A financial analyst named Charlotte Cowles believed the same when she transferred $50,000 to a man she was led to believe was an undercover Central Intelligence Agency (CIA) officer. After her widely shared personal essay about the episode, one point stood out — scams impersonating government agencies are getting more sophisticated.
Fortunately, there are measures you can take to shield yourself from government impersonators. Below are some practical pointers to help you identify and steer clear of these frauds.
What Are Government Impersonation Scams?
Scams where criminals pretend to be government officials target thousands of people annually. Close to 150,000 such incidents were reported to the Federal Trade Commission in 2023 — nearly 20,000 more than the previous year. The monetary toll is even more worrying: victims lost over $443 million to these schemes last year.
Government impersonation frauds take many forms. Common varieties include:
1. Social Security Administration Scams
Perpetrators often use phishing (email-based) and vishing (phone-based) tactics to trick you into handing over data or funds. Phishing directs victims to fake websites to capture credentials, while vishing uses phone conversations to extract information.
During tax season, scams spoofing the Social Security Administration are especially prevalent, according to former FBI special agent Dave Burroughs, now a partner at StoneTurn.
“An attacker might call, pretending to represent the Social Security Administration and claim the victim’s Social Security number is blocked or about to expire, demanding payment to clear the issue,” Burroughs explained.
2. IRS Scams
Impersonation schemes targeting the IRS are so ubiquitous that the agency maintains a running list of current tax scams on its website.
These scams aim to trick taxpayers into sending money or divulging sensitive data and can arrive by phone, email, text message or postal mail. Scammers may falsely claim you owe taxes or are due a refund.
It’s also common for imposters to threaten arrest or legal action to frighten people into compliance.
3. Law Enforcement Scams
Cowles’ $50,000 loss began with a call from someone posing as an Amazon representative. She was then connected to an alleged Federal Trade Commission representative, who put her in touch with a person claiming to be a CIA agent. The “agent” insisted a warrant was out for her arrest and that her bank funds were at risk.
Threats of arrest are a signature tactic in law enforcement impersonation schemes. Whether the scammer claims to be local police or a federal officer, these cons are frequently detectable because they don’t follow normal channels of official communication.
“Government agencies generally do not call, text or email people unless there is ongoing business with them,” Burroughs said. “Their standard practice is to communicate through mailed notices.”
4. Federal Trade Commission Scams
Before the CIA impostor, Cowles encountered someone pretending to be from the FTC. Because the FTC is known for investigating fraud, scammers adopt its identity to create a false sense of legitimacy. Fraudsters have also impersonated the FTC to claim victims have won sweepstakes, awards or grants.
The FTC does not run sweepstakes or issue grants. Crucially, no FTC representative will ever ask you for money or personal details. If someone claiming to be from the FTC threatens arrest or deportation, that’s a clear signal it’s fraudulent.
4 Tips to Reduce Your Risk
While there are ways to fix some consequences after being defrauded, avoiding becoming a target is far preferable.
Jim Van Dyke, a senior principal and head of innovation at TransUnion™, has researched identity crime extensively and offers practical advice to reduce your exposure to government impersonation frauds.
1. Don’t Assume a Phone Call Is Legitimate
Caller ID can show who’s calling — but it can also be spoofed. Scammers can falsify caller ID details so it looks like the call is from a trusted source.
Even a simple recorded “yes” could be used by fraudsters to claim you authorized a credit card charge.
“If someone contacts you unexpectedly and you’re unsure, stop interacting with them, even if the number looks familiar,” Van Dyke advised. “Government bodies typically reach out by mail, not by phone, text or email.”
2. Hang Up and Contact the Agency Directly
A genuine government official will have no objection if you end the call and reach out to the agency yourself using its official phone number.
Whether it’s the IRS, FTC or law enforcement, disconnect and call the agency through its published contact number.
3. Don’t Hand Over Money or Sensitive Data
Scammers usually want money or personally identifiable information. Government agencies do not request such details via phone, text or email. Be skeptical when someone presses for account numbers, Social Security numbers, one-time passcodes or PINs.
“Any communication asking you to transmit account or card numbers, Social Security numbers, one-time passcodes or PINs should be treated with extreme caution,” Van Dyke said.
4. Resist Pressure to Act Immediately
“Scammers know that the quicker they can rush someone into a decision, the more likely they are to succeed,” Van Dyke noted.
If someone urges you to act right away, be wary. Take the person’s details, pause, and do some research before making any decision.
Government impersonation scams can be alarmingly persuasive. If you suspect you’ve encountered a scam, report it to the FTC through its fraud reporting portal. Filing a report helps the FTC track and respond to scams circulating each year.
Alex Morgan is a financial writer with more than a decade of experience. Their articles have appeared on a range of personal finance sites, including Money Under 30, GoBankingRates, Retirable, Sapling and Sifter.
Sources:
2. StoneTurn
4. FTC
5. TransUnion™
6. Personally identifiable information
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