FBI Warns of Fraudulent Law Firms Targeting Crypto Victims

Law and Ledger is a news segment focusing on crypto legal news, brought to you by Kelman Law – A law firm focused on digital asset commerce.

The following opinion editorial was written by Alex Forehand and Michael Handelsman for Kelman.Law.

FBI PSA: How to Avoid Falling Prey to Fictitious Crypto Law Firm Scams

On August 13, 2025, the FBI’s Internet Crime Complaint Center (IC3) issued a new warning about a growing threat in the cryptocurrency space: fake law firms targeting scam victims. These fraudsters claim they can help recover stolen digital assets, but, in reality, are operating a secondary scheme intended to further exploit individuals who have already suffered financial losses. By presenting themselves as attorneys, regulators, or recovery specialists, they exploit trust at one of the most vulnerable moments in a victim’s experience.

This is not the first time the FBI has spoken out on the issue. Similar public service announcements were issued in August 2023 and June 2024, each one highlighting the evolution of these recovery scams. The latest alert underscores just how much more sophisticated the schemes have become—employing realistic branding, invented government entities, and manipulative tactics to convince victims that help is only a payment away.

The FBI’s message is clear: these operations are fraudulent from the ground up, and the best defense is education, skepticism, and quick reporting.

Key Exploitation Tactics Employed by Fraudulent “Law Firms”

The FBI makes it clear that these are not sloppy, one-off schemes. They are carefully orchestrated frauds designed to look and feel like real legal services. By leaning on impersonation, fake affiliations, and emotional manipulation, the scammers tap into the trust people instinctively place in lawyers and regulators.

The FBI highlights how these fraudulent actors are deliberately targeting vulnerable populations, particularly the elderly. By exploiting emotional distress and the natural urgency victims feel to recover stolen funds, scammers are able to pressure individuals into hasty and costly decisions.

A favorite trick is to pose as licensed attorneys or established law firms, complete with official-looking seals, letterhead, and websites. Many go further, falsely claiming partnerships with U.S. government agencies or foreign regulators. In some cases, the fraudsters even invent fake government entities—like the so-called “International Financial Trading Commission (INTFTC)”—to make their pitch sound more official.

The payment requests themselves are another giveaway. Victims are often instructed to send funds in cryptocurrency or even through gift cards—despite the U.S. government not charging payment for law enforcement services.

To strengthen their credibility, fraudsters sometimes display precise knowledge of victims’ prior transactions. They may cite exact details about wire transfers or the names of third-party recipients, creating the illusion that they have insider access.

A popular branding scheme is the “crypto recovery law firm” model. These organizations use persuasive language such as promising “legal channels” or claiming access to “government-affiliated victim lists,” all designed to lure in those already harmed by scams.

The schemes often stretch into the banking system as well. Victims may be told their funds are being held in overseas accounts and are directed to register on what appears to be a legitimate platform. In reality, the platform is fake, and victims are funneled into “secure” WhatsApp groups where they are pressured to pay bogus “bank fees.”

These groups avoid accountability at every turn. The so-called lawyers refuse video calls, dodge requests for proof of identity, and push payments through unrelated third parties. This refusal to show their face—or their credentials—helps them stay in the shadows while continuing to extract money.

Together, these tactics show how fraudsters are able to create a convincing illusion of legitimacy while keeping victims under pressure and off balance. Each element—from false government ties to evasive payment methods—is designed to erode skepticism and push individuals into quick decisions. But once you know how the scam works, the signs become easier to spot and avoid.

Enhanced Due Diligence: What Every Victim (Or Potential Victim) Should Do

The FBI advises adopting what it calls a Zero Trust approach—never assume unsolicited outreach is legitimate, and verify every claim thoroughly. If an individual is contacted out of the blue by a so-called law firm, skepticism should be the default posture.

Victims should always demand proper credentials. A legitimate attorney should be able to provide a verifiable law license or appear on a video call without hesitation. If these steps are met with resistance, it is a strong indicator that the contact is fraudulent.

Any claim of government affiliation must be checked directly with the relevant agency. Independent verification is the only way to confirm authenticity.

Maintaining meticulous records is equally important. Victims should save correspondence, document phone calls, and even record video chats where possible. Such evidence can be crucial in later investigations.

Finally, before entering into any arrangement that requires payment, victims should insist on notarized identity proofs or other verifiable documentation. Without it, they should walk away.

The FBI underscores the importance of immediate reporting. Early reporting not only improves the odds of stopping fraudsters but also helps protect others from falling into the same trap. If you suspect or fall victim to one of these schemes, immediately report it to your local FBI field office or the IC3 portal at ic3.gov.

Conclusion

The August 13, 2025, FBI PSA underscores an evolving threat: fraudulent entities misreplicating legal services to further victimize people already harmed in cryptocurrency frauds. Legal professionals must respond proactively—arming themselves and their clients with enhanced scrutiny, refusal to accept unsolicited outreach, and unwavering verification of credentials.

Should you or your firm wish to craft tailored educational materials, client advisories, or compliance checklists in light of this advisory, we’re here to assist.

This article originally appeared at Kelman.law.