 2024, reaching a $638 billion market cap. This rise has also led to an increase in crimeware-as-a-service (CaaS)—a growing market where skilled hackers sell tools to others looking to commit fraud.

California regulators have been working to shut down fraudulent websites, blocking over 26 scam sites and exposing $4.6 million in user losses in 2024. The California Department of Justice (DOJ) has also taken action, closing 42 crypto scam websites responsible for stealing $6.5 million from victims.

Recently, scammers stole $1.2 million in crypto from residents of Kent, England. How did they pull it off? Read the full story.