Cornerstone May 2025 Issue #64

Government Impersonation Frauds

May 2025 ISSUE #64 Designated HSI Cornerstone representatives across all HSI field offices. Cross-Border Financial Crime Center (CBFCC)—a public-private partnership—to strengthen the United States' anti-money laundering framework. The CBFCC convenes federal law enforcement agencies, partner nation authorities, banks and financial institutions, and financial technology companies to promote collaboration on cross-border financial crime.  BE ON THE LOOKOUT FOR ISSUE #65 June 2025 Money Laundering Typologies Want to schedule a Cornerstone presentation? Email Cornerstone@hsi.dhs.gov  for more information. HSI special agents are available to provide training and share red flag indicators, criminal typologies, and methods with businesses and industries that manage the very systems that terrorists and criminal organizations seek to exploit. Government Impersonation Frauds What You Need to Know Government impersonation frauds have become a significant and growing threat in recent years, with fraudsters increasingly adopting sophisticated tactics to deceive individuals. These frauds typically involve criminals posing as representatives of trusted government agencies, such as the IRS, Medicare, the FBI, and others. By leveraging the authority and credibility associated with these organizations, fraudsters aim to instill fear and urgency in their victims, compelling them to divulge sensitive personal information or make immediate payments. The methods employed by these fraudsters are becoming more advanced. They often spoof legitimate phone numbers, use official-sounding language, and reference real agency names and case numbers to create a facade of authenticity. According to the Federal Trade Commission (FTC), in 2021, adults aged 18–59 were 34% more likely than those over 60 to report losing money to fraud, with government impersonation frauds being among the most prevalent. In 2023 alone, Americans reported losses exceeding $1.3 billion due to impersonation frauds, marking a staggering increase from previous years. The impact of these frauds is particularly concerning among younger demographics. A UK Finance survey revealed that 71% of individuals aged 18–34 reported being contacted by impersonation fraudsters, with 73% of those targeted persuaded to share personal information or send money. Despite 90% of 18–24-year-olds expressing confidence in identifying frauds, only 27% consistently verify unexpected messages or contacts. Victims of these schemes often experience not only financial loss but also emotional distress, as the violation of trust can leave lasting impacts. In 2023, over 101,000 individuals aged 60 and above fell victim to frauds, resulting in losses exceeding $3.4 billion, according to the U.S. Sun. As these frauds continue to evolve, it is essential for individuals to understand how legitimate government agencies communicate and to be aware of the common tactics used by fraudsters. By educating ourselves and others about the signs of government impersonation fraud, we can better protect ourselves and our communities from falling victim to these fraudulent schemes. What Do These Frauds Look Like? Fraudsters employ a variety of tactics to deceive individuals, often contacting them through multiple channels. The most common methods include: Phone Calls: Fraudsters may call you directly, using spoofed phone numbers that appear to be from legitimate government agencies. They often use aggressive tactics, claiming that immediate action is required to avoid severe consequences. Text Messages: You might receive texts that appear to be from government agencies, urging you to click on links or provide personal information. These messages may include alarming language or threats to create a sense of urgency. Emails: Fraudulent emails can mimic official communications, complete with logos and formatting that resemble legitimate agency correspondence. These emails often contain links to phishing websites designed to capture your personal information. Social Media Messages: Fraudsters may reach out via social media platforms, posing as government representatives. They may use fake profiles or impersonate official accounts to gain your trust. Fraudsters often exhibit the following behaviors: Claim to be Representatives of U.S. Government Agencies: Fraudsters frequently impersonate well-known agencies, leveraging the trust associated with these organizations to manipulate victims. Use Official-Sounding Titles: They may introduce themselves with titles that sound authoritative, such as "Senior Agent" or "Fraud Investigator," to lend credibility to their claims. Possess Personal Information: Fraudsters may have access to some of your personal information, such as your name, address, or Social Security number, which they use to appear legitimate and to instill fear. Create a Sense of Urgency: They often demand immediate payment or personal information, threatening dire consequences such as arrest, fines, or loss of benefits if you do not comply quickly. Commonly Impersonated Agencies Internal Revenue Service (IRS) The IRS is one of the most impersonated agencies in fraud cases. As of March 2016, over 1 million Americans had received threatening calls from fraudsters posing as IRS officials, with reported losses totaling over $29 million. In 2023, the IRS reported that fraud impersonation remained a top concern, with thousands of complaints filed each month. Here is how the IRS will communicate with you: No Unsolicited Contact: The IRS never initiates contact via email, text, or social media to request personal or financial information. The IRS will only communicate through official channels. Official First Contact: The first communication from the IRS is typically through an official letter sent by mail, detailing any issues or actions required. This letter will include specific information about your tax account. Follow-Up Calls: The IRS may follow up with a phone call only after mailing a letter and in specific cases, such as audits or collections. According to the IRS, legitimate calls will come from a representative who can provide details about the letter sent. No Threats or Unusual Payment Requests: The IRS does not threaten arrest, license revocation, or demand immediate payment via gift cards or wire transfers. In 2023, the IRS reiterated that it will never ask for payment in these forms, emphasizing that legitimate communications will not involve high-pressure tactics. Medicare/Medicaid The Administration for Community Living reports that Medicare fraud costs the U.S. government and taxpayers around $60 billion each year. In 2022, the Department of Health and Human Services (HHS) reported that Medicare fraud accounted for approximately 10% of total Medicare spending. Below, you'll find how these agencies will reach out to customers: Official Communication: Official communication from Medicare is usually conducted via mail, ensuring that you receive important information in securely. In 2023, Medicare sent out millions of official letters regarding benefits and enrollment. No Unsolicited Calls: Medicare will never call you to offer services or demand personal information unless you've initiated the call or have a scheduled appointment. In 2022, the HHS reported a significant increase in reported fraud cases involving unsolicited calls. Caller ID Spoofing: Fraudsters often spoof caller IDs to make it appear as though they are calling from "Medicare." If someone asks for your Social Security or bank account number, this is always a red flag. The FTC reported that in 2021, over 40% of reported fraud cases involved impersonation of government agencies, with Medicare being a common target. Federal Bureau of Investigation (FBI) From December 2023 through February 2025, the FBI received over 100 reports of fraudsters impersonating IC3 agents. The FBI has noted a rise in reports of such impersonations, with victims losing significant amounts of money. Here's how the FBI will contact you should they need to: No Demands for Money: The FBI will not call or email you demanding money or threatening arrest. Legitimate inquiries will not involve financial transactions. In 2023, the FBI reported that over 90% of their communications with the public are conducted through formal channels. Formal Contact: Contact from the FBI is formal and will occur in-person or via official letter, especially for investigations. Communication will never take place through social media sites or messaging apps like Telegram. The FBI emphasizes that any legitimate contact will be documented. Identifiable Agents: Any legitimate contact will come from an identifiable agent using a .gov email address and will include a verified badge or business card. In 2023, the FBI issued guidance to the public on how to verify the identity of agents to prevent fraud. Social Security Administration (SSA) In 2020, government impostor frauds were the number one type of fraud reported to the FTC, with the majority being Social Security impersonation. There were 166,190 reports about Social Security frauds, with an average loss of about $1,500. In 2023, the SSA reported a significant increase in impersonation cases, with victims losing millions. Here's how the SSA will contact you: Limited Phone Calls: The SSA will typically not call you unless you've requested a call or are already involved in an ongoing matter. In 2022, the SSA received thousands of reports of impersonation calls, prompting public warnings. No Threats or Demands: They will never suspend your Social Security number, demand money, or threaten you. Legitimate communication will not involve intimidation. The SSA has stated that they will only communicate through official channels. Official Communications: Official communications from the SSA come via mail and only through secure online portals if you've opted in for electronic notifications. In 2023, the SSA implemented new security measures to protect against fraud. Federal Trade Commission (FTC) Fraudsters impersonating the FTC often call individuals claiming they've won a lottery but need to pay taxes immediately to receive their earnings. In 2021, the FTC reported that fraudsters impersonating the FTC accounted for a significant portion of consumer complaints. Here's how the FTC will contact you if they need to: No Threats or Requests for Money: The FTC will not contact you to threaten arrest, ask for money, or offer a prize. Any legitimate communication will not involve financial demands. In 2023, the FTC reiterated that they do not engage in such practices. Response to Reports: If you report an issue to the FTC and provide your email address, they will respond to you via email. This communication will be clear and professional. In 2022, the FTC processed millions of consumer complaints, emphasizing their commitment to transparency. Refunds: If you're expecting a refund or check from the FTC, you will receive it via check, prepaid debit card, or PayPal, not through unusual payment methods. The FTC has stated that they will never ask for personal information to process refunds. What To Do If You Are Targeted If you believe you have been targeted by a fraudster impersonating a government agency, it's crucial to take immediate action to protect yourself. Follow these steps: Hang Up Immediately or Don't Respond: If you receive a suspicious call or message, hang up or ignore it. Do not engage with the caller or respond to messages, as this may encourage further contact. Do Not Share Personal or Financial Information: Never provide personal details such as your Social Security number, bank account information, or credit card numbers to anyone who contacts you unexpectedly. Legitimate government agencies will not ask for sensitive information in this manner. If You Gave Your Personal Information to a Fraudster: If you have already shared personal information, visit IdentityTheft.gov immediately to file a complaint. This site provides resources to help you understand the steps you need to take to protect your identity and recover from potential fraud. Report the Fraud to the Appropriate Agency: Report the incident to the relevant authorities, such as the Federal Trade Commission (FTC), Social Security Administration Office of Inspector General (SSA OIG), or your local law enforcement. Reporting helps agencies track fraud patterns and may assist in preventing others from becoming victims. If You Have Already Sent Money: If you have sent money to a fraudster, contact your bank or credit card company immediately. They may be able to reverse the transaction or provide guidance on how to recover your funds. Additionally, report the incident to your financial institution. Consider Placing a Fraud Alert or Credit Freeze: To protect yourself from identity theft, consider placing a fraud alert on your credit report. This alerts creditors to take extra steps to verify your identity before opening new accounts in your name. You can also consider a credit freeze, which prevents creditors from accessing your credit report entirely. Do Not Click Any Links in Unexpected Emails, Texts, or Social Media Messages: Be cautious of unsolicited messages that contain links or attachments. Clicking on these links can lead to phishing websites designed to steal your personal information or install malware on your device. Always verify the source before clicking on any links. By taking these proactive steps, you can help safeguard your personal information and mitigate the risks associated with government impersonation fraud. Staying informed and vigilant is key to protecting yourself and your financial future. Where to Report Frauds If you encounter fraud or believe you have been targeted by fraud or have been a victim of fraud, it is essential to report it to the appropriate authorities. Below are the key agencies and their contact information for reporting various types of fraud: Report IRS Frauds: Website: www.irs.gov Phone: 1-800-366-4484 Details: The IRS encourages individuals to report any suspicious calls or emails claiming to be from the IRS. You can report these incidents through their website or by calling the provided number. Report Medicare Fraud: Phone: 1-800-MEDICARE (1-800-633-4227) Details: If you suspect Medicare fraud, you can report it directly to Medicare by calling the number above. You can also visit the Medicare website for additional resources and reporting options. Report SSA Frauds: Website: oig.ssa.gov Details: The Social Security Administration (SSA) Office of Inspector General (OIG) allows you to report fraud, waste, and abuse related to Social Security programs. You can file a report online or by calling their hotline. Report General Frauds: FTC Reporting: reportfraud.ftc.gov IC3 Reporting: www.ic3.gov Details: The Federal Trade Commission (FTC) provides a platform for reporting various types of fraud. The Internet Crime Complaint Center (IC3) allows you to report online fraud, including fraud that occurs over the internet. Office of Inspector General (HHS): Website: oig.hhs.gov/fraud/report-fraud Details: The Department of Health and Human Services (HHS) Office of Inspector General allows you to report fraud related to HHS programs, including Medicare and Medicaid. You can submit a report online through their website. Additional Reporting Resources Local Law Enforcement: If you believe you have been a victim of fraud, consider reporting the incident to your local police department. They may be able to assist you in recovering lost funds or provide guidance on the next steps. Consumer Financial Protection Bureau (CFPB): For financial frauds, you can report issues to the CFPB at consumerfinance.gov/complaint. By reporting fraud, you help authorities track fraudulent activities and protect others from becoming victims. Your vigilance is crucial in the fight against fraud. Red Flag Indicators Unusual Transaction Patterns: Customers may request large withdrawals or transfers that are inconsistent with their usual banking behavior, especially if the funds are to be sent via unconventional methods (e.g., gift cards, wire transfers to unfamiliar accounts). Customer Claims of Urgent Government Action: Customers may report receiving urgent calls or messages from individuals claiming to be from government agencies, demanding immediate payment or personal information. This can include threats of arrest or legal action. Requests for Confidential Information: Customers may be asked to provide sensitive information (e.g., Social Security numbers, account details) over the phone or through email. Legitimate government agencies typically do not request this information in such a manner. Inconsistent Customer Behavior: A sudden change in a customer's behavior, such as increased anxiety or urgency in their requests, may indicate they are being pressured by fraudsters. Suspicious Caller ID: If a bank employee receives a call from someone claiming to be a government official but the caller ID appears suspicious or does not match known government agency numbers, this could indicate a fraud attempt. High-Pressure Sales Tactics: Customers may report being pressured into making quick decisions regarding their accounts or investments, often under the guise of avoiding legal consequences. Unusual Payment Methods: Requests for payment through non-traditional methods (e.g., gift cards, cryptocurrency) should raise red flags. Legitimate government agencies do not accept these forms of payment. Documentation Requests: Customers may present unusual or poorly formatted documentation purportedly from government agencies. Legitimate documents will typically be well-organized and professionally formatted. Reports of Spoofed Communications: Customers may mention receiving emails or calls that appear to be from government agencies but contain grammatical errors, misspellings, or unverified email addresses. Inquiries About Account Security: Customers may express concerns about their accounts being compromised or ask if their Social Security number has been suspended, which may indicate they are being targeted by fraudsters. Requests for Confidentiality: If a customer mentions that they were instructed to keep the communication confidential or not to discuss it with anyone, this is a significant warning sign. Frequent Claims of Government Contact: Customers who frequently claim to have been contacted by government officials regarding their accounts or personal information may be victims of ongoing fraud. HSI's mission is to protect the United States by investigating global crimes that impact our local communities. We have over 10,000 employees stationed in over 235 U.S. cities and more than 50 countries worldwide. This gives us an unparalleled ability to prevent crime before it reaches our communities. HSI encourages the public to report suspected suspicious activity through its Tip Line. 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