Cryptocurrency scams have become a widespread issue, with victims losing nearly $10 million in the past year alone to fraudsters posing as lawyers offering to help recover their losses. The FBI has issued a Public Service Announcement (PSA) warning individuals to be wary of these predatory scammers.
These fraudsters often reach out to victims through social media or messaging platforms, claiming to be lawyers from fictitious law firms with the authority to investigate fund recovery cases. They may even go as far as to mention working with or receiving information from government agencies like the FBI or the Consumer Financial Protection Bureau (CFPB). In some cases, victims have been lured in by fake websites that appear legitimate, hoping to get their money back.
Once in contact, these fake lawyers may try various tactics to scam victims, such as tricking them into sharing personal or financial information under the guise of helping them recover funds. They may also request upfront legal fees, back taxes, or other fees to proceed with the fund recovery process, using legitimate financial institutions and money exchanges to appear credible.
According to data from the FBI’s Internet Crime Complaint Center (IC3), victims of crypto scams lost $9.9 million between February 2023 and February 2024. Overall, reported digital crimes involving cryptocurrency resulted in losses exceeding $3.8 billion last year, highlighting the scale of the issue.
Ilia Kolochenko, CEO of ImmuniWeb, pointed out that these scams are likely to increase due to the emergence of generative AI (GenAI) tools that enable fraudsters to create convincing emails and websites quickly. To combat this, he emphasized the need for increased funding and resources for law enforcement agencies, regulation of GenAI vendors to prevent misuse, and security training and awareness campaigns to educate potential victims and prevent them from falling prey to GenAI scams.
In conclusion, it is crucial for individuals to remain vigilant and skeptical of unsolicited offers from supposed lawyers promising to recover lost funds. By staying informed and cautious, individuals can protect themselves from falling victim to cryptocurrency scams.