California Financial Regulator Warns of 7 New Crypto and AI Scam Modes!

Jakarta, Pintu News—The world of crypto and artificial intelligence AI->Current AI PriceRp 0Market Cap-Trading Volume-Circulating Supply- is growing, but so are the fraud schemes associated with it. California’s financial regulator, the Department of Financial Protection and Innovation (DFPI), has just warned of seven new types of scams that have never been recorded before.

Based on 2,668 reports received throughout 2024, many victims lost funds due to fake Bitcoin mining, AI investment schemes, and crypto recovery sites that scam users.

In addition, the California Department of Justice DOJ->Current DOJ PriceRp 0Market Cap-Trading Volume-Circulating Supply- has shut down 42 crypto scam sites, causing victims to lose IDR 106.2 billion ($6.5 million).

Check out the full news below!

Emerging Crypto and AI Fraud Types in 2024

As reported by Cointelegraph, the DFPI’s March 10, 2025 report revealed various new modes fraudsters use to target victims in the crypto and AI world. Here are some of the most reported forms of fraud:

1. Fake Bitcoin Mining
   The perpetrators offer investments in fake Bitcoin BTC->Current BTC PriceRp 0Market Cap-Trading Volume-Circulating Supply- mining platforms, promising huge profits without risk. However, once the funds are in, the victim never makes any profit and cannot withdraw their money.
2. Fake Crypto Game Scheme
   This involves fake crypto gaming platforms that ask players to deposit funds to purchase in-game items or tokens. Once the deposit is made, the player’s balance is irretrievably lost.
3. Crypto-based Fake Jobs
   Scammers pose as reputable companies offering crypto-based jobs, but require prospective workers to transfer a certain amount of cryptocurrency as “collateral” or share their personal information, which is then misused.
4. Fake Airdrop to Steal Private Keys
   Several users reported losing their assets after participating in a fake airdrop. The perpetrators sent a link asking users to connect their crypto wallets, which was a trap to steal the victim’s private keys.
5. Fake Crypto Investment Groups on WhatsApp and Telegram
   The perpetrators created groups on WhatsApp and Telegram, claiming to offer high-return crypto investments. However, once the victim sends funds, the group admin disappears, and the funds vanish.
6. AI Investment Schemes with Unreasonable Returns
   As the AI industry grows, many schemes claim to use artificial intelligence to generate huge profits in a short period of time. However, once funds are sent, investors never get the promised returns.
7. Fake Crypto Recovery Sites
   Some victims who lost their crypto have been duped twice by using fake crypto asset recovery services. The perpetrators ask for an upfront fee to help victims recover their funds, but trick them further.

Also read: Radworks (RAD): A New Innovation in the Software Development World!

Crypto Fraud Increases, Losses Reach Trillions of Rupiah

The DFPI and the California Department of Justice (DOJ) have also been cracking down on various crypto fraud schemes. Throughout 2024, the DOJ successfully shut down 42 fraudulent websites, which collectively caused IDR106.2 billion ($6.5 million) in losses with the average victim losing IDR2.4 billion ($146,306) per person.

Most of these sites have a common pattern, such as promising huge profits, having no official contacts, and offering rewards for users who sign up. Unfortunately, as many perpetrators operate internationally, they are difficult to trace and prosecute.

Read also: New Breakthrough, Fidelity Presents Ethereum ETF with Staking Feature!

Crypto and AI Are Growing, but Threats Are Too

The growth of the AI industry to reach a market capitalization of IDR10,425 trillion ($638 billion) by 2024 is also attracting the attention of hackers. One rising threat is Crimeware-as-a-Service (CaaS), where professional hackers sell cybercrime tools and services to other criminals for a price.

In addition, a report from blockchain security firm CertiK shows that crypto phishing will be the biggest threat in 2024. In 296 recorded cases, these attacks cost users up to IDR 16.3 trillion ($1 billion).

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Cointelegraph. California financial regulator warns of 7 new types of crypto, AI scams. Accessed March 12, 2025.
• Featured image: Generated by Ai