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The Wisconsin Department of Financial Institutions (DFI) has introduced a scam tracker to safeguard investors from crypto and investment fraud. This tracker assists Wisconsinites in recognizing and avoiding fraudulent schemes by offering detailed descriptions of deceptive practices based on consumer complaints.
Between January 2022 and June 2024, over $3.5 million in losses were reported due to financial grooming and cryptocurrency fraud, often referred to as “pig-butchering.”
“Scammers are in the shadows using the public’s interest in crypto assets to take advantage of the most vulnerable Wisconsinites,” stated DFI Secretary Cheryll Olson-Collins.
Perpetrators of pig-butchering or romance scams build trust with their victims before deceiving them into making substantial investments. These fraudsters fake an interest to gain victims’ trust, eventually convincing them to invest in fraudulent schemes, often in crypto. Once the victim invests, the scammers disappear with the funds, often pressuring the victim to invest more before vanishing.
The DFI has launched an investment scam tracker to help Wisconsinites spot and avoid financial investment scams, including cryptocurrency scams.
Tracker Details
The tracker, which will be updated continually, allows users to search company names, scam types, or even keywords. It includes a FAQ section, a glossary of investment scam terms, and additional resources to educate the public.
While the DFI does not verify the factual details of the complaints, the information is shared with the public, making it more challenging for scammers to deceive investors.
Olson-Collins cautioned residents to exercise extreme caution with investment offers, especially those involving crypto, as these transactions can be untraceable and irreversible. She advised against giving money or access to financial accounts to anyone met online, stressing that due diligence and skepticism are crucial in preventing fraud.
“To be safe, do not give money to anyone you meet online, or allow them access to your bank account or digital wallet. Do not transfer money on their behalf, do not invest your own money on their advice, and do not take out a loan for them. If you follow these rules, you are less likely to be a victim of a cryptocurrency investment scam,” Olson-Collins said.
With the rise of imposter scams, where fictitious companies mimic legitimate ones, the DFI urged the public to verify companies through trusted government sources before investing.
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