Cryptocurrency Recovery Scams on the Rise: FBI Warns

The FBI, through its Internet Crime Complaint Center (IC3), is warning the public about an increase in cryptocurrency recovery scams.

According to the latest press release, these schemes target victims who have lost cryptocurrency to fraud, scams, or theft.

Cryptocurrency Recovery Scams: How They Operate

Recovery scheme fraudsters often contact victims directly on social media or messaging platforms. They may also advertise their services in the comment sections of online news articles and videos about cryptocurrency.

Typically, they charge an up-front fee and either cease communication with the victim after receiving an initial deposit or produce an incomplete or inaccurate tracing report and request additional fees to recover funds.

“Recovery scheme fraudsters charge an up-front fee and either cease communication with the victim after receiving an initial deposit or produce an incomplete or inaccurate tracing report and request additional fees to recover funds,” reads part of IC3 press release.

Additionally, the fraudsters may also claim affiliation with law enforcement (such as FBI) or legal services to appear legitimate.

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Cryptocurrency Recovery Scams: Red Flags

It is important to be aware of the following red flags when considering a cryptocurrency recovery service:

• The company uses vague language, has a minimal online presence, and makes promises regarding an ability to recover funds.
• The company contacts you unsolicited.
• The company asks for an upfront fee.
• The company claims to be affiliated with law enforcement or legal services.

If you have lost cryptocurrency to fraud, scams, or theft, do not fall victim to a recovery scheme. Instead, report the crime to law enforcement and seek help from a qualified financial advisor.

Tips to Protect Yourself

• Be wary of advertisements for cryptocurrency recovery services.
• Do not release any financial or personal identifying information to anyone who claims to be able to recover stolen cryptocurrency.
• Do not send money to anyone who claims to be able to recover stolen cryptocurrency.
• Law enforcement does not charge victims a fee for investigating crimes.
• Provide transaction details when reporting cryptocurrency investment fraud to law enforcement. Include information about your interactions with individuals claiming to offer cryptocurrency recovery services.

Our Take on Cryptocurrency Recovery Scams

Cryptocurrency recovery scams are a growing problem. If you have lost cryptocurrency to fraud, scams, or theft, do not fall victim to a recovery scheme. Instead, report the crime to law enforcement and seek help from a qualified financial advisor.