In brief
- The FBI has released an updated advisory warning that fictitious law firms are targeting victims of crypto scams for further exploitation.
- The agency noted that scammers return to the scene of the crime, winning former victims’ trust because they know the details of lost funds and when transfers were made.
- Members of the public are advised to adopt a “zero trust” model and be wary of firms contacting them out of the blue.
Crypto scammers are masquerading as law firms to deceive vulnerable people out of their savings, according to the FBI—and even targeting consumers who have fallen victim to fraudsters before.
A new FBI advisory has set out red flags the public should be aware of, including lawyers who claim to be affiliated with governments and regulators. Some also claim to partner with organizations that don’t even exist.
Cybercriminals may request payment in the form of crypto or gift cards for their so-called “services,” even though a legitimate organization would never do so.
Bogus law firms
The FBI noted that scammers often win the trust of victims because they have knowledge of the exact amount of funds they lost in the past—and when the wire transfers were made. In some cases, victims are referred to a bogus “crypto recovery law firm” and told to open accounts with foreign banks, but the domain they’re directed to is a phishing link designed to capture even more of their information.
Further warning signs include victims being told to pay “bank fees” to verify their identity. Scammers also have a reluctance to provide credentials to back up their claims, and won’t agree to video meetings.
According to the FBI’s advisory, the public should use a “zero trust” model and be wary of firms contacting them out of the blue, ask for photographic evidence of law licenses, and request proof of employment from anyone claiming to be a government employee. Meticulous records of interactions are also recommended.
“Contact with scammers impersonating law firms continues to pose many risks, including the theft of personal data and funds from unsuspecting victims to the reputational harm of actual lawyers being impersonated,” the advisory added.
The warning comes after a slew of high-profile bankruptcies left exchange customers waiting years to be reunited with their funds, with opportunistic criminals pretending to be involved in official recovery efforts.
Other crypto scams have leveraged the images of high-profile individuals such as Apple co-founder Steve Wozniak and Tesla founder Elon Musk, using either carefully-chosen real footage or AI deepfake imagery to convince victims to part with their cryptocurrency. According to a recent report, deepfakes of celebrities, government officials, and other individuals accounted for 40% of “high-value” crypto fraud in 2024.
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