Scammers are always working on the next creative ploy to steal your personal information and hard-earned money. However, some scams have stood the test of time and continue to wreak havoc on the finances of unsuspecting victims. You may wonder how people continue to fall for these scams – the answer is a combination of fear and trust.
Fraudsters impersonating government agencies have higher credibility than traditional phishers or extended warranty schemes. Then, they add a touch of fear to the equation, and victims panic and start to comply with the scammers’ requests.
The best defense against any scam is knowledge. Understanding how these ploys work can help you avoid falling victim, protect your finances, and provide peace of mind.
How Government Scams Work
With government impersonation scams, fraudsters claim to be representatives of federal agencies such as the Internal Revenue Service (IRS), Social Security Administration (SSA), Medicare and Medicaid, or other official offices. Posing as an employee of one of these agencies, the scammer may contact unsuspecting individuals by phone call, email, or text. The bad actor will attempt to gain their target’s trust and then proceed to extort personal data or even money.
The scammers often claim that an urgent issue requires your immediate attention, such as unpaid taxes or unclaimed benefits. However, these tall tales are intended to elicit panic and trick victims into complying without question.
While these and other types of scams often target older or vulnerable adults, credit union members of all ages should be aware of them and know how to avoid falling victim to them.
Examples of Government Imposter Scams
While there are multiple variations of government impersonation scams, they all tend to follow the same formats. Here are some of the most common ploys members might encounter:
-
IRS: A fraudster claiming to be from the Internal Revenue Service will contact you and claim that you owe back taxes. They often threaten arrest if you do not comply and make a payment immediately.
IRS scams are generally easy to identify because this agency will NEVER call, text, or email you out of the blue. All communications first come via USPS mail. Typically, the only times the IRS will call or email you are if you have an ongoing issue or fail to respond to multiple official notices in the mail.
-
Social Security: Scammers pretending to be from the Social Security Administration often call, email, or text potential victims, claiming their benefits are in jeopardy or their Social Security Number (SSN) has been compromised. They typically will ask you to verify your SSN and other personal information, which they use to commit fraud or sell to other bad actors.
Like the IRS, the Social Security Administration will NEVER call, email, or text you spontaneously. Any communications from the SSA will typically come via USPS mail. The SSA will also never call and threaten to revoke or suspend your SSN.
-
Medicare & Medicaid: With these scams, you are notified of an issue with your benefits, a new benefits card is required, or that you can claim a free medical device. The catch is that you must provide your Medicare or Medicaid information. They may also claim you received extra benefits and must repay the balance or face consequences, such as losing your benefits.
Remember that cards are provided for free for those who are eligible. Neither of these agencies will request payment for your card, randomly threaten to revoke your benefits, or attempt to sell you something.
-
Immigration: There are many immigration-related scams today. Typically, a caller claims to be an employee of the United States Citizenship and Immigration Services (USCIS) or Immigration and Customs Enforcement (ICE), stating there is a problem with your citizenship status. They often make threats about your immigration status unless you pay fees associated with the issue.
USCIS and ICE will NEVER call, text, or email you demanding payments over the phone. As with most government agencies, their official communications generally come via USPS mail.
-
Law Enforcement: While these scams are mostly tied to local government organizations, they still use the same tactics of combining credibility and fear. Fraudsters will call a victim claiming to be a police officer or court official. Usually, the scams state there is a warrant for your arrest or that you failed to appear in court for jury duty. The scammers will request that you pay a fine to settle the issue.
While local governments might have different policies and procedures, you can rest assured none will call, email, or text requesting random payments. If you are unsure about an “official” communication you receive, always call the department directly from the number listed on their official website.
Common Red Flags of Government Scams
While government imposter scams can often sound legit, especially because it’s a government agency threatening you, there are common red flags to help you identify scams.
-
Unexpected Contact: Immediately be on guard if you receive a call, text, or email about taxes or benefits, such as Social Security, Medicare, or Medicaid. These agencies will always send official communications through USPS mail.
-
Call or Email Spoofing: Scammers can spoof phone numbers and email addresses to appear as though they are coming from a legitimate agency. Official government emails will come from a “.gov” domain.
-
Poor Language: A clear red flag of any scam is messages with prevalent spelling mistakes, grammatical errors, improper punctuation, formatting glitches, and more.
-
Pressure & Urgency: Bad actors create high-pressure scenarios to encourage you to act fast – before you can think things through. For example, they may threaten arrest or hefty fines and hound you with constant calls or messages to incite panic.
-
Untraceable Payment: An easy red flag to identify is how the scammer requests payment. Usually, fraudsters ask for payments via methods that are difficult to trace, such as gift cards, cryptocurrency, or peer-to-peer payment apps. Any demands to pay in these manners are tell-tale signs of a scam. No government agency will accept these payment options.
-
Time-Sensitive Demands: Remember, most things the government does take a while to process, typically several days to weeks or even months. Any demands for immediate action within hours or only a few days are sure signs of a scam.
What to Do If You’re a Fraud Victim
If you feel that you have been affected by a government imposter scam or know someone who you suspect has been targeted, follow these steps:
-
File a report directly with the government agency that the scammer impersonated.
-
Report the scam to the Federal Trade Commission (FTC) at FTC.gov/complaint.
-
File a complaint with your state’s Attorney General.
-
File a police report with local law enforcement.
-
File a fraud claim with the credit union and other necessary financial institutions.
-
Visit IdentityTheft.gov to report identity theft and receive resources to create a recovery plan.
We’re Here to Help!
Unfortunately, fraud isn’t going anywhere. Scammers will always come up with new ploys to separate you from your money. Your best protection is knowing how these scams operate and becoming familiar with their common red flags. While government scams can be scary and appear legitimate, remember that nearly all agencies will contact you via USPS mail first – not by phone, text, or email.
If you believe you were a victim of fraud, please contact us immediately. You can stop by the Credit Union or call 410-687-5240, and a team member will gladly assist you.