In 2023, the US faced a surge in government and business impersonation scams, resulting in over $1.1 billion in losses and nearly 500,000 reported incidents.
Description
Scammers employed various tactics such as fraudulent account alerts, fake subscription renewals [1] [2], bogus giveaways [1], false criminal claims [1], and fictitious package delivery issues [1]. Phone calls were the primary method of contact [1], followed by emails and text messages [1]. Bank transfers and cryptocurrency were the preferred payment methods [2], leading to $593 million in losses. The FTC introduced a new rule to combat these scams, seeking restitution for victims and penalizing violators [2]. Multiple organization spoofing in a single scam campaign blurred the lines between business and government impersonation scams [1].
Conclusion
The significant increase in losses from impersonation scams highlights the need for enhanced vigilance and security measures. The FTC’s efforts to combat these scams are crucial in protecting consumers. The evolving tactics of scammers necessitate continuous adaptation and collaboration between government agencies and businesses to prevent future financial losses.
References
[1] https://www.scmagazine.com/brief/ftc-impersonation-scam-losses-exceed-1-1b
[2] https://www.ftc.gov/news-events/news/press-releases/2024/04/ftc-announces-impersonation-rule-goes-effect-today
