FTC Reports Major Increases in Cash Payments to Government Impersonation Scammers and Warns of Risks

Scammers posing as the U.S. government are targeting consumers who pay with cash, with consumers reporting losing $20 million to government impersonation scams when paying with cash in the first quarter of 2024 alone, according to the latest data from the Federal Trade Commission (FTC).

The amount of cash lost to these scams nearly doubled from 2022 to 2023, according to the FTC. In 2023, consumers lost $76 million when paying cash to government impersonation scammers, up 90% from $40 million in 2022.

Consumers who paid cash to scammers posing as the government lost a median of $14,740 in the first three months of 2024, far more than any other payment method. 

Reported losses to government impersonation scammers across all forms of payment reached $618 million in 2023, up from $497 million in 2022 and $428 million in 2021.

Consumers reported that they had mailed cash or handed cash to drivers sent to collect it. Scammers often pose as government agencies, from local police to federal agencies, and while the details of the pitch may vary, a common element is that their target consumers need to send money or transfer money to solve an urgent problem or serious issue. This message is usually accompanied by dire warnings or threats designed to put the target in a mental state of urgency so that they can ignore any concerns they may have.

The FTC notes a key fact: government agencies will never call, email, text, or message you on social media to ask for money or personal information, and they will never demand a payment. Only a scammer will do that.

The FTC is working with the Department of Justice, the FBI, and other agencies to raise awareness of these scams and help consumers understand how to avoid being scammed and handing over their hard-earned money.

“The impact of government impersonation scams is massive across the board, costing consumers millions,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “For consumers who are convinced by scammers to pay cash, the harms are amplified even further. We’re glad to join with other agencies across the federal government to raise awareness of this issue and work to put a stop to it.”