Scammers Impersonate Lawyers to Target Crypto Fraud Victims with Fake Recovery Schemes

The FBI has issued a renewed alert warning of fraudulent schemes in which scammers pose as lawyers and law firms to target individuals who previously fell victim to cryptocurrency fraud, particularly the elderly, who accounted for $2.83 billion in losses in 2024—nearly 30% of total crypto fraud damages [1]. These fraudsters employ sophisticated tactics, including the use of fake legal documents with authentic-looking letterhead, impersonating government agencies, and fabricating regulatory bodies such as the “International Financial Trading Commission” to gain victims’ trust [1].

The scams often begin with unsolicited messages that claim the victim is eligible for fund recovery through “legal channels.” Victims are then directed to “crypto recovery law firms” and instructed to register accounts with foreign banks via seemingly legitimate but fraudulent websites [1]. Scammers create a sense of urgency and legitimacy by referencing past transactions, including exact amounts and dates, and by placing victims in WhatsApp group chats with supposed foreign bank processors and attorneys [1]. In these communications, victims are pressured to pay fees in cryptocurrency or gift cards, while scammers avoid video verification and refuse to provide documentation or licenses [1].

Navin Gupta, CEO of Crystal blockchain analytics, emphasized the increasing sophistication of these scams, noting the role of AI in enabling hyper-personalized attacks using leaked data and victim profiling. He advised victims to assume that every unsolicited message is a potential attack and to adopt a mindset of skepticism as a key defense mechanism [1].

Investment fraud remains the most prevalent form of crypto crime, with “pig butchering” schemes—where victims are groomed online before being introduced to fraudulent investment opportunities—dominating the landscape. Chainalysis data shows that these scams increased 85-fold since 2020, with individual victims losing up to $2–4 million [1]. The FBI reported notifying 4,323 investment fraud victims in 2024, estimating $285 million in savings, though the psychological toll on victims was evident, with 42 requiring suicide intervention referrals [1].

The scale of crypto fraud has expanded beyond individual scammers to include organized criminal actors. North Korean hackers, for example, stole $1.34 billion from crypto platforms in 2024, a figure close to the $1.4 billion lost in the Bybit hack earlier that year [1]. California reported the highest losses at over $1.39 billion, followed by Texas with $738 million [1].

To combat these threats, the FBI recommends a “zero trust” approach, urging victims to verify all claims through video calls, request documentation of legal licenses, and confirm the legitimacy of any government affiliations before proceeding with any transactions [1].

Source: [1] FBI Alert: Scammers Pose as Lawyers to Target Past Crypto Fraud Victims with Fraudulent Recovery Schemes (https://cryptonews.com/news/fbi-alert-scammers-pose-as-lawyers-to-target-past-crypto-fraud-victims-with-fraudulent-recovery-schemes/)