The reporting of crypto scams in the United States is currently fragmented across multiple agencies, making it difficult to assess the full scope of the problem. Coinbase’s Chief Security Officer, Philip Martin, believes the system should be streamlined under one umbrella to enhance consumer protection and provide better insights into emerging threats.
A Fragmented Ecosystem
Martin highlighted the inefficiencies of the current system at the SXSW conference in Austin, Texas.
“It’s a very fragmented ecosystem. Where do you report these things? Well, you go here, you go there, you go somewhere else,” he told reporters.
This lack of a centralized reporting mechanism creates confusion for victims and delays law enforcement efforts in addressing scams.
“I’d love to see that addressed and really brought under one umbrella, and that then helps us get a better idea of the magnitude of the problem,” Martin added.
He further explained that consolidating reports would allow federal agencies to allocate more resources effectively to combat crypto-related fraud.
Challenges for Victims
The U.S. has multiple federal and state-level agencies handling financial and internet crimes, such as the FBI’s Internet Crime Complaint Center (IC3). However, Martin pointed out that victims of crypto scams often feel unheard.
“It feels like they’re screaming into the void to like IC3 or some of the government reporting websites,” he said.
To address this, he suggested a unified reporting system that not only consolidates all data but also provides victims with some form of visibility into their complaints.
Also Read: Top White Label Crypto Exchange Providers in 2025
Comparing Systems: Lessons from the UK
On an earlier panel about online fraud, retired FBI agent Roger Campbell discussed the challenges faced by victims in reporting scams.
“It’s kind of frustrating,” Campbell said, noting that victims often search online for ways to report scams and are met with an overwhelming amount of information.
He cited the UK as an example of an efficient system where all crimes can be reported through a single portal, allowing victims to track their complaints.
“You report something to the IC3, you never hear anything back 99% of the time,” Campbell added. “It gets frustrating again for the victim. They almost feel victimized again.”
Delays in Identifying Scams
Another major challenge in policing crypto scams is the delay in reporting.
“A scam may have happened six months ago, and we might hear about it tomorrow,” Martin noted.
This lag complicates efforts to identify and shut down fraudulent schemes in a timely manner. Additionally, most crypto scams are orchestrated from overseas, making enforcement even more difficult.
Related: Bybit Closes ETH Gap After $1.4 Billion Lazarus Hack, CEO Confirms
The Need for Global Cooperation
Many scams originate in countries such as Myanmar and Laos, where U.S. law enforcement has limited reach.
“It can be hard for law enforcement to reach into those areas and really sort of strangle the stuff at the root,” Martin said.
He emphasized the need for international collaboration to eliminate safe havens for crypto scammers.
“Making it a priority to work with governments around the world so that there’s no safe haven for these scammers” is essential, he stressed.
Growing Concerns and Emerging Threats
The issue of crypto scams continues to evolve. On March 10, the California Department of Financial Protection and Innovation revealed that it received over 2,600 complaints in the past year. Among them, officials identified seven previously unknown types of scams, including those related to crypto mining, gaming, jobs, and giveaways.
As scams become more sophisticated, experts like Martin continue to call for systemic changes to improve scam detection and response. A unified reporting system and stronger international cooperation may be the key to safeguarding crypto users from financial fraud.
