FBI Warns of crypto scammers posing as law firms to help victims of fraud
The Federal Bureau of Investigation (FBI) has warned of a new cryptocurrency scam under the guise of legal recovery services. Cybercriminals are reportedly posing as law firms in this latest scheme.
According to a recent alert, fraudsters are duping victims in the name of offering cryptocurrency recovery services to victims of investment scams.
Such scams have reportedly led to losses worth over $9 million between February 2023 and February 2024 alone.
Scammers claim to help victims of fraud
Per the warning, the bad actors approach victims of scams, posing as lawyers. They employ various social media platforms in this regard.
They then proceed to convince the victim that they are authorised by government agencies. Some claim they have received information on the victim’s case.
Government agencies like the Consumer Financial Protection Bureau (CFPB) and the FBI are the most used names, according to the Bureau. The scammers claim they can trace and retrieve lost funds.
Some of these bad actors even set up fake websites. These websites are intricately designed to trick unsuspecting victims, as the warning notes:
In some instances, scam victims have contacted fraudsters on fake websites, which appear legitimate, hoping to recover their funds.
Once they gain the trust of the victims, they proceed to solicit sensitive details from the victims. They typically employ several deceptive tactics in this regard.
Asking for personal information
According to the FBI, these bogus lawyers request the victims to verify their identities. Bank account details are often asked to help victims get their money back.
To make the ordeal look legitimate, they even ask victims to quote the amount of money they are seeking from the original fraudster in the victim’s case.
Subsequently, the scammers then ask victims for upfront payment to proceed with their bogus services.
Per the Bureau, they request only a portion of the total fees to make things look more legitimate, keeping the remainder due for when the funds are recovered.
In some cases, victims are even directed to pay for “back taxes” and other fees to complete the bogus recovery process.
Further, the scammers also reference actual financial institutions and money exchanges to build credibility.
The FBI has clarified that law enforcement agencies do not request payment to pursue investigations. As such, the warning urges victims of scams to be thorough with their research when employing a law firm or related professionals.
Further, the agency has advised checking for “vague language” when interacting with such service providers.
Over the past years, the FBI has been closely monitoring the cryptocurrency space. The Bureau had reported a 53% rise in crypto scams in 2023 compared to the previous year.
Earlier this year, the agency warned of the risks associated with using unregistered cryptocurrency money-transmitting services.
Last month, the FBI charged a Manhattan man for orchestrating a $43 million crypto ponzi scheme.
The post FBI Warns of crypto scammers posing as law firms to help victims of fraud appeared first on Invezz
