Beware Crypto Scammers Using DFPI’s Name, Department Says

The California Department of Financial Protection and Innovation (DFPI), a key state regulatory department, is warning the public that scammers are using the agency’s name as part of a ruse.

The scammers, pretending to represent DFPI and the Canadian Securities Administrators (CSA), are claiming that they’re holding the target’s crypto asset “cold wallet” — and demanding payment of fees in order to release the funds.

DFPI is warning the public that it does not conduct this type of activity; nor does it keep “cold wallets” related to crypto assets. A “cold wallet,” also known as a cold storage solution, is a device that protects users’ crypto holdings by generating and storing their private keys offline, according to Blockworks.co.

According to a DFPI news release: “The scammers have provided victims a form with the DFPI’s logo and office address. The scammers have used the names ‘Felix Frost’ and ‘Benjamin Arnold Maguire,’ and the email address transaction.support.rmca@proton.me.

“The DFPI urges consumers and businesses to exercise extreme caution before responding to any solicitation that (asks) for personal information or payment,” the statement reads. “To check whether a form you receive is a legitimate DFPI form, users may contact the Consumer Services Office at ask.dfpi@dfpi.ca.gov or call toll-free at (866) 275-2677.”

DFPI notes that it “oversees a host of financial products and services,” and it “continuously monitors developments in crypto asset business models and carefully reviews consumer complaints about crypto assets. Please reach out to the Crypto Oversight Unit at crypto@dfpi.ca.gov.”

DFPI was founded in 2013 as a successor agency to the state Department of Financial Institutions, the Department of Corporations and the Department of Business Oversight. It’s part of the California Business, Consumer Services and Housing Agency, and its strategic plan is available online.