How to Avoid Imposter Scams | Take Care

Imposter scams have surged over the past five years. The number of reports of these scams filed with the Federal Trade Commission rose 70% from 2020 to 2024, according to analysis of FTC data by Carefull. And losses to imposter scams more than doubled from $1.2 billion to $2.9 billion over this period.

Clearly, fraudsters have become increasingly good at creating convincing stories to con consumers. And it has gotten harder to evade them. That’s why it is crucial to understand what imposter scams are, how to spot them, and how to protect yourself against them.

By following these precautions, you can reduce the likelihood of becoming a victim and keep your personal information and finances safe.

What is an imposter scam?

An imposter scam involves a fraudster who claims to be someone else to gain access to your personal information, money or both. These scammers typically pose as trusted authority figures, such as government officials or company representatives, or even close friends or family members. They use various tactics to deceive you into thinking they are legitimate and often create a sense of urgency or fear to pressure you into taking immediate action.

Imposter scams can take many forms, but they all share one common goal: to exploit your trust for personal gain.

Government imposter scams

Scammers pose as representatives of the IRS, FTC, FBI, Medicare, Social Security Administration, local law enforcement or even fake government agencies to scare victims into paying fake fees or taxes or sharing sensitive personal information. Government imposter scams often begin with a phone call but also can start with an email, text message, social media message or letter. Scammers sometimes will use names of real government employees, provide badge numbers and use technology to make it appear that the call is coming from a government agency.

Claims government imposter scammers make:

• You owe taxes.
• You are being audited.
• You qualify for a special tax credit or government payment.
• Your Social Security number or benefits are being suspended.
• You’re eligible for better or cheaper Medicare coverage.
• You’ve won a sweepstakes and have to pay taxes or a fee.

How to spot government imposter scams: Federal government agencies such as the IRS will not call, email or text you out of the blue. They typically initiate contact by mail. Government agencies won’t demand that you wire money or pay with a gift card, payment app or cryptocurrency, according to the FTC. They also won’t threaten to arrest you.

How to avoid government imposter scams: Hang up on anyone who calls and claims to be with a government agency. Don’t respond to emails, texts or social media messages that might appear to come from a government agency or click on any links in the messages.

Tech support imposter scams

Scammers pretend to be technicians with well-known companies such as Microsoft and Best Buy’s Geek Squad and claim that there is a problem with your computer. They make contact by calling, emailing or using a pop-up message that appears on your computer and looks like an error message or antivirus software.

Claims tech support imposter scammers make:

• There is a virus or suspicious activity on your computer.
• Your antivirus software needs to be updated.
• Your Geek Squad membership is renewing and you’ll be automatically charged.

How to spot tech support imposter scams: Real tech companies won’t contact you by phone, email or text message to tell you there is a problem with your computer, according to the FTC. They also won’t ask you to call a number in a pop-up message or click on a link for help.

How to avoid tech support imposter scams: Hang up on unsolicited callers offering tech support, and don’t respond to emails or text messages with similar claims. Don’t click on pop-ups with virus warnings.

Business imposter scams

Scammers claim to be with well-known businesses, such as Amazon, Netflix, shipping companies, and even banks, credit unions and other financial institutions. Typically, they reach out by text—but might call or email—to alert you to a problem with your account, a suspicious charge or issues delivering a package.

Claims business imposter scammers make:

• Your account is being suspended or membership is being canceled.
• There’s a package that can’t be delivered unless you provide additional information.
• There’s an invoice that needs to be paid.

How to spot business imposter scams: Scammers create a sense of urgency by claiming that you must call, click a link or open an attachment immediately to claim a reward or avoid a negative outcome. They ask for sensitive account information such as passwords and demand unusual forms of payment, such as gift cards, wire transfers and cryptocurrency.

How to avoid business imposter scams: If you get a call, text or email about your account or a purchase, don’t respond. Log onto your account to review transactions, or call the company directly to see if there is a problem.

Romance scams

Romance scams typically begin on dating sites or social media platforms. Bad actors steal photos and create fake online identities to pose as people looking for relationships.

Claims romance scammers make:

• They work or live overseas and can’t meet in-person.
• They are in the military serving overseas or an offshore oil rig worker.
• They need money for medical bills.

How to spot romance scams: Be wary of anyone you meet online who says all the right things, escalates the relationship quickly, makes excuses not to meet in-person then asks for money.

How to avoid romance scams: If you have started a relationship with someone online, do a reverse image search of the person’s photo. Never send money or gift cards to someone you haven’t met in-person.

Person-in-need imposter scams

Scammers pretend to be a relative or close friend who is in urgent need of financial help.

Claims person-in-need scammers make:

• They claim to be your child or grandchild who is in jail.
• They claim to be your child or grandchild stranded in another country.

How to spot person-in-need scams: Scammers might claim to be your grandson or granddaughter rather than use the actual name of a relative. They will demand that you don’t let other family members know about the situation.

How to avoid person-in-need scams: Choose a code word that you, your family and close friends can use to identify each other in suspicious calls. If you’re unsure who is calling, hang up and call or text the person who supposedly was calling.

Cameron Huddleston

Cameron Huddleston is an editor-at-large at Carefull and the author of Mom and Dad, We Need to Talk: How to Have Essential Conversations With Your Parents About Their Finances. You can learn more about her at_ CameronHuddleston.com or follow her on Instagram at @cameronkhuddleston._