The California Department of Financial Protection and Innovation (DFPI) reported an increase in innovative crypto and AI scams in 2024, receiving nearly 2,700 complaints. Notable scams include fake Bitcoin mining schemes and crypto gaming scams that entice users to invest only to lose their funds. Additionally, fake job offers requiring crypto transfers and private information were reported. Victims also experienced theft of private keys through phony airdrops and were misled by AI investment scams promising high returns. The DFPI shut down over 26 fraudulent crypto websites and uncovered significant user losses amounting to $4.6 million last year. Concurrently, California's Department of Justice dismantled 42 scam websites that resulted in a cumulative theft of $6.5 million, highlighting the persistent threat posed by international fraudsters. Common attributes of these scams included unrealistic promises of returns, lack of contact information, and no legitimate listings on recognized crypto platforms. As the AI market expands, these scams are expected to proliferate, urging users to remain vigilant and verify the legitimacy of platforms they engage with.

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