FBI Warns of Ruthless Crypto Recovery Scam Preying on Victims Twice

Crypto recovery scams are evolving fast, with sophisticated fraudsters now impersonating entire law firms and fake government agencies to exploit victims a second time.

FBI Flags Fake Crypto Lawyers Exploiting Grief, Trust, and Empty Wallets

The U.S. Federal Bureau of Investigation (FBI) issued a new public service alert on Aug. 13, 2025, highlighting an intensification of fraudulent schemes that impersonate law firms claiming to recover stolen cryptocurrency. The updated bulletin builds on a previous advisory (I-062424-PSA) by expanding the list of red flags and preventative steps for individuals who may be in contact with these fictitious legal entities. As the agency clarified: “This updated advisory provides additional red flag indicators and due diligence measures to help victims who have been in contact with fictitious law firms conducting this fraudulent activity.”

Unlike the earlier version, the revised alert delves deeper into the behavioral patterns of scammers, emphasizing how they exploit victims’ vulnerabilities after an initial loss. The FBI underscored:

This scheme combines a number of exploitation tactics including targeting vulnerable populations, particularly the elderly; exploiting victims’ emotional state and financial need to recover funds from a previous scam; and giving victims the sense of safety and security by impersonating or falsely affiliating themselves with multiple government entities.

Offenders not only impersonate reputable attorneys and law firms, but also fabricate entire government bodies—such as the so-called International Financial Trading Commission—to build credibility and pressure victims into transferring new payments, frequently in cryptocurrency or gift cards.

In response, the FBI is urging citizens to adopt a “Zero Trust” approach, verifying credentials rigorously and avoiding any unsolicited legal outreach. Officials recommend requesting notarized identification, conducting video verification, and refusing any communication that directs payments through third-party fronts. While this advisory highlights the manipulative nature of these schemes, some in the crypto space maintain that legitimate recovery services using blockchain analytics do exist, warning that over-caution could suppress access to genuine solutions.