Impersonation Scams: When Fraudsters Pretend to be Government Agencies

Impersonation scams happen when fraudsters pretend to be trusted agencies like the IRS, Federal Trade Commission (FTC), FBI, or local law enforcement. Their goal is simple: scare you into sending money or sharing personal information before you have time to think.

These scams can feel very convincing, but knowing the warning signs can help you pause, verify, and protect yourself.

How These Scams Work

Scammers often reach out by phone, email, text, social media, or via a pop-up on your computer or phone. They may claim there is suspicious activity tied to your Social Security number, bank account, device, or identity and they usually say you must act right away.

They may use fake badge numbers, case numbers, official-sounding titles, spoofed caller ID, or official-looking emails and letters to seem legitimate. Real government agencies will not call you directly, threaten immediate arrest or demand money over the phone. 

How They Try to Get Your Money

Once fraudsters create panic, they often push for payment in ways that are hard to trace or reverse.

• Cash withdrawals or courier pickups at your home or another designated address
• Wire transfers, gift cards, payment apps, cryptocurrency apps (crypto.com, coinbase, uphold) or depositing the cash at a crypto currency ATM
• Cashier's checks made out in your own name. In some cases, fraudsters may tell you to take a cashier's check made payable to yourself to a check-cashing location so they can continue directing what happens to the funds without drawing attention at your financial institution

Fraudsters ask for cashier’s checks because they may appear more official or safer. Be especially cautious if someone tells you to make the check payable to yourself, cash it elsewhere, or follow step-by-step instructions about what to do with the money. Once the funds are handed over, sent, or converted, they are impossible to recover.

Why These Scams Feel So Real

These scams work because fraudsters combine fear, urgency, and authority. They may use real agency names, official-looking language, or personal details like your name or address to sound believable.
Red Flags to Watch For

Be cautious if someone:

• Tells you to keep the situation secret
• Pressures you to act immediately
• Threatens arrest, fines, or legal action
• Asks you to withdraw cash, buy gift cards, use cryptocurrency, or purchase a cashier's check
• Claims your bank of credit union is involved in the "illegal" activity and tells you not to disclose that you are working with an "agent" for your protection
• Warns you not to contact your credit union, family, or a trusted contact

What Real Government Agencies Do and Don’t Do

Real government agencies usually contact you through official mail or documented channels, give you time to respond, and allow you to verify the information.

They will not demand immediate payment, ask you to move money to “protect” it, threaten arrest over the phone, or require payment by gift cards, wire transfer, cryptocurrency, cash, or cashier’s check.

How to Protect Yourself

If something feels off, slow down and verify before taking any action.

• Hang up or stop responding
• Contact the agency directly using a verified phone number or website
• Never send money because of pressure or fear
• Talk to your credit union or someone you trust before withdrawing funds or purchasing a cashier's check

A quick pause can make all the difference.

Final Reminder

Fraudsters count on fear, urgency, and secrecy. If someone says you are under investigation, your money is at risk, or you must act immediately, stop and verify before doing anything else.