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Impostor scams are exactly what they sound like — criminals pose as someone (or something) else to try to convince you to send them money.
This is consistently one of the top three types of fraud reported to the Federal Trade Commission (FTC), with losses in this category totaling nearly $3 billion in 2024 (the numbers are likely far higher because scams are notoriously underreported). While people of all ages report losing money to impostor scams, older adults are far more likely to lose tens or even hundreds of thousands of dollars. The combined losses reported by older adults who lost more than $100,000 increased eightfold, from $55 million in 2020 to $445 million in 2024, according to the FTC.
In a new alert, the FTC notes a growing wave of government and business impersonation scams aimed squarely at retirees’ life savings.
Impostor scams generally start with an unsolicited email, phone call, text , or social media message. Scammers impersonate people and organizations you would ordinarily trust, or at least hear out.
They say that resolving the problem or claiming the prize is a simple matter of making an immediate payment or providing personal data such as a Social Security or bank account number.
Most impostor scams are quick hits — the goal is to cajole or frighten you into making a rash decision, then disappear. But some criminals create entire fake personas on dating sites or social media and then invest weeks in cultivating relationships online. The method is different, but the end is the same: The impostor will eventually ask for money, for a reason that sounds plausible and by a method that’s probably not traceable.
Criminals might adopt any number of guises, including:
1. A government official. Impostors will often claim to be officials from the Social Security Administration, Medicare, or the IRS. They may say you are in danger of losing benefits, owe back taxes,s or have missed jury duty.
2. A romantic partner who needs help. Someone you meet on an online dating site seems like a dream partner. Eventually, the object of your affection, who always has an excuse as to why you can’t meet in real life, asks for money for a sick relative, to get them out of trouble or for airfare to come visit you.
3. A finance expert with an investment opportunity. An online relationship may evolve into an offer to make money in cryptocurrency.
4. A lottery or sweepstakes official. You’re owed money from the government that you haven’t collected, you won the lottery or sweepstakes. You will probably be asked to pay a lesser amount than the amount you are owed in order to collect.
5. An official notifying you that you have been left an inheritance. You may get an official-looking letter or email claiming that a long-lost relative has left you a bequest, but you have to pay fees, taxes, or duties to access it.
6. A charity. Criminals claim to be calling from charities and tell you they are following up on a pledge you made. They often play on your generosity after a natural disaster or pretend to be collecting for veterans.
7. A family member in trouble. Artificial Intelligence (AI) has made these scams more sophisticated, with criminals now able to replicate your loved one’s voice. In addition to the plea for help in your loved one’s voice, criminals may pose as doctors, lawyers, or court officials in order to extort money for fines, bail, or medical bills.
8. An account representative. You may get a text or phone call from companies you do business with — for example, Amazon, the local power utility, or your bank — telling you there’s a problem with your account to get your login credentials, or they may claim you owe money and risk your account being frozen if you do not pay up.
9. A celebrity who wants to be your friend. It can be thrilling when a celebrity you admire reaches out to you on social media, but it’s more likely to be a criminal using photos and an AI-generated voice to try to steal your money.
10. A tech specialist who wants to help with your computer. A caller claims to be from a tech company or internet service provider that has detected a virus or malware on your computer.
The matter is urgent, and you need to pay or decide something immediately. Whatever the pose, they don’t want you to have time to think. Some impostors pretend to be bearing good news — you’ve won a lottery, say, or a government grant. The tell is: You need to act immediately.
Only a certain type of payment method can be used. The person contacting you asks for payment by wire transfer, gift card, cryptocurrency, or cash. Scammers favor these methods because they are hard to track.
It’s an unsolicited call. Even if caller ID says it’s a call from the IRS, or your loved one’s phone, scammers can use spoofing tools to make it appear they are calling from a genuine government or business number.
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