WBK Industry News - Federal Regulatory Developments

CFPB Complaint Bulletin Analyzes Crypto Asset Complaints Since 2018

The CFPB recently published its November 2022 Complaint Bulletin analyzing consumer complaints related to crypto assets.  The Bulletin notes that between October 2018 and September 2022 more than 8,300 such complaints were submitted to the CFPB, with the largest numbers of complaints originating in California, Florida, New York, and Texas.

Since 2018, the Bulletin notes that 40% of consumer complaints were related to alleged frauds and scams, while 25% were related to transactional issues.  Roughly 16% addressed the unavailability of funds when promised, and 12% related to other servicing problems.

Some of the issues outlined in the Bulletin include whether crypto-asset platforms are making adequate efforts to identify and/or prevent fraudulent transactions, scammers who pose as individuals who have achieved financial successes using crypto assets, individuals posing as customer service personnel, and hacking unsecured customer accounts.  A number of these scams target older consumers and military service members.  A common problem across these fraud and scam scenarios is the lack of reliable corporate customer service assistance or other remedies.

The Bulletin closes with a summary of consumer risks to be aware of, as well as some of the CFPB and FTC resources consumers can look to for additional information and/or to file complaints.