Wisconsin launches public tracker to fight crypto scams

Wisconsin is stepping up to protect its residents from crypto scams. The Wisconsin Department of Financial Institutions (DFI) has just rolled out an investment scam tracker to help people spot and avoid these financial traps. 

From January 2022 to June 2024, $3,540,878 was lost to financial grooming and crypto scams reported to the DFI. These scams are often called “pig-butchering” because scammers invest a lot of time gaining victims’ trust before they pounce.

DFI Secretary Cheryll Olson-Collins said that: 

“Scammers are in the shadows using the public’s interest in crypto assets to take advantage of the most vulnerable Wisconsinites. 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.”

How the investment scam tracker works

This scam tracker is a detailed resource based on complaints the DFI gets from consumers. The details and reported losses haven’t been verified by them, but they’re shared to alert the public. 

The tracker is updated regularly as new scams come up, so people can stay informed. You can search the tracker by company name, scam type, or keyword. This makes it easy to find out if an investment opportunity is a scam.

The tracker also includes a glossary of common scam terms and a list of frequently asked questions. Plus, there are links to more resources for investors.

The DFI advises residents to be extra cautious when approached with investment opportunities, especially involving cryptocurrency. Olson-Collins warns that: 

“Keep in mind, cryptocurrency transfers may be untraceable and irreversible. Often, consumers only discover they have been scammed when they attempt to withdraw their invested funds. Neither the FDIC nor any other governmental agency insures deposits in cryptocurrency interest-bearing accounts.”

To stay safe, the DFI says don’t give money to anyone you meet online, no matter how trustworthy they seem. Don’t let them access your bank account or digital wallet. 

Don’t transfer money for them, invest on their advice, or take out loans for them. Following these simple rules can help you avoid becoming a victim, according to the DFI.

Imposter scams are another big threat. These involve fake companies or websites that look or sound like real ones. They trick people by using names similar to real companies, creating confusion. 

To avoid these scams, the department recommends researching any company you’re considering investing in, starting with trusted government sources.