FTC: US Citizens Lose $3.5B to Imposter Scams in One Year

US citizens and residents lost more than $3.5 billion to imposter scams in 2025, the Federal Trade Commission told Congress, making it the most frequently reported type of fraud for the sixth consecutive year.

What the FTC Said About $3.5 Billion in Imposter Scam Losses

FTC official Lois Greisman delivered prepared testimony before the Joint Economic Committee on March 25, 2026, laying out the scale of consumer fraud tracked through the agency’s Consumer Sentinel Network. The testimony disclosed that consumers submitted 3 million fraud reports in 2025 and reported $15.9 billion in total losses.

Within that total, imposter scams alone generated over 1 million reports and accounted for more than $3.5 billion in reported losses. The term “US citizens and residents” refers to anyone living in the United States who filed a fraud report with the FTC, regardless of citizenship status.

The imposter scam figure represents a notable increase from the prior year. The FTC’s March 2025 fraud data release reported that imposter scams caused $2.95 billion in reported losses in 2024, meaning the category grew by roughly $550 million year over year.

Investment scams, while less frequently reported than imposter scams, carried the highest dollar losses. The FTC testimony noted that consumers reported over $7.9 billion in losses to investment scams in 2025. As interest in financial products like leveraged Bitcoin ETFs continues to grow, fraudsters have increasingly targeted consumers through fake investment platforms.

The FTC also said it brought 40 law enforcement actions involving fraudulent schemes in fiscal year 2025 and obtained more than $1.8 billion in redress for affected consumers.

How Imposter Scams Work and Why Losses Can Escalate

An imposter scam occurs when a fraudster pretends to be someone the victim trusts, such as a government official, a bank representative, a tech support agent, or even a family member. The goal is to convince the target to hand over money or sensitive personal information under false pretenses.

Common tactics include phone calls claiming to be from the IRS or Social Security Administration, emails impersonating a bank’s fraud department, and messages posing as a known contact in distress. Scammers increasingly use caller ID spoofing, cloned websites, and AI-generated voice or text to make impersonation more convincing.

Losses escalate because these scams exploit urgency and authority. Victims are told they face arrest, account suspension, or financial penalties unless they act immediately. The pressure to comply, combined with the apparent legitimacy of the contact, leads many to transfer large sums before recognizing the deception.

The FTC testimony confirmed that imposter scams have held the top spot as the most frequently reported fraud category since 2020. That consistency suggests the tactics remain effective despite public awareness campaigns. As blockchain security technologies continue to evolve, the identity verification challenge at the heart of imposter scams remains largely unsolved in traditional financial channels.

Payment methods also play a role in how quickly losses mount. Scammers often direct victims toward wire transfers, gift cards, cryptocurrency wallets, or peer-to-peer payment apps, all of which are difficult to reverse once sent. The FTC’s Government and Business Impersonation Rule, which took effect in April 2024, was designed to give the agency stronger tools against these specific deceptive practices.

What Consumers Should Do if Targeted or After Losing Money

The FTC’s consumer protection framework offers several steps for anyone who suspects they are being targeted or has already sent funds to a scammer.

The first step is to stop all contact with the suspected fraudster immediately. Do not send additional payments, share personal data such as Social Security numbers or banking credentials, or follow instructions to download software or grant remote device access.

Consumers who have already lost money should document all communications, including phone numbers, email addresses, usernames, and transaction receipts. Screenshots of messages and records of payment methods used, whether wire transfers, gift cards, or digital currency transfers, can be critical for investigations.

Filing a report with the FTC is the recommended next step. The agency uses Consumer Sentinel Network reports to identify patterns, build enforcement cases, and coordinate with law enforcement partners. Victims should also contact their bank or payment provider to attempt to halt or reverse transactions where possible.

For those who shared personal information, placing a fraud alert or credit freeze with the three major credit bureaus, Equifax, Experian, and TransUnion, can help prevent further damage. The FTC does not guarantee individual recovery of lost funds, but the 40 enforcement actions and $1.8 billion in consumer redress obtained in fiscal year 2025 indicate that reporting contributes to broader accountability.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.