In 2023, payments from government impersonation scams doubled according to FTC
New data from the Federal Trade Commission (FTC) shows that government impersonation scammers are increasingly targeting consumers for cash payments. The amount of cash reported lost to these scams nearly doubled from 2022 to 2023.
In 2023, consumers reported losing $76 million to government impersonation scammers when paying in cash, a significant increase from $40 million in 2022 (up by 90%). Just in the first quarter of 2024, consumers have already lost $20 million to these scams involving cash payments.
The median loss for consumers who fell victim to government impersonation scammers in early 2024 was $14,740, which is notably higher than losses incurred through other payment methods. Reports indicate that consumers were either mailing cash or giving cash to drivers sent to collect the money.
The FTC, along with various other government agencies such as the Department of Justice, FBI, IRS, and more, are collaborating to raise awareness about these scams and educate consumers on how to avoid falling victim to fraudulent schemes.
Scammers often pretend to be government entities, employing various tactics to convince their targets to urgently send money to address fabricated issues. It is crucial to remember that legitimate government agencies will never request money or personal information through calls, emails, texts, or social media messages. Any such demand is a red flag for a scam. Total reported losses to government impersonation scammers using all payment methods amounted to $618 million in 2023, marking an increase from $497 million in 2022 and $428 million in 2021.
