FBI Warns of Rising Cryptocurrency Recovery Scams Targeting Fraud Victims

The FBI has issued a warning about the rise of cryptocurrency recovery schemes targeting individuals who have lost cryptocurrency due to fraud, scams, or theft. According to the FBI Internet Crime Complaint Center (IC3), victims reported over $2.5 billion in losses due to cryptocurrency investment frauds in 2022 alone.

Fraudulent businesses claiming to offer cryptocurrency tracing and recovery services may contact victims through social media, messaging platforms, or online advertisements. These recovery scheme fraudsters often request an upfront fee and then either disappear after receiving the initial payment or provide incomplete or inaccurate reports, asking for more fees to supposedly recover the funds. Some fraudsters might falsely claim to be affiliated with law enforcement or legal services to appear credible.

It’s important for individuals to exercise caution and protect themselves from such schemes:

• Be cautious of advertisements for cryptocurrency recovery services. Research the company thoroughly, especially if they use vague language and have a limited online presence.
• Do not share financial or personal information with unknown individuals claiming to recover stolen cryptocurrency.
• Law enforcement agencies do not charge fees for investigating crimes. Verify any claims of affiliation with the FBI or other authorities by contacting local law enforcement offices.
• When reporting cryptocurrency investment fraud, provide transaction details and information about interactions with individuals offering recovery services.

It’s crucial to remain vigilant and seek legitimate avenues for recovering lost cryptocurrency, such as involving law enforcement or pursuing civil litigation.

By FCCT Editorial Team