Fraud Education and Prevention Articles

Government and Financial Impostor Fraud Is Common: How to Avoid Getting Scammed

Aug 22, 2025

When 84-year-old Barbara from Raleigh, North Carolina, received a call from someone claiming to be from the Federal Trade Commission (FTC), she was suspicious.1 The caller said money launderers were targeting Barbara's savings account, and when she tried to use her funds, the transaction would be flagged "as dirty money." She could be implicated in the criminals' activities, he said, unless she allowed him to "clean" the money for her.

"The whole time I kept telling him, 'I know you're scamming me,'" she told her local news station. But he kept calling back and eventually wore her down. "He had gotten so into my head and had me scared, had me so confused," she said. 

The scammer convinced Barbara to send him $7,500, promising that undercover agents would return it to her "washed." He even called after receiving the money to thank her before disappearing with her savings. 

Government and financial institution imposter scams have been among the top three fraud types reported to the FTC (the real one) for years, with more than 265,000 reports in 2024, totaling nearly $789 million in losses (related to government impostor scams).2 Those reports include more than 10,000 FTC impersonation incidents like Barbara's — with median losses of $9,000 per victim. Reports of government impersonation scams to the FBI jumped 50% between 2022 and 2024.3

Here's what everyone should know about government and financial institution imposter scams and how to spot them. 


Imposter Scam Types and Methods

The methods and agencies misrepresented vary widely, but all government imposter scams exploit victims' trust in — and fear of — governmental authority to defraud them. 


Contact and Payment Types

Fraudsters posing as government or financial institution officials most often contact victims by phone, according to FTC data.4 However, smishing texts are common as well, and some victims are even approached via social media.5 These fraudulent text messages usually include a link to provide a payment method. 

Incredibly, gift cards were the most commonly reported payment method requested by government imposters in 2024 FTC reports. As Barbara's story above shows, however, bank account transfers are common, as are requests for cryptocurrency.6


Scam Angles and Misrepresented Agencies

Pay Up or Else Scams

From parking tickets to income taxes, most residents are used to owing the government money — and understand there's no getting around paying. Scammers take advantage by contacting victims about a supposedly outstanding bill, demanding immediate payment and threatening fines or even jail time.

Typical misrepresented agencies include:7

  • The IRS, demanding outstanding tax payments

  • The Social Security Administration, threatening to suspend benefits unless a fee is paid

  • Local law enforcement or court officials, claiming the victim has a warrant out for their arrest because of unpaid fines

  • Immigration authorities, threatening deportation unless an application issue is resolved with a fee

  • A state transportation agency, claiming the victim owes toll road fees

  • The U.S. Postal Service, withholding a delivery until a supposed postal fee is paid

  • Financial or bank "representatives" posing as part of a fraud department, requesting information or access to two-tiered authentication

 

The scammer typically requests an immediate payment, either through a link to an online payment portal, directing the victim to a payment app, or by taking payment information over the phone.


'I'm Here to Help' Scams

People rely on government services, for example, whether it's to pay their bills or to recover from a disaster. Scammers attempt to pose as helpful government officials offering to connect a victim to needed services — but request a fee or sensitive information to do so. 

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Government imposter scams are in the top three fraud types reported to the FTC, with more than 265,000 reports and nearly $789 million in losses in 2024.

Typical misrepresented agencies include:

  • Medicare, alerting an elder victim that their new benefits card is ready for them8

  • Social Security, offering to help extend a victim's benefits before they expire

  • The Federal Emergency Management Agency (FEMA), offering disaster victims access to federal funds

  • The FBI's Internet Crime Complaint Center (IC3), claiming it has recovered a victim's funds from a fraud5

  • The FTC (or an entirely made-up agency), claiming the victim has won a lottery or giveaway7

In these scams, the fraudsters typically request a processing or application fee, or they may simply ask for sensitive information, such as a victim's Medicare or Social Security number. 


Move Your Money to 'Protect It' Scam

These elaborate scams are downright cinematic. The victim is often first contacted by a scammer claiming to be from a company's fraud department, asking about suspicious account activity. The caller claims to have identified fraud and refers the victim to someone posing as an investigative government agency. (In some cases, the government agency is the first point of contact.) Or it may even be someone posing as law enforcement contacting customers with claims that their accounts have been compromised. In both cases, they instruct the customer to withdraw large sums of cash to assist in a fake “bank investigation” and request the funds, agreeing to meet their target to get the money for “evidence” or “safekeeping.” 

The government imposter claims that the victim's finances or identity is caught up in some criminal activity and they need the victim's help to catch the bad guys and protect the victim's funds. 

 

Typical misrepresented agencies include:

These scammers convince the victim to withdraw money from their account and transfer it to a "safe" location. They may request a bank transfer, a cryptocurrency ATM deposit, or even for the victim to buy gold bars and deliver them somewhere.


Tips to Avoid a Government Imposter Scam

Everyone has contact with the government once in a while. Here's how to screen for a government imposter without risking missing a communication from a real official or agency.5

  • Never wire money, send gift cards, use a payment app, buy and hand over gold bars, or transfer cryptocurrency to someone claiming to be from the government. Government agencies do not accept those payment methods.

  • Never give your sensitive data to a government official. First, they should already have access to any relevant personal data. Secondly, only share any required sensitive data with a government official when you have called them on a number you have verified is accurate.

  • Don't trust your caller ID. Spoofing is an easy trick for scammers that allows them to manipulate how names appear on caller ID.

  • Never click on a link from an unsolicited email, text, or social media message supposedly from the government. Government agencies do not communicate with citizens in these ways.

  • Do not accept a prize from a lottery or giveaway that you did not enter.

  • Know how your government benefits work. Your Social Security benefits will not expire as long as you remain eligible; you never have to pay for a new Medicare card; etc.

  • The IRS only contacts taxpayers who owe money by mail. A collections agency will only call on behalf of the IRS after you have received multiple letters from the IRS and the collections agency.

  • The FBI, FTC, or any other government agency will never ask a consumer for help in a criminal investigation by moving their money to another location.9

  • No government agency will demand money to avoid arrest or deportation.

  • Consider any unsolicited message from a government agency containing urgent demands a likely scam.13

  • Do not trust someone who gives you a “government ID number” or texts you a photo of their “employee badge.” Government officials do those things.8

  • If a supposed government agent calls you multiple times and builds a relationship with you, do not trust that person.

Government and financial imposter scams are widespread for a reason: Everyone relies on and has occasion to communicate with the government, or a financial institution, from time to time. But with some knowledge of what to look for — and how the government or financial institution should contact residents or customers — you can avoid one of these all-too-common scams.

If you do believe you've been victimized by a government or financial institution imposter scam, report the incident to the FTC and FBI's Internet Crime Complaint Center, and follow the steps in our article, "What to Do if You Are a Victim of Fraud." 14,15

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Important disclosure information

Asset allocation and diversifications do not ensure against loss. This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.

  1. Diane Wilson, "84-year-old woman who lost life savings to scammer thought she was 'helping the government,'" ABC 7 News, published April 3, 2023. Accessed July 24, 2025. Back
  2. Federal Trade Commission, "FTC Consumer Sentinel Network: Fraud Facts," Public Tableau, published May 6, 2025. Accessed July 24, 2025. Back
  3. Federal Bureau of Investigation, "Internet Crime Complaint Center Internet Crime Report 2024," published May 2025. Accessed July 24, 2025. Back
  4. Federal Trade Commission, "Explore Government Imposter Scams," Public Tableau, published April 24, 2025. Accessed July 24, 2025. Back
  5. Federal Bureau of Investigation, "FBI Warns of Scammers Impersonating the IC3," FBI Public Service Announcement, published April 18, 2025. Accessed July 24, 2025. Back
  6. Federal Trade Commission, "FTC Announces Impersonation Rule Goes into Effect Today," FTC Press Releases, published April 1, 2024. Accessed July 24, 2025. Back
  7. Federal Trade Commission, "How To Avoid a Government Impersonation Scam," FTC Consumer Advice, published November 2023. Accessed July 24, 2025. Back
  8. National Council on Aging, "Government Imposter Scams: What They Are and How to Spot Them," published February 21, 2025. Accessed July 24, 2025. Back
  9. Jennifer Leach, "Never move your money to 'protect it.' That’s a scam," Federal Trade Commission Consumer Advice, published March 5, 2024. Accessed July 24, 2025. Back
  10. Tara Siegel Bernard, "How One Man Lost $740,000 to Scammers Targeting His Retirement Savings," The New York Times, published July 29, 2024. Accessed July 24, 2025. Back
  11. Federal Bureau of Investigation, "FBI Warns Public to Beware of Scammers Impersonating FBI Agents and Other Government Officials," FBI Portland News, published June 5, 2024. Accessed July 24, 2025. Back
  12. Financial Crimes Enforcement Network, "Recognizing Imposter Scams," FinCEN Resources, accessed July 24, 2025. Back
  13. Oakland County, "Government Impersonation Scams: How to Recognize and Protect Yourself," Oakland County Blog, published October 9, 2024. Accessed July 24, 2025. Back
  14. Federal Trade Commission, "Report Fraud," accessed June 24, 2025. Back
  15. FBI, "File a Complaint," Internet Crime Complaint Center, accessed May 19, 2025. Accessed July 24, 2025. Back