FTC Reports Alarming Rise in Losses from Impersonation Scams

According to the Federal Trade Commission (FTC), a significant increase in financial losses due to impersonation scams has been reported among older adults. The agency’s latest findings reveal that the number of individuals aged 60 and over who reported losing more than $10,000 to these scams has quadrupled from 2020 to 2024. Even more concerning, the number of those who lost over $100,000 has surged eightfold during the same period.

Impersonation scams typically involve fraudsters posing as government agencies or well-known businesses. They contact consumers to alert them about fictitious issues with their accounts or identities, coercing them into transferring money to “keep it safe.” The scammers often create a false sense of urgency, claiming that accounts are compromised, Social Security numbers are being misused, or online accounts have been hacked.

The FTC outlined various methods used by these scammers, including persuading victims to transfer funds, deposit cash into bitcoin ATMs, or hand over cash or gold to couriers. Once the assets are transferred, the scammers vanish with the money.

Impacts on Older Adults and Financial Losses

The FTC emphasized that while younger individuals also report losses from impersonation scams, older adults are disproportionately affected, especially when it comes to substantial sums. According to the FTC’s Consumer Protection Data Spotlight, scams targeting older adults have become increasingly prevalent, leading to alarmingly high financial losses.

In its April report, the FTC noted that impersonation scams consistently rank among the top frauds reported to the agency, resulting in staggering losses of $2.95 billion for consumers in 2024 alone. The agency has taken action against these fraudsters, initiating five cases for alleged violations of the Government and Business Impersonation Rule since its enactment. Additionally, it has shut down 13 websites that were illegally impersonating the FTC online.

Emerging Trends in Scamming Techniques

The rise in impersonation scams is echoed by findings from Cisco Talos, a threat intelligence research organization. In July, Cisco reported a surge in brand impersonation scams, where fraudsters send emails mimicking well-known brands. These emails often urge consumers to call a number about an urgent transaction, leading them to disclose sensitive information.

Research from the collaboration between PYMNTS Intelligence and Featurespace revealed that three in ten U.S. consumers have fallen victim to financial scams in the past five years, with most victims losing over $500. This data underscores the growing sophistication and prevalence of financial scams, particularly among vulnerable populations.

As these scams become more advanced and widespread, experts urge consumers to remain vigilant and report any suspicious communications to authorities. The FTC continues to work on strategies to combat these frauds, emphasizing the importance of public awareness in preventing further losses.