The California Department of Financial Protection and Innovation (DFPI) released a statement on March 10, highlighting the discovery of seven new types of cryptocurrency and artificial intelligence (AI) scams reported by users in 2024. Among the scams identified were fake Bitcoin mining schemes, fraudulent crypto gaming platforms, and deceptive job offers requiring crypto transfers and personal information. Victims also reported theft of private keys, fake investment group scams, AI investment scams promising high returns, and losses due to interacting with fraudulent websites. The AI industry witnessed significant growth in 2024, reaching a market cap of $638 billion, as reported by Precedence Research. Additionally, there was a rise in crimeware-as-a-service (CaaS), where seasoned hackers offer tools and services to less experienced cybercriminals. DFPI Commissioner KC Mohseni advised caution when dealing with unfamiliar platforms, emphasizing the need to verify website domains to avoid scams. Through collaboration with the State, DFPI shut down over 26 fraudulent crypto websites and uncovered $4.6 million in user losses last year. In a related development, the California Department of Justice (DOJ) closed down 42 crypto scam websites in 2024, which defrauded victims of $6.5 million, with an average loss of $146,306 per person. The DOJ highlighted common traits of these scam websites, including promises of high returns, lack of contact information, incentives for signing up, and absence from reputable crypto industry platforms like CoinMarketCap. International fraudsters behind these scams pose challenges for prosecution and arrest due to jurisdictional issues. A report by Cyvers identified pig butchering schemes as a costly scam in 2024, causing over $5.5 billion in losses. CertiK’s Web3 security report flagged crypto phishing attacks as the most significant security threat, costing users $1 billion across 296 incidents in 2024.