Crypto Scam Victims: A New Target for Fraudsters
Victims of cryptocurrency scams are now being targeted a second time by fraudsters posing as law firms, according to a new warning from the FBI. These scammers are capitalizing on the vulnerability of individuals who have already lost funds in previous crypto scams.
Fake Law Firms Exploit Crypto Scam Victims
The FBI has identified a troubling trend: scammers are masquerading as law firms and approaching crypto scam victims with promises to recover their stolen funds. These fraudulent entities claim they can help reclaim lost investments, but in reality, they are scamming the victims once more.
A Growing and Lucrative Scam
The FBI first highlighted this scam last year. However, recent updates reveal that targeting crypto scam victims has become increasingly profitable for scammers. Between February 2023 and February 2024, nearly $9.9 million has been stolen through these deceitful schemes.
How the Scam Unfolds
Scammers reach out to victims, often claiming they can investigate and recover lost cryptocurrency. Some victims also initiate contact after being duped by fake websites offering crypto recovery services. Once a victim decides to work with the fake law firm, the scammers employ various tactics to extract more funds. These include upfront fees for bogus services, demands for “back taxes,” and other fabricated legal fees. Additionally, scammers request personal and banking information to further exploit the victims.
False Legitimacy and Government Connections
To appear credible, scammers frequently mention affiliations with the FBI, the Consumer Financial Protection Bureau (CFPB), or other government agencies. This tactic is designed to enhance their legitimacy and lure victims into their trap.
Reporting the Scam
The FBI urges anyone who believes they have been targeted by these fraudulent schemes to file a report with the FBI’s Internet Crime Complaint Center.
By staying vigilant and aware of these scams, crypto investors can better protect themselves from falling victim to these sophisticated fraud operations.