Edward "Coach" Weinhaus, the Founding Executive Director of the CAFE Association, said that the organization was established to bridge consumer protection with industry responsibility through education and best practices. This announcement was made in a press release on the CAFE Association's website.
"Fraud isn't just a consumer problem — it's an industry problem," said "Coach" Weinhaus. "Anna, Erica, and I formed CAFE to stand at the intersection of consumer protection and industry responsibility. Our mission is to protect vulnerable populations, provide trusted resources, and support companies that are committed to doing the right thing."
Financial fraud and scams are prevalent across various sectors of the economy, not limited to cryptocurrency. According to law enforcement and consumer data, there is an increase in losses from multiple channels such as bank transfers, payment cards, wire fraud, check fraud, gift cards, and social-engineering cons. Most of these fraudulent activities occur within the traditional financial system. In 2023 alone, payment card fraud reached an estimated $33.83 billion worldwide. Against this backdrop, crypto-related scams represent only a portion of a broader fraud landscape that includes both traditional and modern financial systems.
The Federal Trade Commission (FTC) reports that U.S. consumers lost over $12.5 billion to fraud in 2024, marking a 25% increase from the previous year. Investment scams led all categories with losses amounting to $5.7 billion. The FTC emphasizes that this surge indicates a higher percentage of victims losing money rather than just an increase in reported cases, highlighting intensified fraud pressure across everyday consumer channels. These statistics contextualize crypto scams: significant losses continue to be driven by well-established traditional financial vectors like bank transfers and card fraud.
While crypto crime exists, it remains relatively small when measured as a share of activity; Chainalysis reports that only about 0.14% of on-chain transaction volume in 2024 was linked to illicit activity. Bitcoin ATMs or crypto kiosks are legitimate tools when used correctly; operators are considered money services businesses subject to federal Anti-Money Laundering/Bank Secrecy Act (AML/BSA) regulations. Compliant kiosks are designed for lawful cash-to-crypto transactions. Although scammers exploit these kiosks, consumers who purchase from registered operators, verify addresses, and avoid sending funds to unknown parties can transact safely.
Weinhaus is also a lecturer in entrepreneurship at UCLA Anderson School of Management since 2016 and holds additional teaching roles at Washington University in St. Louis and Pepperdine University. As an attorney and founder with expertise in compliance, venture initiation, and public education, he applies his skills to setting standards, building member programs, and enhancing consumer resources at a national association focused on anti-fraud education and industry responsibility.