The FBI is warning of an increase in the number of crypto recovery companies claiming to be able to help victims of cryptocurrency investment scams recover or get back their lost assets. But in fact, they are committing secondary fraud, and the public should remain highly vigilant.
Victims of cryptocurrency investment fraud reported to the FBI lost more than $2.5 billion in 2022 alone, according to the FBI's Internet Crime Complaint Center (IC3).
After suffering investment fraud, there will be many fraudulent companies claiming to provide cryptocurrency tracking and promising to recover lost funds. They may contact victims through social media or messaging platforms. Or they can place advertisements on some cryptocurrency-related articles or videos, or they can find ways to appear on search websites or social media to attract these victims to contact them.
Often these scammers will collect an upfront payment and then stop contacting the victim once the payment is received, or provide incomplete or inaccurate tracking reports and demand additional fees to recover the funds. Scammers may claim to have connections with law enforcement or legal services to demonstrate their legitimacy.
FBI Reminder:
Private companies cannot issue seizure orders to recover cryptocurrencies, and cryptocurrency exchanges can only freeze accounts based on internal processes or following relevant legal procedures. Therefore, the public should be highly suspicious of those who claim to be able to recover assets.
The FBI also reminds people not to share any personal or financial details with others online. Victims of fraud should report the incident to law enforcement (IC 3). Civil lawsuits can also be filed to recover lost assets, so it is important to retain all records, details of transactions and interactions with suspicious persons. However, such companies often operate under false names and there is a high probability that such cases will not be litigated in court.
Previously, the FBI also released a document showing that it seized nearly $1.7 million worth of cryptocurrency between March and July, which also proved that only law enforcement agencies have the power to confiscate or recover crypto assets.
This article: The FBI warns private companies not to issue seizure orders to recover cryptocurrencies, and investors should guard against secondary fraud. First appeared on Chain News ABMedia.