Impostor Fraud’s $3.5 Billion Toll Highlights Growing Scam Threat

That trusted source — an email alert from your bank about a security breach, a caller impersonating a family member in trouble — can’t be trusted after all. Impostors are posing as banks, businesses, and government officials to rip off consumers.

And Americans reported losing $3.5 billion to impostor scams in 2025, according to the Federal Trade Commission.

More people reported they were victims of impostor fraud than any other fraud in 2025. In fact, nearly 1 in 3 fraud reports in 2025 were for impostor scams.

“The FTC will use every tool available to combat one of the most pernicious forms of fraud — government and business impersonation.” — Christopher Mufarrige, FTC Bureau of Consumer Protection Director

Impostor scammers reach out to victims by text, phone, email, social media, and even search engine results. 

The costliest kind of impostor fraud uses a fake security alert with the impostor posing as a bank. The impostor convinces victims they need to move their money to protect it. The extent of a victim’s losses often depend on the amount of available funds in their accounts.

In 2025, Americans reported losing nearly $1 billion to business impersonators with the highest losses coming from bank impersonators. Also in 2025, Americans lost $920 million to government impersonators. 

“The FTC will use every tool available to combat one of the most pernicious forms of fraud —government and business impersonation — and to protect the integrity of the digital economy,” said Christopher Mufarrige, Director of the Bureau of Consumer Protection.

Fraud losses for all types of fraud reached $16 billion in 2025. That's the highest number on record and an increase of about 25% from 2024, according to the FTC.

In 2025, the FTC took enforcement actions against these impostor scammers: 

• American Tax Service, an IRS impostor scheme.

• MediaAlpha, a government impostor scheme for selling health insurance.

• Click Profit, a business impostor money-making scheme.

• Blackstone Legal, a phantom debt business impostor scheme.

• Accelerated Debt Settlement, a government and business impostor scheme.

And in April 2026, the FTC filed a complaint against Innovative Partners for impersonating the government and a large insurance carrier.

The FTC is working with the Elder Justice Coordinating Council (EJCC) to raise awareness about impostor scams and other scams impacting older adults. According to the EJCC, scammers fake the caller ID to convince victims they are speaking with a government agency or a business.

Scammers give victims an employee ID or badge number or use the name of a real government employee. They also send official-looking letters with seals and made up government agency names, all to appear legitimate when they are not.

The Consumer Financial Protection Bureau also offers resources for protecting older adults from financial exploitation and fraud.

Here are some tips from the EJCC for avoiding impostor fraud. Don’t let an unexpected call or email convince you to send or transfer money, cryptocurrency, or gold to someone you don’t know.

Don’t believe anyone who tells you that you need to quickly move your money to protect it. If there is a problem with your account or identity, reach out to someone you trust. This is especially true if a stranger who has reached out says the matter is serious, is related to a crime or is from the government. These are all scams.

Avoid clicking on links or phone numbers in unexpected messages. Don’t trust the contact information in these types of messages. Instead contact the organization in question by using the real phone number, website or email address.

Report impostor fraud to the FTC by visiting ReportFraud.ftc.gov.