Cryptocurrency scams continue to plague unsuspecting victims, with the FBI issuing a warning that nearly $10 million has been lost over the past year to fraudsters posing as lawyers offering to help recover lost funds. In a new Public Service Announcement (PSA), the agency urges individuals to be vigilant and watch out for these predatory scammers.
The modus operandi of these fake lawyers involves reaching out to victims through social media or messaging platforms, claiming to represent fictitious law firms with the authority to investigate fund recovery cases. To lend credibility to their scheme, the scammers may assert that they are working with or have received information on the victim’s case from reputable agencies like the FBI or Consumer Financial Protection Bureau (CFPB). Some victims have even been lured in through fake websites that appear legitimate, all in the hopes of retrieving their stolen funds.
Once contact is established, these fraudulent lawyers may employ various tactics to deceive victims:
– Persuading victims to disclose personal and financial information under the guise of assisting in fund recovery.
– Demanding upfront legal fees to facilitate the return of funds.
– Requesting payment for alleged back taxes or other fees as a prerequisite for fund recovery.
– Citing legitimate financial institutions and money exchanges to enhance their credibility.
According to data compiled by the FBI’s Internet Crime Complaint Center (IC3) from February 2023 to February 2024, victims of crypto scams have suffered losses amounting to $9.9 million. In total, reported digital crimes involving cryptocurrency have resulted in losses exceeding $3.8 billion in the past year.
Ilia Kolochenko, CEO of ImmuniWeb, warns that the proliferation of such scams is likely to escalate due to the availability of generative AI (GenAI) tools that enable fraudsters to create authentic-looking emails and websites efficiently. He emphasizes the need for proactive measures to combat this emerging threat, proposing a three-pronged approach:
– Enhanced funding and resources for law enforcement agencies to bolster their response capabilities.
– Regulation of GenAI vendors to prevent misuse of AI products and stringent monitoring of access to these tools.
– Collaboration between government entities and the private sector to launch security training and awareness campaigns aimed at educating individuals and preventing them from falling victim to GenAI scams.
As the landscape of cybercrime evolves, it is essential for individuals to remain vigilant and exercise caution when dealing with unfamiliar entities offering financial assistance. By staying informed and adopting best practices for online security, individuals can better protect themselves from falling prey to fraudulent schemes.