Crypto scam tracker launched in Wisconsin amid rising criminal activity

The Wisconsin Department of Financial Institutions has launched a fraud monitoring system to protect investors from cryptocurrency and investment scams.

This tracking tool aims to help Wisconsinites detect and avoid fraudulent schemes, including crypto scams, by providing 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 manipulation and cryptocurrency scams, commonly referred to as “pig slaughter.”

“Scammers are using the public’s interest in crypto assets to take advantage of the most vulnerable Wisconsinites,” said DFI Secretary Cheryll Olson-Collins.

Pig slaughter or romance scammers build trust with their victims before tricking them into making large investments. Scammers fake interest in gaining their victims’ trust and eventually convince them to invest in scam schemes, usually involving cryptocurrency. Once the victim invests, the scammers disappear with the money, often trying to get the victim to invest more before disappearing.

Tracking details

The tracker, which will be continually updated, allows users to search for company names, scam types, or even keywords. It includes an FAQ section, a glossary of investment scam terms, and links to additional resources.

While DFI does not confirm the exact details of the complaints, the information is made public, making it harder for scammers to deceive investors.

Olson-Collins warned residents to be extremely cautious 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, and stressed that due diligence and skepticism are crucial to preventing scams.

“To be safe, never give money to anyone you meet online or give them access to your bank account or digital wallet. Don’t wire money in their name, don’t invest your own money on their advice, and don’t take out a loan in their name. If you follow these rules, you’re less likely to fall victim to a cryptocurrency investment scam,” Olson-Collins said.

With scams where fake companies impersonate genuine companies on the rise, the DFI has urged the public to verify companies through reliable government sources before investing.