Law firm impersonators target crypto scam victims, FBI alarms

The FBI has issued a public warning that fraudsters posing as lawyers are contacting crypto scam victims, promising to help recover their lost funds.

Bad actors may be using social media and other messaging platforms to impersonate law firms, contacting crypto scam victims and offering their services to recover lost tokens, the Federal Bureau of Investigation (FBI) warns.

In a statement, the bureau says these scammers reference the FBI to validate their contact. Additionally, there are instances where scam victims “have contacted fraudsters on fake websites, which appear legitimate, hoping to recover their funds,” the statement reads.

“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

The scam typically involves the fraudsters requesting victims to pay “a portion of initial fees up front with balance due when funds are recovered,” the FBI stated, adding that between February 2023 and February 2024, this scheme enriched fraudsters by $9.9 million.

Earlier in March, the FBI released a report highlighting a significant increase in crypto-related investment fraud schemes. The report revealed that crypto scams accounted for 86% of all investment fraud losses in the U.S. in 2023, totaling $3.94 billion, a 53% increase from 2022. The report detailed revealed that cybercriminals are increasingly leveraging the anonymity and rapid transaction capabilities of digital currencies, including Bitcoin (BTC), as well as meme coins like Dogecoin (DOGE), and Shiba Inu (SHIB).