FTC issues warning over impersonation frauds across the US

March 20, 2024
FTC Federal Trade Commission US Fraud Alert Impersonation

The Federal Trade Commission (FTC) has distributed a strong caution to the public, highlighting a recent concern where scammers are pretending to be FTC employees to carry out financial fraud schemes across the United States.

There have been reports indicating that people are being targeted through various channels, such as phone calls, emails, and text messages, with fraudsters assuming the identities of FTC staff and using persuasive tactics to convince victims to transfer money.

 

FTC warns of increasing financial losses from impersonation scams, notably affecting the elderly.

 

The typical financial loss associated with these FTC impersonation scams has significantly increased over the past five years, reaching $7,000 in 2024 from $3,000 in 2019. The impact on the elderly is especially concerning; in 2023 alone, the FBI’s Internet Crime Complaint Center (IC3) received over 14,000 complaints about government impersonation schemes. Due to the significant losses resulting from these fraudulent activities—which now surpass $394 million—it is vital that this increasing threat be addressed.

In an effort to combat impersonation fraud and encourage customer awareness, the agency has released proactive guidelines that provide detailed instructions on how to recognise and report impersonation scams. Customers are urged to use resources like ReportFraud.ftc.gov or ReporteFraud.ftc.gov to report any suspicious activity and stop more financial harm from occurring.

The public needs to remain vigilant and exercise caution when encountering communications purportedly from the FTC. The agency has reiterated that it would never instruct consumers to transfer money to safeguard their assets, use Bitcoin ATMs, purchase gold bars, demand cash withdrawals, threaten arrest or deportation, or promise prizes. These warning signs should prompt individuals to verify the authenticity of any message claiming to be from the agency.

Furthermore, the FTC has announced the finalisation of the Government and Business Impersonation Rule, providing the agency with stronger tools to effectively combat impersonation fraud and facilitate the restitution of funds to affected consumers. These measures underscore the FTC’s commitment to protecting consumers from financial exploitation and holding fraudsters accountable for their unlawful activities.

The FBI’s 2023 Internet Crime Report uncovered an upsetting pattern given the rise in online crime, particularly government impersonation schemes. Hackers have been observed to be using a variety of strategies, such as ransomware, investment fraud, business email compromise (BEC), and tech/customer support scams, given the $12.5 billion in recorded losses.

As cybercrime continues to pose a significant threat to individuals, particularly older adults who are more vulnerable, everyone must stay informed and vigilant. By adopting proactive measures, such as exercising caution with online communications, promptly reporting suspicious activities, and staying updated on the latest fraud prevention guidelines, individuals can help mitigate the risk of falling victim to financial scams and safeguard their hard-earned assets.

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