According to the Federal Trade Commission, more than 6,000 government imposter fraud cases were reported in Iowa and Minnesota during the first three quarters of 2025, resulting in nearly $11.5 million in losses. Knowing the warning signs of a government imposter scam is the first step in protecting yourself.

The first four blogs in the elderly financial exploitation fraud spotlight series addressed the “grandparent” scam, the lottery and sweepstakes scam, the romance scam, and the tech support scam. Now, let’s look at the government imposter scam.

What is the Government Imposter Scam?

You receive a call from someone claiming to be from the Internal Revenue Service (IRS). After giving you his name and position, he tells you that you owe taxes, threatening jail time if you do not pay immediately. He demands the payment to be made via wire transfer, gift cards, cryptocurrency, or a payment app.

This situation is filled with warning signs that indicate you should not comply with the request. Here are common warning signs to watch out for:

• Threats of jail time or legal action
• Pressure to act immediately
• Unsolicited contact via phone call, text, or email
• Demands for payment via wire transfer, gift cards, cryptocurrency, or payment apps

How Do Criminals Commit Government Imposter Scams?

When committing the government imposter scam, criminals pretend to be government agents from a variety of organizations including, but not limited to, the following:

• Internal Revenue Service (IRS)
• Social Security Administration (SSA)
• Federal Trade Commission (FTC)
• Department of Health and Human Services (DHH)/Centers for Medicare and Medicaid Services (CMS)

By leveraging the credibility of a government agency and applying fear tactics and a sense urgency, scammers hope to urge you to make the rash decision to send them money or provide them with personal information.

The scammer may have already acquired some of your personal information to convince you that the situation is real. Regardless of the information they are able to supply about yourself, do not immediately trust this situation.

How to Avoid Losing Money in a Government Imposter Scam

1. How were you contacted? Unless you initiate the contact, government agencies typically communicate initially by letter. Scammers will unexpectedly contact you by text messages, fake official-looking emails, or spoofed caller ID phone calls.
2. What is being communicated? If you are asked to respond immediately to the communication to avoid penalties or to take advantage of a promised benefit, you should hesitate and evaluate the message. An IRS government imposter may threaten legal ramifications for overdue tax returns, or a Social Security government imposter may promise to increase your benefits. In both cases, take time to process the message’s legitimacy.
3. End the communication. If you receive a call, text, or email that seems suspicious, do not be afraid to end the communication. It is not rude to err on the side of caution. Being overly cautious is better than losing money to a scam.

Reporting Elderly Financial Fraud

If you believe you or someone you know has fallen victim to elder fraud, contact your local law enforcement or branch of the National Adult Protective Services Association. You may also file a report with the FBI. If you have given out account information or personal financial information, contact your banker immediately.

One way these criminals continue to find success in these schemes is by the lack of reporting. While it may feel embarrassing to admit that you have been scammed, reporting the fraud may help track down the criminal or make others more aware of the fraud tactics.