Scam Alert: Second-Wave Crypto Scam Uses Fake Law Firms

Scammers are targeting people who have already lost money in cryptocurrency scams, posing as law firms and government agencies offering “fund recovery.” This is a dangerous second wave of fraud that preys on victims’ hopes of getting their money back. Instead of recovering funds, these imposters demand more payments, often in crypto or gift cards, causing victims to lose even more money.

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What’s Going On?
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Cybercriminals are contacting people who have already lost money in crypto scams, posing as attorneys from legitimate-sounding firms. These scammers often claim they’re working with agencies like the FBI or CFPB and have your “case file”—but it's all fabricated. Their goal: get you to pay more money under the guise of legal recovery.

Between February 2023 and February 2024, victims reported over $9.9 million in additional losses to these imposters.

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How the Scam Works
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• Scammers impersonate attorneys or law firms, complete with fake letterhead and official-looking documents.
• They claim to be working with real government regulators or reference made-up entities like the “International Financial Trading Commission (INTFTC).” No law firm is officially partnered with U.S. agencies.
• They may already know details of your original theft—transfer dates or amounts—to build false credibility.
• You’re asked for payment in cryptocurrency or prepaid gift cards to cover “recovery fees,” “back taxes,” or other fabricated costs.
• You may be funneled into private group chats on WhatsApp or messaging apps. Scammers claim this is for your “safety” or “secrecy,” but it’s a tactic to isolate victims and build trust. In these chats, you might be introduced to supposed foreign bank processors or attorneys who say you must pay “bank fees” to verify your identity or prove ownership before stolen funds can be released.
• You may be directed to register with a fraudulent foreign bank platform designed to steal more money and information.
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How to Avoid Falling for It
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If someone contacts you claiming they can recover stolen cryptocurrency, be on the lookout for these common warning signs:

• Don't trust unsolicited offers to recover your crypto. Legitimate law enforcement doesn’t cold-call victims. There are no law firms which are officially authorized partners of US Government agencies.
• Never pay upfront. The FBI does not charge victims or request payment!
• Use a “Zero Trust” mindset. Assume all unsolicited outreach is suspicious until proven genuine.
  
• Ask for video ID and licensing. If the “attorney” can’t verify via live video, stop communication.
• Verify contact independently. Reach out to official agencies or law firms directly—use numbers from trusted sources, not what’s provided by the caller.
• Avoid secretive forums or foreign account setups. These are common tactics to avoid detection and isolate victims.
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The Carefull financial safety service, which provides account, credit and identity monitoring, offers a ScamCheck tool that members can use to help them detect whether a call, email or text message is a scam. You can try Carefull for free for 30 days.

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