The Federal Bureau of Investigation (FBI) released information of an emerging criminal tactic used to further defraud cryptocurrency scam victims.

Using social media or other messaging platforms, fraudsters posing as lawyers representing fictitious law firms may contact scam victims and offer their services, claiming to have the authorization to investigate fund recovery cases. To validate the contact, the “lawyers” claim they are working with, or have received information on, the scam victim’s case from the FBI, Consumer Financial Protection Bureau (CFPB), or other government agency. In some instances, scam victims have contacted fraudsters on fake websites, which appear legitimate, hoping to recover their funds.

To further the recovery scam, the “lawyers” may:

• Request victims verify their identities by providing personal identifying information or banking information to get their money back;
• Request victims provide a judgment amount they are seeking from the initial fraudster;
• Request victims pay a portion of initial fees up front with balance due when funds are recovered;
• Direct victims to make payments for back taxes and other fees to recover their funds; or
• Reference actual financial institutions and money exchanges, to build credibility and further their schemes.

Between February 2023 and February 2024, cryptocurrency scam victims who were further exploited by fictitious law firms reported losses totaling over $9.9 million, according to the FBI Internet Crime Complaint Center (IC3).

Tips to Protect Yourself

• 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.
• If an unknown individual contacts you and claims to be able to recover stolen cryptocurrency, do not release any financial or personal identifying information and do not send money.
• Law enforcement does not charge victims a fee for investigating crimes. If someone claims an affiliation with the FBI, contact your local FBI field office to confirm.

For more information on cryptocurrency investment schemes, see PSA Alert I0100322-PSA: Cryptocurrency Investment Schemes.

A D V E R T I S E M E N T

A D V E R T I S E M E N T

If you believe you have been a victim of a cryptocurrency scheme or other fraudulent scheme, file a report with the FBI’s Internet Crime Complaint Center. It is helpful to include:

• Information regarding how the individual initially contacted you and how they identified themselves. Include identifying information such as name, phone number, address, email address, and username.
• Financial transaction information such as date, type of payment, amount, account numbers involved (to include cryptocurrency address), name and address of the receiving financial institution, and receiving cryptocurrency addresses.

--Dollie Banner

Post Date: 2024-06-25 13:08:31

Last Update: 2024-06-25 13:40:27