Imposter scams led fraud reports to the FTC for fifth straight year in 2025, causing $3.5 billion in losses

For the fifth year in a row, imposter scams ranked as the most reported type of fraud in 2025, according to the Federal Trade Commission's latest data. While 80% of the roughly 1 million who filed an imposter scam report didn't lose money, the other 20% lost a collective $3.5 billion, the FTC's data shows. "There are some consumers who are losing very high-dollar amounts," said Patty Hsue, chief of staff for the FTC's Division of Marketing Practices. "The median loss [of $700] is on the lower side but there is a very small percentage of consumers who are losing high six figures and up," Hsue said. "There are definitely some consumers who have lost over $1 million." Losses driven by scams costing $100,000 or more Total fraud losses reported to the FTC in 2025 reached about $15.9 billion — the highest on record and an increase of roughly 27% from $12.5 billion in 2024. Since 2020, reported losses have increased nearly 430%, according to the FTC. The trend is largely driven by a sharp increase in the number of consumers saying they were scammed out of at least $100,000, which occurs more often among victims age 60 or older, according to the FTC. Scams involving losses of $100,000 or more among that age group accounted for $1.6 billion, or 68%, of their total $2.4 billion in losses reported in 2024, according to the FTC's 2025 annual report to Congress, released in December. "While we get tons and tons of imposter reports from people of all ages … older adults do tend to report more money losses than younger adults," Hsue said. Generally, men and women are equally victimized by scammers, said Amy Nofziger, senior director of victim support for the AARP Fraud Watch Network, a free resource for consumers to learn about scams and report them. However, "most of the time we hear from women more because they are more likely to report their victimization," she said. Additionally, in many cases, a female family member is the person who reports the fraud on behalf of the male, Nofziger said. Meanwhile, artificial intelligence may also make it harder to spot scams. "We used to say to look for spelling errors or poor grammar," Nofziger said. "Now, that's gone out the window. With the tools available to criminals, they can make any text or email sound 100% correct." Bank impersonators lead losses from imposter scams In the imposter scam category, business impersonators got away with $1 billion in 2025, with the highest reported losses attributed to criminals pretending to work for a bank, according to the FTC. Another $920 million stemmed from government impersonators. Those numbers are up from $866 million and $789 million, respectively, in 2024. "We've seen a change in how imposter scams operate these days," Hsue said. "Really it's becoming much more sophisticated than it has been in the past." One of the newer imposter scams is a hybrid of sorts, Hsue said. The real risk with this ... is that consumers really think they are moving their money to protect it.Patty HsueChief of staff for the FTC's Division of Marketing Practices "It starts off as a business imposter scam, usually something along the lines of 'your account has been compromised,'" Hsue said, explaining that it could look like a text, email or call from your bank, Amazon or another well-known brand. When the victim responds, the criminal says they are transferring the person to a government agency like the FTC or FBI. "A fake government agent tells you that you need to move your money in order to protect your account," Hsue said. "The real risk with this ... is that consumers really think they are moving their money to protect it," she said. Because the victim thinks they are protecting their entire account, "they really move all of their funds. You're talking about bank accounts, Roth IRAs, 401(k)s," Hsue said. Red flags to watch out for Most people — 62% — say they have encountered financial fraud in the last three years or know someone who has, according to a new report from the CFP Board of Standards, which sets and enforces standards for certified financial planners. There are red flags that are commonalities among scams, Nofziger said. "Most scams have the same DNA," she said. "They come out of the blue with urgency." Additionally, if the victim is being asked to lie or keep the situation a secret, that should be reason to pause. "No legitimate opportunity will ask you to lie or keep it a secret," Nofziger said. Fraudsters also try to make victims react with emotion. "They'll get you with fear or get you with excitement … 'This is the FBI and you're going to be in trouble if you don't pay me,' or 'Sweet baby, I have $1 million for you so send me prepaid gift cards to win your prize.'" "The biggest red flag of all is that they're asking you to send money or your personal information," Nofziger said. The biggest red flag of all is that they're asking you to send money or your personal information.Amy NofzigerSenior director of victim support for the AARP Fraud Watch Network Also be aware that "caller IDs and emails and all those forms of communication can spoof where it's coming from, so you can't always trust that it's necessarily the entity that you're speaking with," Hsue said. Instead of responding to the communication, reach out independently, she said. If you realize you've been victimized, it's important to report it quickly, Hsue said. "In some circumstances, either the company or law enforcement can try to get your money back," she said. In other cases, it can be difficult to recover money after 24 or 48 hours, she said. If you encounter an imposter scam — or any type of financial fraud — you can report it to the FTC via its website. "Recognize that scams are targeting all of us," Nofziger said. "It has nothing to do with your education or your intelligence level. It really has to do with your emotions at the time the scam is targeting you."