Criminals are Posing as the FTC to Try to Steal Your Money and Information

If a government agency calls and tells you to pay a time or you’ll face jail time, it can be frightening. You might even make a reckless decision out of fear, just to make the problem disappear.

Many victims have done the same, turning over their financial information to fraudsters hoping to prey on their distress. The Federal Trade Commission is warning people about imposter scams, in which a fraudster pretends to be from a government agency like the FTC to steal your bank account information and possibly your identity.

“We take it seriously when scammers claim that the Chairman of the FTC is on the line to help you get out of a bind or that you’re being charged with serious crimes,” the agency wrote in a recent blog post. “No one at the FTC will call, email, or text you to say any of those things.”

Imposter scams aren’t new, but advances in AI are helping them become much more prevalent and convincing. For example, scammers use AI to disguise their location, voices and faces. The better they are at convincing you that they’re someone else, the more likely they’ll succeed with the crime.

And it’s worth the effort for criminals. Imposter scams led to $2.95 billion in losses in 2024, the second-highest damaging scam behind investor scams, according to the FTC. Government imposter scams specifically cost people $789 million, up from $618 million the year prior. 

What are FTC impostor scams?

FTC imposter scams work similarly to any other impostor scams. A criminal will reach out to you via phone, text or email while pretending to be the FTC, and they’ll try to either dangle a carrot in the form of free cash or scare you into thinking you are in trouble with the law.

Some examples FTC imposter scams examples include:

• You’re part of a settlement in a major class action lawsuit and the “FTC” requires access to your bank account to deposit your portion of the settlement. 
• The “FTC” requests that you pay a small amount up front as a fee before a substantial payout of any kind can be made.
• Your account has been breached and a member of the FTC is on standby to help you.
• If you do fall for one of these scams, it could be even more challenging to find a human at one of these agencies to help undo the damage, given the recent spate of layoffs across government agencies, including the FTC.

Targeting our most vulnerable

The scammers behind ploys like imposter scams understand that some groups might be more vulnerable than others, perhaps less aware of the FTC’s role and reach, and therefore more likely to fall into a trap.

The elderly are often most affected by imposter scams, and criminals understand that our seniors were probably raised to be more respectful of the authority of government agencies and, therefore, give them more time and attention. It is precisely the kind of time that a scammer needs to build the trust that’s essential to pulling off the scam.

According to the FTC, people ages 60 and up lost $2,4 billion to fraud in 2024, with people aged 60 to 69 losing more than any other age group. The number of older Americans who report losing more than $100,000 to fraud in a given year has more than tripled since 2020. 

For these victims, it’s much more than just the money they lose, although that can be devastating. Kathy Stokes, AARP’s director of fraud prevention programs, said in a March AARP post that fraud can lead to emotional and health risks and leave elders more reliant on government safety nets than the retirement nest egg they worked hard to build.

How to spot and dodge imposter scams

Most imposter scams have the same telltale giveaway as any other fraud — it’s all about the context. Here’s how to identify FTC and other imposter scams, so you don’t fall for them.

• The request, the offer, or the threat is out of the ordinary. When was the last time you were contacted by the FTC or any other government agency about anything? Have you ever had any communication or relationship with the FTC before? Have you ever done what they’re accusing you of?
• You’re told to send money. The FTC will never ask you to transfer or send money, make threats or promise a prize.
• It doesn’t feel right. Why would the FTC want to help you move your money to a safer account? Or invest in cryptocurrency? Or pay a fine using a gift card? It doesn’t. If the information you’re being told sounds off, trust your gut. The FTC would likely only contact you if you’ve filed a report. If they do, the spokesperson would have the report’s reference number.
• Consider the method of communication. The government tends to put notices in writing and send them through the mail. So be suspicious of texts, emails or calls claiming they’re from a government agency. 
• There’s an unusual sense of urgency. If you feel rushed to take action or make a decision, that’s a telltale sign that it’s a scam. You should always double-check the information you’re being told or have time to consult a professional for advice. The most powerful weapon in fighting any scam is to pause and think. Stop, collect your thoughts, don’t be hurried, don’t be bullied and take a deep breath. 
• You receive threats. If you are threatened with arrest, legal action, fines, contacting your employer or freezing payments and they refuse to mail you any documents or proof, it’s usually a clear sign of a scam.

What if you fall victim to an imposter scam?

If you ever fall victim to an impostor scam, your next move depends on the severity of the scam you fell for:

• If you made a payment or bank transfer, contact your bank or credit union immediately and see if you can cancel and reverse the payment. If you gave them a credit card number, contact the card issuer to report fraud.
• If you gave the scammers access to any type of account, cancel that account, contact the fraud department, and change your passwords. Also change any other passwords to accounts with the same login credentials.
• If you provided your Social Security Number and you haven’t already done so, place both a fraud alert and a credit freeze on your credit reports. You may also consider signing up for an identity theft protection service like Aura or a credit monitoring service like Experian so that you can have help in monitoring your identity online. 
• Share your story with family and friends so that they can learn from your experience.
• Report the scam to the FTC, to help increase awareness of the scam and help protect others.
• Report it to your local police department. It could alert them to similar scams in the area and help them get the word out to the local community as well.