Scammers are impersonating law firms to defraud individuals who have already been victimized by cryptocurrency scams. These fraudulent entities contact victims, often the elderly, offering to help them recover funds lost in a previous scam. The schemes take advantage of a victim’s emotional state and desire to recoup their losses, which makes them susceptible to further exploitation. The scammers use a combination of sophisticated tactics, including creating fictitious documents and impersonating legitimate law firms or even government agencies, to appear credible.
This latest trend poses significant risks, including the theft of additional funds and personal data, as well as causing reputational damage to the real lawyers whose identities are being stolen.
To lure in victims, these scam operations display several red flag indicators. They often impersonate actual lawyers and legitimate law firms, using their insignia on fake documents. They may also falsely claim to be “official authorized partners” of U.S. and foreign government or regulatory entities, a claim that is completely untrue. Another tell-tale sign is the mention of fictitious government agencies, such as the “International Financial Trading Commission (INTFTC).” Payments are almost always requested in cryptocurrency or prepaid gift cards, methods that are difficult to trace, and a major red flag as U.S. government agencies do not request such payments for law enforcement services. The scammers may even have specific knowledge of a victim’s previous wire transfers and the exact amounts they lost, making their claims seem more believable.
The scam deepens as these firms use more manipulative tactics. They may tell victims they are on a special government-affiliated list of scam victims and that their money can be recovered through “legal channels.” Victims may be referred to a supposed “crypto recovery law firm” and then instructed to send payments to a third-party entity to maintain “secrecy and safety.” The victims’ funds are often said to be held in an account at a foreign bank, and they are told to register on a fraudulent website that mimics a legitimate banking platform. Communication is frequently moved to group chats on apps like WhatsApp, where other scammers, posing as bank processors and attorneys, claim that more fees are required to verify identity and allow for the withdrawal of funds.
To protect themselves, potential victims should adopt a “Zero Trust” model, verifying every request and assuming nothing is legitimate by default. A key measure is to be highly cautious of any law firm that contacts you unexpectedly, especially if you have not reported the initial crime to law enforcement. Always request video verification or documentation of their law license. If they are unwilling or unable to provide this, they are likely not legitimate. Furthermore, you should verify the employment of anyone claiming to work for a U.S. government or law enforcement agency by directly calling the agency’s local office. Maintaining records, including recordings of video chats, is also a useful due diligence measure to have on hand.
If you suspect you have encountered one of these fraudulent law firms, it is crucial to report the activity immediately. The FBI is requesting victims of these scams to file a report with their local FBI field office and the FBI’s Internet Crime Complaint Center (IC3) at www.ic3.gov. This will help law enforcement track and combat these schemes, preventing further victimization. This public service announcement is an update to previous alerts, highlighting the persistent and evolving nature of these fraudulent recovery schemes that target vulnerable individuals. Victims should be aware that their best defense is to be vigilant, skeptical, and proactive in their verification efforts.
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