Scammers falsely claim ties to the FBI, CFPB, legitimate financial institutions, and crypto exchanges in fraudulent schemes.
The FBI has cautioned the public about a surge in cybercriminals posing as law firms and attorneys offering cryptocurrency recovery services. These scams specifically target individuals who have fallen victim to investment frauds, promising to recover lost funds but instead stealing personal information and money.
The fraudulent schemes involve scammers claiming to collaborate with government agencies such as the FBI and the Consumer Financial Protection Bureau (CFPB), as well as referencing legitimate financial institutions and crypto exchanges.
This tactic aims to deceive victims into believing the authenticity of the recovery services, falsely suggesting they have the authority and capability to trace and retrieve stolen funds, according to Bleeping Computer.
Typically, these scammers employ several tactics: requesting victims’ personal or banking details under the guise of facilitating refunds, asking victims to specify the amount sought from the initial fraudster, demanding upfront fees with promises of recovering funds later, or instructing victims to settle purported back taxes and fees to release their assets.
According to data from the FBI’s Internet Crime Complaint Center (IC3), victims of such secondary cryptocurrency recovery scams have collectively lost over $9 million between February 2023 and February 2024 alone.
The FBI advises potential victims to thoroughly research any company offering recovery services before disclosing personal information or making payments. Victims of scams or suspicious activities are encouraged to report their experiences to the IC3, providing detailed information about the fraudulent activities and financial transactions involved.