Imposter scams happen when fraudsters pretend to be someone you trust—a government agent, tech support, or even a family member—to steal your money or personal information. These scams thrive on fear and urgency, convincing people they’re in danger or that a loved one is. Here’s how these cons work, what red flags to watch for, and how to protect yourself from becoming a victim.
Imposter scams are among the most common—and costly—forms of fraud. In 2024 alone, Americans lost nearly $3 billion to these schemes, according to the latest data from the Federal Trade Commission (FTC).
Also known as impersonation scams, these scams prey on human emotions, like fear, urgency, and trust, to pressure you into making snap decisions. The results can be financially and emotionally devastating.
While specific messages and strategies may change, an imposter scammer’s end goal is always the same: to steal your hard-earned money or personal information. But by understanding their playbook, you can stay one step ahead.
How imposter scams work
It starts with a phone call, a text, or an email from someone who sounds official. Maybe it’s the IRS, your bank, or tech support. The message? Something’s wrong, and you need to act fast.
Imposter scams are effective because they exploit a basic human instinct: the drive to respond quickly in a crisis. Scammers know that posing as someone you trust makes it more likely you’ll comply without questioning the request.
And that’s exactly how they gain control. Common imposter scam scenarios include:
Bank impersonation: Scammers may pose as your financial institution, telling you your account has been hacked or frozen to trick you into revealing personal details or sending money.
Employer impersonation: Fraudsters pose as your boss, HR department, or another company leader. They might ask you to buy gift cards, share personal details, or complete an urgent task under the guise of secrecy or a tight deadline.
Family emergency scams: Also called "grandparent scams," these cons involve someone impersonating a loved one in distress, often asking for quick financial help.
Government impersonation: Scammers pretend to be from agencies like the IRS, Social Security Administration, or local law enforcement. They’ll claim you owe fines, face arrest, or must verify personal information.
Tech support fraud: Posing as major companies like Microsoft or Apple, scammers claim your device is compromised and needs immediate "repair"—often for a fee.
In all these scenarios, scammers are hoping you bypass logical safeguards, such as simply hanging up, verifying with a third party, or taking time to think before you act.
Imposter scams by the numbers
In 2024, imposter scams remained the most reported type of fraud to the FTC, with consumers nationwide reporting losses totaling nearly $3 billion.
Notably, that same report noted older adults were disproportionately affected; individuals aged 60 and over were 41 percent more likely to report losing money to government impersonation scams compared to younger adults.
Tech support scams alone resulted in over $924 million in losses in 2023, according to the FBI’s Internet Crime Complaint Center (IC3).
The red flags of an imposter scam
The best defense against imposter scams is knowing what to look for. These frauds tend to follow recognizable patterns, and the warning signs are often right in front of you if you know where to look.
Here are some telltale signs you might be dealing with an imposter scammer:
They demand immediate payment. Legitimate institutions rarely demand immediate action over the phone, especially payments through wire transfers, cryptocurrency, or gift cards.
They create panic or urgency. Fraudsters might say you’ll be arrested within hours, lose access to an account, or put a loved one in danger if you don’t comply quickly.
They refuse to let you verify. If someone tells you not to hang up or contact anyone else, that’s a major red flag. Scammers want you isolated and flustered.
They ask for sensitive information. Real companies will never call, text, or email you out of the blue to ask for your Social Security number, account passwords, or full credit card number.
How to outsmart imposter scams
Falling for a scam doesn’t mean you weren’t smart or careful. These schemes are designed to catch you off guard. The good news is that with a few mindful habits, you can protect yourself and the people you care about.
Slow down and stay skeptical. Pause before acting on any urgent requests. Take a deep breath, step away, and consider whether the situation sounds suspicious.
Verify independently. If a caller claims to be from your bank or a government agency, hang up and call back using a verified number from the official website or your account statement.
Talk it out. Fraudsters often count on secrecy. If something feels off, consult a friend, family member, or trusted advisor before acting.
Know the common scripts. Familiarize yourself with how these scams tend to unfold. The more you recognize their tactics—fear, urgency, secrecy—the easier it becomes to resist.
And if you ever do fall victim, don’t let shame stop you from speaking up. Reporting these scams helps protect others and holds fraudsters accountable.
If you spot an imposter scam, report it to the FTC at ReportFraud.ftc.gov and your local authorities. And if you’re an Allstate Identity Protection member, give us a call—we’re here to help you untangle the mess and get back on track.
