| Americans lost roughly $1.3 billion in 2023 to scammers pretending to be from the government or tech support, according to new FBI data, as Sam Sabin reports.
Why it matters: Record-breaking profits motivate fraudsters to double down on their schemes.
How it works: Scammers pretend to be a government official, tech support agent or customer service representative to trick people into sending money or other sensitive information their way.
- These impersonators typically call with fake stories that would motivate someone to share their private identifiable details with them.
- For example, a scammer might call to say someone will lose their Medicare benefits if they don’t pay a new fee. Or they might claim there’s a virus on their computer that requires the victim to buy a special tool.
By the numbers: U.S. adults’ losses from tech support and government impersonation scams have grown more than sevenfold since 2019, according to the FBI’s annual internet crime report, released last week.
- In 2019, the FBI received 27,506 complaints of government and tech support impersonation scams, resulting in $178.3 million in losses.
- By 2023, those losses had topped $1.3 billion from 51,750 reports.
The big picture: Impersonation scams have become easier due to the growing availability of generative AI tools and the popularity of remote work.
Between the lines: Impersonation scams have evolved from cold-calling telemarketing scams to online operations to lure people in.
The intrigue: People of all ages are susceptible to scams — not just the elderly.
- Only 40% of people who fell for tech support scams reported to be over 60, according to the FBI.
- Even New York Magazine’s personal finance columnist fell for a customer support scam where she put $50,000 into a shoebox and handed it to someone in an unmarked vehicle.
In A Nutshell . .
Be on high alert for impostors.
- The government will never call, email, text or send a social media message to ask for money, the FTC says.
- Be wary of anyone who calls randomly with a supposedly urgent financial need — especially if they ask you to buy a gift card or to transfer cryptocurrencies.
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