FTC Says Government-Imposter Scams Up 40% and Cost Victims $3.5 Billion — Spot the Red Flags Before You Pay

Government-imposter scams often use threats, fake urgency, and unusual payment requests to steal money and personal information from unsuspecting victims. rblfmr/Shutterstock

Have you ever received a text or unexpected message from a government agency (like the IRS)? Well, join the club. A growing number of Americans are reporting these kinds of messages. So much so that government agencies have started issuing statements about them, warning people not to interact with these messages.

In fact, reports of government imposter scams went up by about 40% in 2025 alone. Victims reported losses totaling $3.5 billion across all imposter scam categories. Scammers are becoming more sophisticated, often using official-sounding language, spoofed phone numbers, and convincing fake documents to trick consumers into handing over money or personal information. Here are seven red flags you need to look out for before you pay a dime.

1. They Claim to Be From a Government Agency and Demand Immediate Action

One of the most common government-imposter scam tactics is creating a sense of urgency. Scammers may pretend to represent the IRS, Social Security Administration, Medicare, law enforcement agencies, or other government offices. The FTC reports that these fraudsters often claim there is a problem requiring immediate action, such as unpaid taxes, suspended benefits, or legal trouble. Their goal is to pressure victims into acting before they have time to think critically. Real government agencies generally provide formal notices and opportunities to respond rather than demanding instant payment over the phone or by text.

2. They Threaten Arrest, Fines, or Benefit Suspension

Fear is one of the scammer’s most effective tools. Government-imposter scams frequently include threats that a victim will be arrested, fined, deported, lose benefits, or face legal action unless payment is made immediately. These threats can feel convincing, particularly when scammers possess personal information gathered from data breaches or public records. No legitimate government agency will threaten immediate arrest or demand payment to avoid criminal penalties. If a caller is trying to frighten you into sending money right away, that’s a major warning sign.

3. They Demand Unusual Forms of Payment

Another hallmark of a government-imposter scam is the payment method. Fraudsters frequently request payment through gift cards, cryptocurrency, wire transfers, payment apps, or prepaid debit cards. These payment methods are favored by scammers because the money is difficult to recover once sent. Legitimate government agencies generally do not request payment using gift cards or cryptocurrency. When someone claiming to represent the government asks for payment through an unconventional method, it’s time to stop and verify the claim independently.

4. They Ask for Sensitive Personal Information

Many government-imposter scams are designed to steal identities rather than collect immediate payments. A scammer may ask for your Social Security number, Medicare number, banking information, driver’s license details, or online account credentials. They often claim the information is needed to verify eligibility for benefits or resolve a supposed issue with your account. In reality, they are gathering information that can be used for identity theft and financial fraud. Never provide sensitive information unless you initiated contact using a verified government phone number or website.

5. They Use Spoofed Phone Numbers and Fake Websites

Technology has made it easier than ever for scammers to appear legitimate. Fraudsters can spoof government phone numbers, create realistic-looking websites, and send emails that mimic official agency communications. Some even use agency logos and language copied directly from government websites. Caller ID can no longer be trusted as proof that a call is genuine. Verifying information through official government websites or independently sourced contact information remains one of the best ways to avoid being fooled.

6. They Tell You Not to Contact Anyone Else

Scammers often try to isolate their victims. They may instruct you not to speak with family members, attorneys, financial institutions, or local authorities about the situation. This tactic prevents others from identifying the scam before money changes hands. Legitimate government agencies do not discourage you from seeking advice or verifying information. If someone claiming to represent the government tells you to keep the matter secret, that should immediately raise suspicion.

7. They Contact You Through Unexpected Texts and Emails

Text messages and emails have become increasingly popular tools for government-imposter scams. As mentioned above, there has been a rise in fraudulent messages claiming to be from agencies such as the IRS, Social Security Administration, Department of Motor Vehicles, and Medicare. These messages often include links directing victims to fake websites designed to collect personal information. Unexpected messages demanding payment or account verification should always be treated cautiously. When in doubt, contact the agency directly through official channels rather than using information provided in the message.

A Few Minutes of Verification Can Save Thousands of Dollars

Government-imposter scams succeed because they exploit trust, fear, and urgency. The FTC’s latest data shows that these scams continue to grow, costing Americans billions of dollars every year. Fortunately, the warning signs are often recognizable once you know what to look for. Threats, unusual payment requests, demands for personal information, spoofed phone numbers, and pressure to act immediately are all common indicators of fraud. So, don’t panic. Take a deep breath and verify the claim through an official government channel. Ultimately, it could save you from financial loss and a boatload of stress.

Have you ever received a suspicious call, text, or email claiming to be from a government agency? Share your experience in the comments below.