FBI Warns of Fake Law Firms Promising to Recover Lost Cryptocurrency

The Federal Bureau of Investigation (FBI) issued a warning on Monday, stating that “a new criminal strategy is being used to further deceive victims of cryptocurrency scams.” According to the FBI, criminals are posing as lawyers from fictitious law firms and approaching victims of cryptocurrency fraud through social media and messaging platforms. They offer services to recover lost funds, with the aim of enticing victims to provide more money or personal information.

The alert indicates that these scammers claim to have authorization from the FBI, the Consumer Financial Protection Bureau (CFPB), or other government agencies to verify their contact information. Some victims have contacted these fraudsters through seemingly legitimate fake websites, seeking assistance in recovering their money.

Based on data from the FBI’s Internet Crime Complaint Center (IC3) between February 2023 and February 2024, victims of cryptocurrency fraud further exploited by fictitious law firms reported losses exceeding $9.9 million.

To perpetrate the fraud, the impostor lawyers may request personal or banking information from victims to verify their identity or ask about the amount they wish to recover from the original fraudsters. They often demand upfront fees, promising to pay the balance after recovering the funds, and instruct victims to pay taxes and other fees for the recovery process. To establish credibility, these scammers mention legitimate financial institutions and currency exchange services, making their scheme appear legitimate.

The FBI’s warning provides some tips for investors to protect themselves from such cryptocurrency scams. The agency advises caution when encountering advertisements for cryptocurrency recovery services. Investors should thoroughly research any company, look for vague language, minimal online presence, or unrealistic promises related to recovering lost funds.

The FBI emphasizes, “Law enforcement agencies do not charge victims for investigating crimes,” and adds:

“If someone with an unclear identity contacts you claiming to recover stolen cryptocurrency, do not disclose any financial or personal information, and do not make any payments.

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