FBI warns of new crypto scams involving fake law firms

The FBI has warned of a new trend that has emerged involving scammers posing as lawyers offering cryptocurrency recovery services. The agency’s Internet Crime Complaint Center (IC3) had previously warned about the increasing number of fake law firms offering to help unsuspecting users recover their assets from previous scams.

Also read: Colorado man pleads guilty to a $2.2M crypto fraud scheme

According to the FBI, the fraudsters trick their victims into believing they are working with the government, the Consumer Financial Protection Bureau (CFPB), and the FBI itself to recover lost digital assets.

FBI say millions of dollars were lost to the scam

According to Bleeping Computer , the fraudsters also give fake links to authentic financial service providers and money exchanges to convince their victims to believe their service and ability to trace and recover the funds.

The FBI estimates that between February 2023 and February 2024, fraudsters stole over $10 million from victims of crypto scams. These fraudsters pose as lawyers willing to help victims recover their lost tokens. Earlier this year, the FBI also warned that crypto scams were more harmful to the US economy than ransomware with reported cases estimated at around $4,7 billion.

“Be wary of advertisements for cryptocurrency recovery service.”

FBI.

The common tactics used include requesting personal information from victims, like banking details, to enable them to recover their investments. The fraudsters also ask victims to “pay back taxes and other fees to recover their funds.”

Scammers demand a fee first

While state authorities and agencies may track stolen crypto, freeze it and or recover it by sending it to more secure wallets or the victims’, scammers ask for a certain portion of the fee, to initiate recovery process while the rest will be paid on full recovery of the funds.

Also read: Investment fraud epidemic: Crypto scams dominate U.S. losses

Once the payments are done, they disconnect communication with the victims, which is contrary to the normal procedures.

“Law enforcement does not charge victims a fee for investigating crimes. If someone claims affiliation with the FBI, contact your local FBI field office to confirm.”

FBI.

According to the FBI, crypto scams are prevalent among average consumers and also affect the elite and businesses. The agency has warned individuals to be on the lookout for potential scammers by doing background checks on anyone claiming authority to recover lost crypto assets.

Cryptopolitan reporting by Enacy Mapakame