FBI Offers Guidance on Identifying Deceptive Legal Strategies Exploiting Cryptocurrency Fraud Casualties

In a recent update, the Internet Crime Complaint Center (IC3) has provided a list of red flag indicators for potential victims of fake lawyer scams. These scams, which have been on the rise, often target vulnerable populations, particularly the elderly, and aim to defraud victims of their personal information and sometimes money.

One of the key red flags to watch out for is unexpected contact from law firms. If a law firm contacts you without any prior interaction, especially if you haven't reported a crime to any law enforcement or civil protection agencies, it's essential to approach with caution.

Another red flag is the mention of fictitious government or regulatory entities. Scammers often impersonate or falsely affiliate themselves with multiple government entities to give victims a sense of safety and security. The International Financial Trading Commission (INTFTC) is one such example of a non-existent entity.

Unwillingness or inability to provide credentials or a license, not appearing on camera, and not conducting video meetings are additional signs of potential scams. It's advisable to request video verification, documentation, or a photo of their law license.

Scammers may also require notarized proofs of identity from the supposed lawyers before continuing any further communications and transactions. Keeping records, including recordings of video chats, of all interactions is crucial.

Suspicious behaviors that can trigger victims to detect malicious intent include claims that the victim was on a government-affiliated list of scam victims and can recover their money through "legal channels." Knowledge of the exact amounts and dates of previous wire transfers and the third-party company where the victim previously sent scammed funds is another red flag indicator.

The FBI has also warned about these fake lawyer scams and provided a list of security measures to prevent falling for them. A zero-trust model should be used in these circumstances, assuming no one should be trusted by default, and every request should be verified. Requesting verification of employment for anyone claiming to work for the US government or law enforcement is also recommended.

It's important to note that fraudsters posing as lawyers from fictitious law firms use social media and messaging services to defraud victims. The German financial supervisory authority BaFin has reported cases in which fraudsters deceived victims of cryptocurrency scams under the pretense of being supposed lawyers.

Ilia Kolochenko, CEO at ImmuniWeb and a Fellow at the British Computer Society (BCS), stated that the amplitude and scale of the fake-law-firms fraud have probably reached a historical record. Some fraudsters even breach legitimate law firms and misuse their infrastructure to send highly credible and trustworthy emails from real domains belonging to law firms.

Those recruited by organized fraud syndicates to provide "customer support" are not necessarily GenAI deepfakes but often people who may not understand the nature of the work they do.

Stay vigilant and protect yourself from becoming a victim of these scams. If you believe you have been a victim of a fake lawyer scam, report it to the IC3 or your local law enforcement agency.

FBI Offers Guidance on Identifying Deceptive Legal Strategies Exploiting Cryptocurrency Fraud Casualties