The COVID-19 pandemic saw a rise in reports of scammers pretending to be from government agencies. While reports slowed since peaking in early 2021, victims lost more than twice as much money, according to new research by Better Business Bureau.
BBB published an in-depth study in 2020 to educate the public about how to detect Government Impostor Scams. In 2021, consumers’ reports to the Federal Trade Commission soared with losses of more than $445 million in government impostor scams, including impostors offering phony government grants, up from $175.4 million reported in 2020.
In government impostor schemes, scammers may spoof a legitimate government agency phone number to call a potential victim. The scammer threatens arrest if the consumer fails to comply with their requests. Scammers typically ask for payment in gift cards to rectify the problem.
In government grant fraud, scammers contact the consumer using an acquaintance's hacked social media account. The consumer is told about a lucrative grant program that only costs a small fee to receive. Once the first payment is sent, the scammer continues to add various fees. The consumer never receives the grant and loses whatever money and personal information they sent they sent to the scammers.
Government agencies like the Social Security Administration, IRS or FBI do not call people with threats or promises of money. Do not trust your caller ID, as scammers can spoof legitimate numbers. If you receive a phone call, check with the real agency by going to the agency's website directly, then click contact us to find out how to connect. Do not trust numbers that may be included in emails or text messages. Social Security numbers are never “suspended.” The Social Security Administration will never threaten to arrest you because of an identity theft problem.
