Fraud Alert: Fake Legal Letters Promise Compensation for Cryptocurrency Scams

The Lower Saxony State Criminal Police Office has issued a warning regarding a sophisticated phishing scheme that begins with fraudulent legal correspondence. This scam promises victims a reimbursement following alleged cryptocurrency-related fraud.

According to the details shared on the police prevention portal of the LKA Niedersachsen, unsuspecting recipients receive a letter from a fictitious law firm claiming they are entitled to a compensation payout of EUR50,000. To facilitate the disbursement, the victims are instructed to confirm their identity. The LKA emphasizes that both the law firm and the financial institutions mentioned in the letter are entirely fabricated.

This scam has gained credibility due to the recent surge in cryptocurrency fraud cases. Reports indicate that organized crime rings are increasingly targeting individuals through call centers, with Europol having successfully shut down several such operations. Nationwide, numerous victims have reported significant financial losses after investing in purportedly secure cryptocurrency systems, only to be defrauded.

What adds to the scam's legitimacy is the inclusion of personal details of the recipients, such as their real names, addresses, email addresses, phone numbers, birth dates, and bank names. The source of this information remains unclear, but it typically originates from hacked accounts of companies where the victims are customers. Other potential sources include social media platforms, participation in sweepstakes, copies of identification shared on classifieds, or traditional phishing attacks.

Furthermore, the fraudulent letters provide access credentials for the supposed accounts that victims need to verify. A QR code is also included, directing recipients to a WhatsApp contact.

The LKA has received two reports related to this scheme, but it suspects that additional similar letters are circulating throughout the country. The specifics of what the scam demands from victims are currently unknown, as those who received the letters have not engaged with the fraudulent offers and claim they have not fallen prey to other phishing attempts.

The police suspect that the associated websites could be requesting further personal data, such as copies of identification, banking information, online banking credentials, advance fees, or activation fees for bank accounts that would later be misused for money laundering.

In response to this emerging threat, the LKA advises recipients of such letters not to respond and to refrain from sharing any personal information or identification documents via WhatsApp, email, or phone. It is also recommended that individuals contact their local police department. Anyone who believes they may have fallen victim to this scam should report it to the authorities immediately. Additionally, if any banking or access data has been shared, victims should inform their financial institution without delay.