Michaela
Summary: How can crypto users protect themselves from fake law firms claiming to recover lost funds?
Users should be cautious when approached by services claiming to recover lost crypto. They must verify the legitimacy of any law firm or recovery service before sharing personal or financial information. Relying only on trusted and verified platforms helps protect assets and avoid falling victim to scams.
The Federal Bureau of Investigation (FBI) has issued an updated public advisory warning about fake law firms preying on cryptocurrency scam victims with false promises of fund recovery. The revised alert outlines new red-flag indicators to help individuals identify and avoid these schemes.
In its earlier advisory, the FBI cautioned the cryptocurrency community that fraudsters may approach victims through social media or messaging platforms, impersonating attorneys and falsely claiming to be authorized to investigate and recover lost funds.
To advance their scheme, these perpetrators often assert that they are collaborating with, or have obtained details about the victim’s case from, the FBI, the Consumer Financial Protection Bureau (CFPB), or another government agency.
According to the advisory, these fraudulent law firms often instruct victims to confirm their identities by submitting personal or banking information under the guise of facilitating fund recovery.
They may also ask victims to specify the judgment amount sought from the original scammer, demand partial upfront payments with the remainder due upon “recovery,” or request payments for purported back taxes and fees. In some cases, they reference legitimate financial institutions and money exchanges to bolster their credibility and advance the scheme.
In its latest advisory, the DOJ outlined several warning signs that may indicate fraudulent law firm activity. These include impersonating real attorneys or established law firms, creating counterfeit documents bearing authentic-looking firm logos or letterheads, and citing non-existent government or regulatory bodies such as the so-called International Financial Trading Commission (INTFTC).
Other red flags include demands for payment in cryptocurrency or prepaid gift cards, as well as detailed knowledge of the victim’s past wire transfers, including exact amounts, dates, and the third-party companies that initially received the funds.
Staying Safe from Fake Law Firms: A Reminder for SHIB Holders
For the Shiba Inu community, this advisory serves as a timely reminder that even though Shibarium and other SHIB-integrated platforms maintain strong security measures, the wider crypto landscape still faces persistent scams targeting victims of prior losses.
SHIB holders are urged to remain alert and cautious, especially when approached by entities claiming to recover lost crypto, and to verify the legitimacy of any service before sharing personal or financial information.
By practicing vigilance and relying only on trusted, verified platforms, the community can better safeguard its assets, spotlighting the ongoing importance of security awareness within the SHIB ecosystem. This proactive approach helps ensure that Shiba Inu users benefit from both innovation and safety as the network continues to grow.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
