Beware: Law Firm Impersonators Targeting Crypto Scam Victims, FBI Warns

Law firm impersonators are targeting victims of cryptocurrency scams, with the FBI issuing a public warning about the fraudulent scheme. According to the Federal Bureau of Investigation (FBI), scammers are posing as lawyers and reaching out to individuals who have fallen victim to crypto scams, offering to help them recover their lost funds.

These fraudsters are using social media and messaging platforms to impersonate law firms and contact victims of crypto scams. In some cases, they even reference the FBI to make their communication seem more legitimate. The FBI has advised individuals to be cautious of advertisements for cryptocurrency recovery services and to thoroughly research any company before engaging with them.

The scam typically involves the fraudsters requesting victims to pay an initial fee upfront, with the promise of recovering their funds once the balance is paid. Between February 2023 and February 2024, this scheme has enriched fraudsters by $9.9 million, according to the FBI.

Earlier this year, 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 the previous year.

Cybercriminals are increasingly leveraging the anonymity and rapid transaction capabilities of digital currencies like Bitcoin, Dogecoin, and Shiba Inu to carry out these fraudulent schemes. The FBI urges individuals to be cautious and vigilant when dealing with cryptocurrency investments and to report any suspicious activity to law enforcement.

As the popularity of cryptocurrencies continues to grow, it is essential for individuals to educate themselves on the risks associated with these digital assets and to take necessary precautions to protect their investments from fraudulent schemes. The FBI’s warning serves as a reminder to remain vigilant and to exercise caution when dealing with cryptocurrency transactions.