Imposter scams remained the most frequently reported fraud category in the United States for the fifth consecutive year in 2025, with victims reporting losses of $3.5 billion, or over ₹30,000 crore, according to data released by the U.S. Federal Trade Commission. The agency received nearly one million reports linked to such scams during the year.
Business and Government Impersonation Drive Losses
According to the FTC, around 80 percent of those who reported imposter scams did not suffer any financial loss. However, the remaining 20 percent collectively lost billions of dollars, reflecting the growing financial impact of such frauds.
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Overall fraud losses reported to the FTC reached a record $15.9 billion, approximately ₹1.36 lakh crore, in 2025. This marked an increase of about 27 percent from the $12.5 billion reported in 2024. Since 2020, reported fraud losses have risen by nearly 430 percent.
Business impersonation scams caused the largest share of losses within the imposter fraud category, with criminals stealing around $1 billion in 2025. Among these, fraudsters posing as bank representatives caused the highest reported financial damage. Government impersonation scams ranked second, with losses of about $920 million.
Fraudsters Use Fear and Fake Authority
Authorities said criminals often impersonate banks, technology companies, government agencies and law enforcement organisations to convince victims that their accounts, investments or identities are under immediate threat. Victims are then told to transfer money to so-called safe accounts, which are controlled by fraudsters.
The FTC said such scams have become more sophisticated, with many operations combining multiple impersonation tactics. A victim may first receive a fraudulent call, text message or email appearing to come from a bank or well-known company.
Once the victim responds, the call may be transferred to another person claiming to represent a government agency such as the FBI or the FTC. The victim is then falsely instructed to move funds for protection. Investigators said some victims transfer savings, retirement funds, investment portfolios and other long-term assets under this pressure.
Senior Citizens Among Worst Hit
The FTC also noted a sharp rise in fraud cases involving losses of $100,000 or more, particularly among people aged 60 and above. Older adults continued to report some of the highest financial losses, as fraudsters exploited fear, trust and authority to force quick financial decisions.
Experts have warned that artificial intelligence is making scams harder to detect. AI-generated emails, messages and voice communications can appear professional and may lack the spelling or grammar mistakes that earlier helped people identify fraud.
Cyber crime expert and former IPS officer Professor Triveni Singh said modern financial frauds rely more on social engineering than technical hacking. He advised citizens not to transfer money or share confidential financial information solely on the basis of calls, emails or video calls claiming to be from banks, police or government agencies.
The FTC has urged consumers to remain cautious of unsolicited communications demanding urgent financial action, especially those asking for secrecy. It has also advised immediate reporting of suspected fraud, noting that early reporting can improve the chances of recovering stolen funds.
