Scammers target vulnerable investors with fraudulent recovery schemes
The Federal Bureau of Investigation (FBI) has warned the public about a growing scam involving fictitious law firms claiming to help victims recover lost cryptocurrency funds. According to a recent Public Service Announcement (PSA), these fraudulent operations are exploiting individuals who have already fallen victim to crypto scams, often preying on elderly investors.
The FBI explained that the groups pose as legitimate law firms or recovery agencies, creating a false sense of trust by referencing fake government-linked entities, such as the so-called International Financial Trading Commission. “These organizations approach victims with promises of recovering stolen funds, but in reality, they are designed to further exploit those who have already suffered losses,” the agency said.
Fraudulent tactics and double scams
Investigators revealed that scammers often have knowledge of victims’ prior crypto transactions, suggesting they may be connected to the original fraud. This tactic allows them to “double-dip” on vulnerable targets, convincing victims they are dealing with credible recovery specialists.
In some cases, victims are instructed to create new accounts at supposedly foreign banks, which appear legitimate but are actually fraudulent websites built to continue the scam. Once trust is established, criminals pressure victims into providing personal information or additional payments under the guise of service fees.
FBI advice for protection
The bureau urged investors to adopt a zero-trust approach when contacted by anyone offering recovery services. This includes verifying employment claims, checking the authenticity of organizations, and avoiding engagement with unsolicited recovery offers.
The latest alert follows similar warnings issued by the FBI in August 2023 and June 2024, reflecting the persistence of fraud networks impersonating recovery firms. “Attackers continue to evolve their methods, but awareness and vigilance remain the strongest defense,” the agency emphasized.
The broader impact
With crypto adoption expanding, fraudulent recovery schemes represent a growing threat to investor security. Experts warn that these scams not only deepen financial losses but also erode trust in legitimate financial and legal institutions.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.