Authorities in California have identified a wave of new scams targeting cryptocurrency and artificial intelligence (AI) users.
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
$80,123.17
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.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
