FBI Offers Guidance on Distinguishing Deceptive Legal Operations Exploiting Cryptocurrency Swindle Casualties
In a recent alert, the Federal Bureau of Investigation (FBI) has warned the public about a surge in fraudulent law firm scams. These scams, which have reportedly reached a historical record in scale and amplitude, are targeting vulnerable populations, particularly the elderly.
The fraudsters, posing as lawyers, offer their services through Zoom or phone calls, often with 'lawyers' who speak impeccable English or other languages to explain how to 'settle the matter'. Victims are then placed into a group chat on messaging applications like WhatsApp for supposed secrecy and safety. The fraudsters may request payment to a third-party entity for these supposed purposes.
Ilia Kolochenko, CEO at ImmuniWeb and a Fellow at the British Computer Society, has also highlighted the rise of these scams. He notes that although the scheme is not new, the FBI's alert suggests an increase in its amplitude and scale.
To avoid falling victim to these scams, the FBI suggests using a zero-trust model to verify all requests in situations involving law firms. Red flag indicators include impersonation or affiliation as 'official authorized partners' with multiple US and foreign government or regulatory entities that are not an existing status for law firms. Suspicious behaviors that can trigger victims to detect malicious intent include claims that the victim's funds are in an account held at a foreign bank and telling victims to register an account at that bank.
Other red flag indicators include references to fictitious government or regulatory entities, such as the International Financial Trading Commission (INTFTC). Fraudsters are also breaching legitimate law firms and using their infrastructure to send credible emails from real domains.
The fraudsters impersonate or falsely affiliate themselves with multiple government entities to give victims a sense of safety and security. They may even recruit unwitting individuals to provide customer support for scamming schemes. However, these individuals may quit without reporting the incident to law enforcement agencies, out of fear of criminal charges.
The proliferation of fake law firms can lead to increased costs of litigation and settlements due to eroded trust in legitimate communications by real lawyers and law firms. The FBI has requested potential victims of fraudulent law firm scams to report suspicious activity to their local FBI field office and IC3.
Ilia Kolochenko identified fake lawyer syndicates as groups involved in fraudulent legal activities, often impersonating lawyers or providing illegitimate legal services. However, specific syndicate names were not publicly disclosed. It is crucial for the public to stay vigilant and verify the authenticity of any legal services before engaging with them.
