MADISON, Wis. – The Wisconsin Department of Financial Institutions (DFI) has launched an investment scam tracker it said is designed to help Wisconsinites spot and avoid financial investment scams, including cryptocurrency scams.
“These scams, frequently called ‘pig-butchering’ or ‘financial grooming’ due to the amount of time the perpetrators are willing to invest in gaining the investor’s trust, are devastating,” the Wisconsin DFI said.
It noted that between January 2022 and June 2024, $3,540,878 in such losses were reported to the DFI from financial grooming and cryptocurrency fraud.
The investment scam tracker includes descriptions of fraudulent or deceptive scams, based on consumer complaints, reported to the DFI.
Ongoing Updates
“The factual details and losses reported by complainants have not been verified by DFI, but they are being shared in the tracker to alert the public to potential threats and make it harder for perpetrators to deceive more investors,” the DFI stated, adding that as new investment scams emerge, the DFI will update the tracker on an ongoing basis.
The investment scam tracker is searchable by company name, scam type, or keyword, and it includes a list of frequently asked questions, a glossary of common investment scam related terms, and links to additional investor resources.
The department noted that imposter scams are among the most reported and often the most difficult for consumers to detect.
Advice for Members
It announced, using messaging credit unions themselves could pass along to their members, that “With these scams, unlicensed or fictitious companies lure unsuspecting individuals to their websites using names that sound similar to those of other legitimate companies or websites in the marketplace. When companies or websites (fake or not) have look- or sound-alike names, the potential confusion created for consumers is real. Attempting to take advantage of such confusion is a tactic employed by some bad actors looking to profit from unsuspecting consumers. The best way to avoid falling victim to a phony company or website is to do research on the company starting with a trusted government source or government website before investing money.”