FTC: Impersonation Scams Cost Consumers Nearly $3 Billion in 2024

The Federal Trade Commission (FTC) says impersonation scams cost Americans almost $3 billion last year.

The FTC revealed that figure in a recent report on its actions in the wake of the Government and Business Impersonation Rule, which took effect last year.

Scams in which criminals impersonate businesses and government offices are consistently one of the top frauds reported to the FTC, leading to $2.95 billion in consumer losses in 2024. Since the new rule went into effect last April,  the FTC has brought five cases involving alleged violations and closed down 13 websites it said were illegally impersonating the commission online.

“The billions of dollars American consumers lose at the hands of impersonators is staggering,” Chris Mufarrige, director of the FTC’s Bureau of Consumer Protection, said in a news release. “The FTC will not hesitate to enforce the Impersonation Rule against bad actors.”

In the last year, the FTC has brought law enforcement actions under the Impersonation Rule against companies including Superior Servicing, which it accused of pretending to be affiliated with the Department of Education. This company, the FTC said, falsely promised student loan forgiveness, taking millions from student loan borrowers.

“In November, a federal court temporarily halted the scheme and froze its assets at the request of the FTC, which is seeking a permanent ban on the defendants’ deceptive practices,” the commission said.

The FTC says it has also spent the last year working with domain registrars to take down websites impersonating the commission.

Recent research by PYMNTS Intelligence highlights the pervasive nature of financial scams, with 30% of American consumers — 77 million people — reporting financial losses to scams in the last five years.  Fraudsters are also turning to social media and GenAI to perpetrate scams.

“The financial damage is often significant, with most victims losing over $500 and many suffering losses in the thousands,” PYMNTS wrote last month. “Perhaps more alarmingly, the report debunks the notion that these scams primarily target older generations, revealing that victims span all demographics, including age, education and income.”

Still, the study spotlights the fact that specific groups are more susceptible to certain types of scams based on their circumstances, such as younger people being more vulnerable to job search scams and older adults facing being at greater risk from fake eCommerce schemes.

“This tailored approach by scammers poses a challenge to consumer-facing financial institutions (FIs), as it not only inflicts financial and emotional damage on their customers but also erodes trust in the institutions and the broader financial system,” the report added.