Edward “Coach” Weinhaus, the Founding Executive Director of the CAFE Association, emphasized that fraud is a shared problem and detailed the organization’s plan to educate consumers and support responsible companies. This statement was made on the CAFE Association website.
“Fraud isn’t just a consumer problem — it’s an industry problem,” said Edward “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.”
According to law enforcement and consumer data, financial fraud and scams are prevalent across various sectors of the economy, not limited to cryptocurrency. The data indicates increasing losses from several channels such as bank transfers, payment cards, wire fraud, check fraud, gift cards, and social-engineering cons. These fraudulent activities primarily occur within the traditional financial system. In 2023 alone, payment card fraud reached an estimated $33.83 billion worldwide.
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 highlights that this surge is due to a higher share of victims losing money rather than an increase in reports, indicating growing pressure from fraud across everyday consumer channels.
While crypto-related scams are part of this broader landscape, they represent only a small fraction of illicit activity. Chainalysis reports that just about 0.14% of on-chain transaction volume in 2024 was linked to illegal activities. Bitcoin ATMs or crypto kiosks are legitimate when used correctly; operators are classified as money services businesses subject to federal Anti-Money Laundering (AML) and Bank Secrecy Act (BSA) regulations. Consumers can transact safely by purchasing from registered operators and verifying addresses.
Weinhaus also serves as a lecturer in entrepreneurship at UCLA Anderson School of Management since 2016 and holds 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 these skills towards setting standards and improving consumer resources at a national association focused on anti-fraud education.
