Wisconsin Unveils Public Tracker to Combat Crypto Investment Scams

Ruholamin Haqshanas

Last updated:

July 31, 2024, 10:36 EDT | 2 min read

The Wisconsin Department of Financial Institutions (DFI) has launched a publicly accessible investment scam tracker in a bid to combat financial and crypto scams and fraud.

According to a report from the DFI, Wisconsinites fell victim to scams amounting to approximately $3.55 million between January 2022 and June 2024.

To prevent future losses, the newly unveiled tracker relies on consumer complaints to compile essential threat data, with the primary objective of ing the public about prent scams and making it increasingly challenging for scammers to deceive more investors.

Wisconsin Tracker Catalogs 22 Entries for Past Complaints

The tracker has already cataloged 22 entries sourced from past complaints, with a significant number of victims being lured into pig butchering schemes or fraudulent cryptocurrency trading platforms.

“Through our new investment scam tracker, combined with rigorous enforcement efforts, the DFI is committed to shining a light on these ruthless predators and protecting consumers and investors,” DFI Secretary Cheryll Olson-Collins said.

While the DFI refrained from verifying specific details and losses reported by complainants, the tracker serves as a vital tool to warn and safeguard crypto investors against potential threats.

Continuously updated and searchable by company name, scam type, or keywords, the tracker aims to empower individuals with information to make informed investment decisions.

Today @WIS_DFI announced it has launched an investment scam tracker to help Wisconsinites spot and avoid financial investment scams, including cryptocurrency scams. Learn more at: . pic.twitter.com/Pw7KrLFwP6

— Wisconsin Department of Financial Institutions (@WIS_DFI) July 30, 2024

Secretary Olson-Collins also cautioned citizens about the irreversible and untraceable nature of cryptocurrency transfers, advising against sharing money with unfamiliar online entities or granting them access to bank accounts or digital wallets.

By exercising caution and avoiding interactions with unknown parties promising unrealistic returns on crypto investments, Wisconsinites can reduce their susceptibility to falling victim to cryptocurrency scams.

FBI Warns About Rising Crypto Fraud

In March, the Federal Bureau of Investigation echoed similar sentiments, issuing a warning that stressed the importance of utilizing registered cryptocurrency money services businesses adhering to Know Your Customer and Anti-Money Laundering regulations.

At the time, the FBI said investment losses related to cryptocurrencies rose from $2.57 billion in 2022 to approximately $3.94 billion in 2023, representing a staggering 53% increase.

These losses accounted for the largest portion of investment fraud within the country, making up around 86% of the total investment fraud losses, which amounted to $4.57 billion for the year.

The FBI highlighted the alarming trend of victims falling prey to crypto scams, enticed by the promise of substantial returns on their investments.

“These scams are designed to entice those targeted with the promise of lucrative returns on their investments,” emphasized the FBI.

It is worth noting that one of the most prent types of crypto scams victimizing individuals is romance scams.

In this scheme, criminals adopt fake online identities and establish trust with victims before convincing them to send cryptocurrencies, only to vanish thereafter.

Chainalysis, a blockchain analysis firm, reported that romance scams alone were responsible for at least $374 million in suspected stolen crypto in 2023.

Phishing scams also posed a significant threat to crypto users, with over 324,000 individuals falling victim to such scams in 2023, resulting in the loss of approximately $295 million in digital assets.

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