Law firm impersonators target crypto scam victims, FBI alarms

FBI Warns of Fraudulent Lawyers Targeting Crypto Scam Victims

The Federal Bureau of Investigation (FBI) has issued an alert regarding fraudsters impersonating attorneys and contacting individuals who have fallen victim to cryptocurrency scams. These bad actors may reach out through social media or messaging platforms, promising to assist in recovering lost funds.

In a statement, the FBI emphasizes that these scammers often reference the FBI to establish credibility. Victims may also encounter fraudulent websites made to resemble legitimate law firms, where they may be misled into providing personal information or funds.

The FBI advises utmost caution when encountering advertisements for cryptocurrency recovery services. Thoroughly research the company offering the service and be wary of vague language, minimal online presence, and claims of guaranteed fund recovery.

Modus Operandi and Extent of Fraud

Fraudsters frequently request advance payments from victims, promising to release the full funds upon successful recovery. The FBI estimates that such schemes have garnered approximately $9.9 million between February 2023 and February 2024.

Rise in Crypto-Related Fraud

Earlier in March, the FBI published a report indicating a substantial surge in crypto-related investment scams. In 2023, these scams accounted for 86% of all investment fraud losses in the U.S., totaling $3.94 billion, a significant 53% increase from the previous year.

Cybercriminals are exploiting the anonymity and swiftness of digital currencies such as Bitcoin (BTC), Dogecoin (DOGE), and Shiba Inu (SHIB) to facilitate their fraudulent activities.