The American tourist handed her phone to the tourist guide who was walking her through the Temple of the Reclining Buddha in Bangkok. “I will often hand someone my phone to take my picture in front of an attraction. I have read it is dangerous,” she admitted, ensnared by the desire for that quick photo. 

 At a Sept. 20th Ethnic Media Services briefing, experts from the FTC Bureau of Consumer Protection warned scams are rising at alarming rates thanks to sophisticated new tactics. Stealing identity and impersonation scams are easier with technology improvements.

The first half of 2024 alone saw 360,000 impersonation scam reports to the FTC, with $1.3 billion in reported losses and a median loss of $800. “This is just the tip of the iceberg,” said Emma Fletcher, senior data researcher at the FTC at a Friday, September 20 Ethnic Media Services briefing about imposter scams. “Behind those numbers are people who’ve lost tens and hundreds of thousands of dollars. We’re really concerned about the volume of reports we’re getting on scams that take it all. People have emptied their bank accounts, even their retirement accounts.”

Less than 5% of scam victims report at all, according to FTC and Better Business Bureau estimates. Over the past few years, reported losses to business and government impersonation scams have skyrocketed nearly fourfold. 

$175 million was lost to government impersonators in 2020 compared to $618 million in 2023, and $195 million was lost to business impersonators in 2020 compared to $751 million in 2023.
“This tremendous increase in reports from people who’ve lost enormous sums of money is tied to very concerning changes in the tactics these scammers are using,” said Fletcher. 

Impersonating as trusted entities 

These scams often involve bank transfer methods like Zelle, or cryptocurrency payment methods like Bitcoin ATMs, which are referred to by many scammers as “federal safety lockers.”
“There have been congressional hearings about Zelle and the role of financial institutions when fraud occurs,” said Kati Daffan, assistant director of the FTC Division of Marketing Practices. “It’s an open question right now. We encourage people to report it to us and their bank. If they’re unhappy with how their bank handles it, they can also file a report with the Consumer Financial Protection Bureau.”

Pretending to represent or be endorsed by a government or business is explicitly a violation, as per a new FTC Impersonation Rule in effect since April. FTC can now file federal court cases seeking to return money to victims and enact civil penalties against scammers.

“In our first case using the new rule, somebody pretending to be affiliated with the U.S. Department of Education would tell people: ‘This is a time sensitive notice, and you can get tax-free loan forgiveness,’ to entice consumers to call them,” said Daffan.

“Then the telemarketers, claiming to be affiliated with the government, would convince people to sign up for a debt relief program and collect hundreds of dollars in illegal upfront fees,” she continued. “Our case is ongoing.”

Daffan added that telltale signs of a scammer include urging the victim to act immediately; asking them to lie to someone, like a bank teller or broker; threatening them with arrest or deportation; and telling them not to hang up before money is withdrawn or transferred.

Also trending are “tag-team” scams blurring the line between business and government impersonation.

“These scams typically start out impersonating a business; say, your bank saying there’s suspicious charges on your account,” said Fletcher. “But when you respond, the situation escalates rapidly. Your accounts are at risk, so they connect you with a government agency. The aim is to create a sense of heightened alarm, to make it difficult to think clearly, recognize the scam, and hang up the phone.”

Furthermore, many scams now involve victims who believe they’re protecting their money from entities who want it.

“If you believe you’re paying someone, you’re going to be cautious about giving all you have. But if you believe you’re protecting your money, you’re more likely to empty your account, and these scammers will position themselves as someone informing you of this problem and helping you resolve it,” Fletcher continued. “They’re not necessarily posing as the aggressor anymore.”
There are many misconceptions about who’s impacted by scams,” she added. “They’re not, say, less intelligent or greedy. It’s really important to put those ideas to rest, because they’re barriers to people being receptive to messages about how to avoid scams … It’s people of all ages, people you know in your community.”

Bluesnarfing uses the Phone bluetooth connection to scam

Scammers exploit vulnerabilities in a phone to steal information. Bluesnarfing, for instance, does this through your phone's bluetooth connection. It’s easier for hackers to exploit vulnerabilities in your Bluetooth if it’s on all the time. This is increasingly common, especially with the popularity of Bluetooth headphones. 

If your phone battery is running low at an airport or another public place, those USB charging ports can look tempting. But be wary: The ports can be infected with malware that exposes your information to crooks. The same holds true for charging cables—so only use ones that come from trusted sources.

Armed with just your phone number and some basic personal info, a crook assumes your identity, says their phone was lost and asks the cellphone carrier to associate a new SIM card with your phone number. This makes your number active on their phone, allowing them to reset passwords and shut you out of your email and social media accounts. Even scarier, this crime makes two-factor authentication useless. 

As the tourist walked through the temple, phone in hand, she overheard a guide ask another tourist for their email or WhatsApp number. She cursed her momentary loss of good sense and pocketed the lethal weapon, her phone. 

Those experiencing fraud can report it and find next steps at reportfraud.ftc.gov.