IC3 Alert: Increase in Cryptocurrency Recovery Scams

The FBI has issued a warning about the rise in fraudulent schemes related to the recovery of lost cryptocurrency funds. In 2022, victims reported losses exceeding $2.5 billion to cryptocurrency investment frauds, as per the FBI Internet Crime Complaint Center (IC3).

Key Points of the Alert (I-081123-PSA):

1. Fraudulent Recovery Schemes: There’s a surge in businesses falsely claiming the ability to trace and recover funds lost in crypto scams. These fraudsters often reach out to victims via social media, messaging platforms, or through online advertisements.
2. Modus Operandi: These scammers typically ask for an upfront fee, after which they either go silent or provide an incomplete or misleading report, followed by requests for additional fees. Some even falsely claim affiliation with law enforcement or legal services.
3. No Seizure Orders by Private Firms: It’s important to note that private sector recovery companies cannot issue orders to seize or recover cryptocurrency. Only cryptocurrency exchanges can freeze accounts, and that too based on internal or legal processes.

Tips for Self-Protection:

• Research Thoroughly: Be cautious of advertisements for crypto recovery services. Research the company’s background and be skeptical of vague promises or minimal online presence.
• Avoid Unverified Contacts: If someone unknown offers recovery services, do not share your financial or personal information, and refrain from sending money.
• No Fees by Law Enforcement: Remember, law enforcement agencies, including the FBI, do not charge fees for crime investigations. Always verify claims of affiliation with such agencies.

Actionable Steps:

• Report Fraudulent Activities: If you encounter or fall victim to such scams, report them to your local FBI field office and the FBI IC3 at http://www.ic3.gov. Include detailed transaction information and interactions with anyone claiming to offer recovery services.
• Awareness is Key: It’s crucial to differentiate between legitimate crypto investigation companies and recovery scams. Always approach with caution and verify credentials before engaging with any service claiming to recover lost cryptocurrency funds.

Disclaimer: This post is for informational purposes based on the IC3 alert dated August 11, 2023. It’s not legal advice.

Reference: FBI Internet Crime Complaint Center (IC3), Alert Number I-081123-PSA.