Crypto scammers circle back, pose as lawyers, steal an extra $10M in truly devious plan

Crypto scammers circle back, pose as lawyers, steal an extra $10M in truly devious plan

June 25, 2024 at 02:33PM

The FBI reported that scammers posing as helpful lawyers defrauded victims of approximately $10 million in crypto scams within a year. These scammers prey on the vulnerable, claiming to recover lost tokens for a fee, and even impersonate government agencies. Beware of cryptocurrency recovery services and report such scams to authorities. Crypto scams have significantly impacted both consumers and legitimate businesses, with losses totaling billions of dollars.

Key takeaways from the meeting notes:

– In the past 12 months, scammers posed as helpful lawyers, defrauding victims of approximately $10 million through fake cryptocurrency recovery services.
– The increase in fake companies claiming to recover stolen crypto highlights a concerning rise in fraudulent activities.
– Scammers use various tactics, from charging up-front fees to impersonating government agencies, such as the FBI or CFPB, in an attempt to add legitimacy to their schemes.
– The FBI and the Department of Financial Protection and Innovation advise caution regarding crypto recovery services and emphasize the need for thorough research and verification before engaging with any such companies.

The notes also highlight the significant impact of crypto scams on both consumers and legitimate businesses, with reported losses to the US economy exceeding $4.57 billion during the same period, surpassing the impact of ransomware. The personal and financial toll on victims, including accounts of drugging and suicidal ideation, underscores the severity of these fraudulent activities.

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