Summary
- Crypto scams increased by 50% from 2022 to 2023, with over 20,000 cryptocurrencies now available.
- The FBI warns of scammers posing as law firms or lawyers, targeting crypto-scam victims for identity theft and financial theft.
- Avoid shady recovery services, don’t share personal/financial info, report scams to IC3.gov.
Cryptocurrencies have been around ever since Bitcoin was introduced to the world by the cryptic Satoshi Nakamoto back in 2009. Since then, the number of cryptocurrencies has exploded to over 20,000, and with that growth has come an explosion of crypto scams as well. Between 2022 and 2023, the FBI reports that crypto-investment fraud rose from $2.57 billion dollars to $3.96 billion, an increase of over 50%. As if that weren’t enough, the FBI has just put out a public service announcement about a new scam targeting the victims of crypto scams.
What scam you need to watch for
The announcement was released by the FBI’s Internet Crime Complaint Center on Monday and outlines how scammers posing as law firms are targeting crypto-scam victims, offering to recover their stolen money. According to the FBI, the scammers are posing as lawyers representing fake law firms and contacting victims via social media. The fraudsters claim to be in contact with government agencies that have shared the victim’s details. In some cases, victims have even contacted the scammers directly through fake websites.
The endgame for the scammers has been both identity theft and financial theft. They have requested that the victims provide personal identifying information which opens the door to identity fraud. Or, if they’re coming for your money, the FBI says they ask for a portion of their fees to be paid up front, with the rest paid when the funds are recovered, or they ask for some sort of fee to be paid in order to release the already-recovered funds.
If you have been the victim of a crypto scam, the FBI advises that you be hyper vigilant when it comes to recovery services. Do your due diligence and be wary of any entity that has a small online footprint or makes promises about being able to get your money back. If you get a cold call from someone promising financial recompensation, don’t give them any personal or financial information. And remember, law enforcement agencies will never charge you money to investigate crimes.
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If you have been scammed, don’t get down on yourself, it can happen to anyone, and it does happen to about 15% of Americans every year. If you happen to be one of this year’s lucky 50 million American’s, gather all the information you can (eg, how you were contacted, names used, date it occurred) and file a report with the Internet Crime Complaint Center. The internet can be a dangerous place, stay safe out there.
