Wisconsin launches new platform to protect residents from crypto scams
The Wisconsin Department of Financial Institutions (DFI) recently launched a new investment fraud tracking platform designed to help residents identify and avoid financial traps. According to DFI, Wisconsin residents lost a total of $3,540,878 to financial fraud and cryptocurrency scams from January 2022 to June 2024. These scams are often referred to as "hog slaughter" scams because the scammers spend a lot of time gaining the victim's trust before committing the scam.
"Scammers are taking advantage of the public's interest in crypto assets to exploit the most vulnerable Wisconsin residents," said DFI Secretary Cheryll Olson-Collins. "Through our new Investment Scam Tracker, combined with rigorous enforcement efforts, DFI is committed to exposing these ruthless predators." , protect consumers and investors.”
How investment fraud tracking platforms work
The new platform is a detailed resource based on consumer complaints designed to help the public identify potential investment scams. Details on the platform and reported losses have not been verified by DFI, but the information is being shared to alert the public. The tracker is updated regularly to keep people up to date on the latest scams. Users can search the tracker based on company name, fraud type or keywords to easily check whether investment opportunities are fraudulent.
Additionally, the tracker includes a glossary of common scam terms and a list of FAQs, as well as links to additional investor resources. DFI advises residents to exercise extreme caution when faced with investment opportunities, particularly those involving cryptocurrencies. Olson-Collins warns: “Keep in mind that cryptocurrency transfers can be untraceable and irreversible. Often, consumers only discover they have been scammed when they try to withdraw their investment funds. The Federal Deposit Insurance Corporation (FDIC) or any other No government agency will insure deposits in cryptocurrency interest accounts.”
Advice on preventing fraud
To protect themselves from scams, DFI advises residents not to give money to people they meet online, no matter how trustworthy they appear. Don’t give them access to bank accounts or digital wallets, don’t transfer money for them, don’t invest based on their advice or borrow money for them. Following these simple rules can help you avoid falling victim to a scam.
Another big threat is imposter scams, which involve fake companies or websites that look or sound like real companies to create confusion by using similar names to the real companies. To avoid these scams, DFI recommends first conducting research from trusted government sources before considering investing in any company.
The new platform was launched to increase public awareness of risks and provide a convenient channel for victims to report scams. With the rapid development of technology, fraud methods are also constantly evolving. This move by DFI is an important step in combating these emerging technology scams.
Cryptocurrency Scam Prevention and the Future
The new platform launched by the Wisconsin Department of Financial Institutions represents an important step in the state’s efforts to protect residents from cryptocurrency scams. In addition to these measures, DFI plans to increase cooperation with federal agencies and other states to combat fraud across state and international borders.
The launch of this platform, in addition to helping residents identify fraud, also helps to increase public awareness of financial security. As cryptocurrencies and other emerging technologies develop, so do scam tactics. The public needs to remain vigilant and constantly learn the latest fraud prevention knowledge to protect their property.