FBI Issues Warning on Fake Lawyer Scams Targeting Crypto Victims

The FBI has issued a public warning about fraudsters posing as lawyers and contacting crypto scam victims. These bad actors promise to help recover lost funds, deceiving victims through social media and messaging platforms.

According to the FBI, these scammers often reference the FBI to validate their claims. Some victims have even encountered fraudsters on fake websites that appear legitimate. “Be wary of advertisements for cryptocurrency recovery services. Research the advertised company and beware if the company uses vague language, has a minimal online presence, and makes promises regarding an ability to recover funds,” the FBI warns.

Significant Financial Losses

The scam typically involves requesting victims to pay “a portion of initial fees up front with the balance due when funds are recovered.” Between February 2023 and February 2024, this scheme has netted fraudsters $9.9 million.

Earlier in March, the FBI highlighted a significant rise in crypto-related investment fraud schemes. Crypto scams accounted for 86% of all investment fraud losses in the U.S. in 2023, totaling $3.94 billion. This marks a 53% increase from 2022. The report noted that cybercriminals are leveraging the anonymity and rapid transaction capabilities of digital currencies, including Bitcoin (BTC), Dogecoin (DOGE), and Shiba Inu (SHIB).

Victims should exercise caution and thoroughly research any firm claiming to recover lost crypto assets. The FBI stresses the importance of being skeptical of unsolicited offers and advertisements for recovery services.