Wisconsin Department of Financial Institutions Launches Investment Scam Tracker

Wednesday, July 31st, 2024 -- 10:00 AM

The Wisconsin Department of Financial Institutions (DFI) announced that it has launched an investment scam tracker 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, between January 2022 and June 2024, $3,540,878 in losses were reported to the DFI from financial grooming and cryptocurrency fraud.

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

“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.”

The investment scam tracker includes descriptions of fraudulent or deceptive scams, based on consumer complaints, reported to the DFI. 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.

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.

“Wisconsin residents should exercise extreme caution before responding to any solicitation offering investment or financial services, especially if it involves cryptocurrency. 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,” said DFI Secretary Olson-Collins.

“To be safe, do not give money to anyone you meet online, or allow them access to your bank account or digital wallet. Do not transfer money on their behalf, do not invest your own money on their advice, and do not take out a loan for them. If you follow these rules, you are less likely to be a victim of a cryptocurrency investment scam.”

Imposter scams are among the most reported and often the most difficult for consumers to detect. 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.

If you hear of an investment scam that is not listed on the investment scam tracker, please notify the DFI by filing a complaint. If you believe you have been a victim of investment fraud, please report it to the DFI’s Division of Securities by emailing [email protected] or calling (608) 266-2139. Do not be ashamed. Anyone can be the victim of fraud.

Feel free to contact us with questions and/or comments.