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California has established consumer protections against high-yield investment program (HYIP) scams, which are typically Ponzi schemes promising unrealistic high returns in short periods.
The California Department of Financial Protection and Innovation (DFPI) advises caution and diligence. HYIPs often involve cryptocurrency and depend on new investors to pay earlier ones, inevitably collapsing.
The DFPI issues desist and refrain orders against entities violating securities laws, emphasizing enforcement actions, educational initiatives, and the use of social media to combat these scams. Californians are urged to verify the licensing of investment or financial service providers and report suspected violations or improper actions to the DFPI.
For more details on recognizing and reporting HYIP scams in California, you can visit the DFPI’s guidance on avoiding such scams (DFPI) or contact our high-yield investment program scam lawyers today.
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