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Forbes
6 hours ago
- Forbes
FBI Warns Scam Victims To Be On The Lookout For Fake Law Firms Offering To Help Recover Losses
Beware of fake lawyers who promise to help scam victims. getty Bad actors can take on all kinds of guises—including pretending to be lawyers. The FBI has been warning the public about a new scam involving fraudsters posing as lawyers representing fictitious law firms. With the scam showing no signs of slowing down, the FBI has updated its warning to share more details about how these fraudsters hope to steal your money—and your crypto. Scams are increasingly becoming more sophisticated and widespread. The FBI's Internet Crime Complaint Center (IC3) received 859,532 complaints in 2024, totaling $16.6 billion, a 33% increase from 2023—the lion's share of those complaints involved phishing and spoofing. In these common tricks, victims are tricked into providing personally identifying information or taking action. Increasingly, victims may be seeking to recover some of those losses. This is where a new scam comes in. Using social media or other messaging platforms, fraudsters may contact scam victims and offer their services, claiming to have the authority to investigate recovery cases. To verify the contact, the "lawyers" say they are working with, or have received information on, the scam victim's case from the FBI, Consumer Financial Protection Bureau (CFPB), or other government agency. In some cases, scam victims have reached out to fraudsters on fake websites, which look legitimate, in hopes of recovering their funds. As part of the scam, the fraudsters may request that victims verify their identities by providing personal identifying information or banking information to get their money back. They may also request that victims provide a judgment amount they are seeking from the initial fraudster or pay a portion of the initial fees up front, with the balance due when funds are recovered. Other traps may include asking victims to make payments for back taxes and other fees to recover their funds. As part of the scam, the fraudsters may reference actual financial institutions and money exchanges to build credibility and further their schemes. Between February 2023 and February 2024, cryptocurrency scam victims who were further exploited by fictitious law firms reported losses totaling over $9.9 million, according to the FBI Internet Crime Complaint Center (IC3). It's important to understand that once money has left your account, it's rare that it can be recovered if you don't act quickly. Law enforcement has indicated that the money may be gone forever if a claim isn't filed within 24 hours. Claims should generally be made through law enforcement. One red flag for scams is the claim that a law firm is an officially authorized partner with multiple U.S. and foreign government or regulatory agencies. No law firms are officially authorized partners of U.S. government agencies. Sometimes, fictitious law firms will make references to fake government or regulatory entities, such as the International Financial Trading Commission (INTFTC), to add credibility to their schemes. You should always double-check to see whether such an agency exists. Scammers may also request payment in cryptocurrency or prepaid gift cards. This should set off a few alarm bells. First, most legitimate law firms offer many ways to pay—I don't know any that accept gift cards. And, the federal government does not request payment for law enforcement services provided. Scammers who already know the exact amounts and dates of previous wire transfers where scammed funds were sent should also be a red flag, as is the suggestion that you were on a government-affiliated list of scam victims, which means that you can recover their money through "legal channels." (This doesn't exist.) Scammers may also suggest that previously scammed funds are in an account held at a foreign bank, requiring you to register an account at that bank. The scammers may even provide a domain or website for the bank that appears legitimate, but is actually a fraudulent platform to continue the scheme. Similarly, scammers may attempt to place you in a group chat on WhatsApp or other messaging applications (claiming it's necessary for secrecy and safety) and suggest that they are working with foreign bank processors and attorneys and need you to pay bank fees to be used to verify your identity and ownership before they can withdraw funds. And while law firms often work on referrals, a person who has offered to work with you but is only willing to engage with one particular law firm—especially one designated as a 'crypto recovery law firm,' should raise your suspicions. Due Diligence Measures If you've been a victim of a scam, and someone outside of the government reaches out to you to help you recover funds, you should assume they should not be trusted by default—every request should be verified. You should be cautious of law firms contacting you unexpectedly, especially if you have not reported the crime to any law enforcement or civil protection agencies. If in doubt, assume it's a scam. The fictitious law firms may also target victims who were previously scammed out of crypto. Be wary of advertisements for cryptocurrency recovery services. Research the advertised company and be cautious if it uses vague language, has a minimal online presence, or makes promises about recovering funds. Before you share any information, verify the person's legitimacy. Request information about credentials, including their law license (this information can be easily verified with your state bar association). If someone who purports to be a lawyer cannot or will not provide this information, assume they are not legitimate. You should also ask for verification of employment from anyone claiming to work for the U.S. Government or law enforcement. Contact your local office of the relevant government agency and request verification of the individual's identity with whom you are communicating. And finally, keep excellent records, including recordings of video chats of all interactions. Law Enforcement Remember that law enforcement does not charge victims a fee for investigating crimes. If someone claims an affiliation with the FBI, contact your local FBI field office to confirm. Additionally, the IC3 does not work with any non-law enforcement entity, such as law firms or crypto services, to recover lost funds or investigate cases. And, the IC3 will never directly contact you for information or money. If you are approached by someone impersonating or claiming to work with IC3 or find a website impersonating the IC3, consider filing a complaint with the information. Be sure to include the website link in your complaint. Reporting A Scam If you believe you have been a victim of a cryptocurrency scheme or other fraudulent scheme, please file a report with the FBI's IC3 at If possible, include the following: Information regarding how the individual initially contacted you and how they identified themselves. Include identifying information such as name, phone number, address, email address, and username. Financial transaction information such as the date, type of payment, amount, account numbers involved (including cryptocurrency addresses), the name and address of the receiving financial institution, and the receiving cryptocurrency addresses. Additionally, the FBI requests victims of fraudulent law firm scams, or those who suspect they may have been victimized, to report the suspicious activity to their local FBI field office and the FBI's IC3. Tax Rules For Losses While you may not be able to recover your losses, taxpayers who were tricked as a result of a traditional investment scam may be entitled to tax relief. Earlier this year, the IRS Office of Chief Counsel released a memo (Memorandum Number 202511015) providing clarification on the deductibility of theft losses for scam victims. Why was clarification needed? Casualty and theft losses have a long history in our tax system. In 1867, tax deductions were allowed for losses related to fire and shipwrecks. Three years later, the same year the Harpers Ferry Flood devastated parts of the Shenandoah, the definition was expanded to include floods. A few years later, the wording was changed to "storms." By the early 20th century, the deduction had changed again. In 1913, the first tax form under the new, modern tax system allowed a general deduction for "[l]osses actually sustained during the year incurred in trade or arising from fires, storms, or shipwreck, and not compensated for by insurance or otherwise." The definition was later expanded to include "other casualty, and from theft." However, the Tax Cuts and Jobs Act (TCJA) made another tweak: from 2018 to 2025, personal casualty and theft losses are deductible only to the extent that the losses are attributable to a federally declared disaster. (The One Big Beautiful Bill Act generally maintained the limits on losses, with one exception: it has been expanded to include state-declared disasters.) The memo stresses that the theft loss deduction is still available for businesses and individuals who incur losses in transactions entered into for profit. There is no statutory definition of "a transaction entered into for profit." However, courts have determined that to meet the criteria, a primary profit motive is required. Forbes IRS Issues Warnings On Tax Scams Driven By Bad Advice Often Found On Social Media By Kelly Phillips Erb Forbes How One Small Click Led To Big Headaches For A Tax And Accounting Firm By Kelly Phillips Erb Forbes Some Scam Victims May Be Able To Deduct Related Losses On Their Tax Returns By Kelly Phillips Erb
Yahoo
25-06-2025
- Yahoo
Protect Your Elders: June "Senior Scam Alerts" Newsletter Launches
Las Vegas, Nevada--(Newsfile Corp. - June 25, 2025) - In a year when losses from senior scams have reached alarming new heights, a national initiative is stepping in to help. Senior Scam Alerts is a free weekly newsletter designed to protect older Americans from the growing threat of scams and fraud. Senior Scam AlertsTo view an enhanced version of this graphic, please visit: According to the FBI's Internet Crime Complaint Center (IC3), more than 147,000 Americans aged 60 and older lost nearly $4.9 billion to scams and fraud in 2024 - a 43% increase over the previous year. With an average loss of over $83,000 per victim, the stakes for seniors and their families have never been higher. Senior Scam Alerts focuses on covering senior scams - explaining how they work, how to spot them, and how to report them to authorities . The newsletter draws from trusted sources such as the FBI, Department of Justice, IC3, and local law enforcement to ensure its content is accurate and up to date. "Too many of our parents, grandparents, and neighbors are falling victim to scams that could have been stopped through education," said Seth Combs, founder of Senior Scam Alerts. "We created this newsletter to give seniors and their loved ones something simple, free, and truly useful - the knowledge to protect themselves." From health insurance fraud and pig butchering to smishing and grandparent scams, each newsletter includes prevention tips, real-life stories, and links to reporting tools and educational resources. The newsletter is free and open to all - including seniors, caregivers, adult children, senior centers, and law enforcement professionals. Subscribers can sign up now at About is a not-for-profit organization dedicated to protecting seniors from financial exploitation through education, support, and timely alerts about emerging scams. Contact:info@ To view the source version of this press release, please visit Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
05-06-2025
- Business
- Forbes
FBI Warns iPhone And Android Users—Do Not Take These Calls
You have been warned — do not take the call. The FBI is warning smartphone users this week to be alert to nationwide attacks that frighten citizens into sending money. There's a nasty twist to this scam, and it's one where law enforcement is especially keen to stop Americans becoming victims. 'Scammers are spoofing FBI phone numbers nationwide,' the bureau says, 'impersonating government agents. Victims are tricked into thinking an arrest is imminent unless they send money.' If you receive such a call, the advice is simple and clear: 'The FBI will never call you demanding money to get out of criminal charges. It's a scam. Hang up and visit the FBI's to file a report.' The FBI is not alone in being spoofed in this way — this has become a powerful attack methodology and it's catching on fast. Last week I warned that multiple police forces across several states have issued the same warnings." New York State Police has told its citizens that 'an ongoing phone spoofing scam" is now "impersonating members of law enforcement or government agencies in an attempt to solicit sensitive personal information from individuals across New York State and beyond.' Those scammers 'demand personal information such as Social Security numbers and have threatened punitive action against recipients who refuse to comply.' Whether it's federal, state or local law enforcement, the advice is exactly the same. Do not take the calls. As soon as you hear the initial pitch from the scammer, hang up and file a report, either with your local police or with the FBI's national IC3 service. As with the FBI, New York State Police warns that attacks spoof legitimate phone numbers "to make it appear as if calls are coming from trusted agencies. These scams are designed to create confusion and fear, often leading victims to comply with demands or share information that can be used to commit further fraud.' You have been warned — this scam is nasty and preys on natural fears. Do not be afraid to hang up the phone. If you have any doubts, call back your local police force using a publicly available number. But all law enforcement agencies stress they never make such threats by phone or text — it's a scam every single time.
Yahoo
29-05-2025
- Business
- Yahoo
Palm Beach County-based 'SIM swap' scam could extend across U.S., court records show
A Palm Beach resident may be one of many people across the country who fell victim to a scam known as "SIM swapping." Palm Beach Police on May 28 arrested a 31-year-old man and 29-year-old woman who live in Westlake, but whose scheme to bilk unsuspecting people from hundreds of thousands of dollars may stretch across state lines, according to their arrest reports. The pair were arrested after the Palm Beach resident, who lives on the South End, called police to report that someone had accessed his phone and financial accounts, gained access to about $1,500 in cash from an ATM and attempted to wire transfer more than $200,000 from his bank account, according to the arrest reports. What officers found what a scheme they said was orchestrated by the Westlake couple, who tricked the man into transferring his phone numbers to a new carrier — without him knowing, the arrest reports said. Here's what to know about SIM swapping and this case. "SIM swapping," or "SIM hijacking," happens when fraudsters gain control of a person's phone number and then use it to access their banking and other financial and personal accounts, according to the Federal Bureau of Investigation's Internet Crime Complaint Center, also called the IC3. More: Palm Beach Police: 'SIM swap' scam tried to steal more than $200,000 from Palm Beacher The Palm Beach resident told police that he received a call on April 8 from a person who said who said they were with AT&T, and that he needed to validate his phone numbers using a code sent to him via text message, an arrest report said. The resident provided the code that he received to the person, but later discovered that the code was used to forward his phone number to a different provider, Verizon, police said. By giving that code to the person who said they were from AT&T, he allowed them to complete the final step to move all three of the phone numbers on his account to the other carrier, police wrote in the arrest report. About 20 minutes after that phone call, phone numbers connected to the resident's AT&T account stopped working, police said. Once the phone numbers were transferred, someone tried to withdraw money and make a wire transfer from the Palm Beach resident's bank account, police said. Someone also successfully took over one of the man's email accounts. Detectives determined that once the couple gained access to a person's phone line, they could "circumvent two-factor authentication and gain access to victims' financial accounts, resulting in substantial unauthorized wire transfers and fraudulent transactions," the arrest report said. In recent years, the number of SIM swap cases in the U.S. has dropped from a peak in 2022, according to the IC3's annual reports: In 2024, there were 982 complaints of SIM swapping with a total reported loss of $25,983,946. In 2023, 1,075 SIM swapping complaints were made with a reported loss of $48,798,103. In 2022, 2,026 cases were reported with a reported loss of $72,652,571. In 2021, the IC3 received 1,611 complaints about SIM swapping with estimated losses of $68 million. Once the phone numbers were transferred, someone tried to withdraw money and make a wire transfer from the Palm Beach resident's bank account, police said. Someone also successfully took over one of the man's email accounts. It's unclear from the arrest reports just how many people may have been affected. However, Palm Beach Police talked with at least one person in another state, Nevada, who provided evidence that they may also have lost money to the same people who targeted the Palm Beach resident, an arrest report said. When the Westlake home where the couple lived, Palm Beach Police found a yellow notebook with "Work $" written on it, the arrest report said. Inside the notebook, officers said they found bank account details, Social Security numbers, addresses, names and more personal details about more than 50 people in Florida and across the United States. Those who believe their case may be connected to the one in Palm Beach should call the Palm Beach Police Department's non-emergency line at 561-838-5454, department spokesman Capt. Will Rothrock said. Complaints can also be filed with the IC3 at Palm Beach has cautioned residents to be wary of potential scams. "Most of these cases nationally go unsolved," Rothrock said. "The work and tenacity that our detectives put into this to follow the leads to the end and bring a successful conclusion are noteworthy." Kristina Webb is a reporter for Palm Beach Daily News, part of the USA TODAY Florida Network. You can reach her at kwebb@ Subscribe today to support our journalism. This article originally appeared on Palm Beach Daily News: Palm Beach County-based scam could extend across U.S., records show
Yahoo
15-05-2025
- Politics
- Yahoo
FBI Warns of Scam Demanding Students Pay to Fix Their Immigration Status or Else
The FBI is warning of a new scam targeting Middle Eastern students who lawfully reside in the US. Fraudsters are impersonating government officials in an attempt to convince students that there is an issue with their immigration or visa status. To rectify the problem, and avoid prosecution or deportation, a targeted student is asked to pay paperwork processing fees. Scammers are known to take advantage of current events to craft believable cons. This particular scam comes amid efforts by the Trump administration to ramp up the deportation of undocumented immigrants. Students have also faced threats of visa removal in response to participation in pro-Palestine protests on college campuses across the country. Students from Qatar, Jordan, Saudi Arabia and the United Arab Emirates have been targeted in the scam, according to an alert from the FBI's Internet Crime Complaint Center (IC3). Scammers are impersonating agents from the Department of Homeland Security (DHS), Homeland Security Investigations (HSI) or US Citizenship and Immigration Services (USCIS). In some cases, scammers identify themselves as foreign government officials from Qatar, the United Arab Emirates and the UAE Embassy in Washington. "They may speak professionally and use the accents and/or language matching the purported location of the callers," IC3 said in the alert. It did not specify how much fraudsters have been charging students. However, according to the FBI's latest annual fraud report, victims lost $405 million to government impersonation scams last year. The first step to protecting yourself against a scam is knowing about it. So, if you're reading this, you can check that box. The FBI said you should always be skeptical of any unsolicited government communication. If this happens, begin by verifying the validity of the call or message by contacting the agency yourself with a number or email found on its website. You should take time to analyze any links that scammers send you. Make sure links are encrypted with standard "https" encryption and the URL reads as you would expect. For example, URLs should end in ".gov" not " and should also not be a random combination of letters and numbers. That is a clear red flag. Finally, do not download files or provide any unsolicited caller two-factor authentication codes, the FBI says. If you ended up paying the scammers, you should contact your bank, credit union or credit card company right away. Your financial institution may be able to cancel the transaction in time or give you your money back. It's also common for scammers to ask for payment via cryptocurrency and gift cards regardless of the scam. Crypto payments are basically irreversible, but contacting a gift card issuer can potentially lead to a refund. Finally, the FBI has asked the public to report any fraudulent or suspicious activity at Reporting scams to the agency helps it inform the public and assists law enforcement with tracking down criminals.
