FBI Alerts Crypto Scam Victims to Recovery Services Offered by Fake Law Firms

The Federal Bureau of Investigation (FBI) has issued a new warning about cybercriminals posing as law firms and lawyers that offer cryptocurrency recovery services to victims of investment scams and steal funds and personal information.

The agency noted an increase in scams involving bogus digital asset recovery services. Between February 2023 and February 2024, victims of secondary cryptocurrency recovery scams paid more than $9 million to scammers, according to FBI data.

According to the FBI, scammers lure victims into believing the legitimacy of the service by claiming to work with government agencies such as the FBI and the Consumer Financial Protection Bureau (CFPB). They also build credibility by mentioning real financial institutions and money exchanges in their communications with victims.

The FBI lists common scamming claims by scammers:

• Request victims to provide personal or banking information to get their money back.
• Request victims to state the judgment amount they seek from the initial fraudster.
• Request victims to pay a portion of fees upfront, with the balance due when funds are recovered.
• Direct victims to pay back taxes and other fees to recover their funds.

The FBI reminds people that whenever someone claims to have the ability to recover stolen cryptocurrency, the company should be thoroughly investigated online before any personal information or payments are shared.

State-level authorities and federal intelligence agencies can, under certain circumstances, track stolen crypto, but these services don't charge any fees and don't reach out to victims to ask for more personal information or payment.

The FBI also notes that no private sector entity has the authority to issue a seizure order, so anyone making such claims is likely to be a scammer.

(Source: Bleeping Computer)