If you've ever received a text message warning that your bank account has been compromised, or a phone call from someone claiming to be from the IRS, you know just how alarming that can be. And according to new research from the US Federal Trade Commission (FTC), an awful lot of people are not just alarmed by these messages - they are being scammed by them.

The FTC has revealed that US $3.5 billion was lost to imposter scams by American citizens during 2025 - nearly three times as much as in 2020. And don't think that it is because people have become more gullible. The truth is that scammers have are more sophisticated, more brazen, and more targeted in their attacks.

Almost one in three of all fraud reports filed with the FTC last year were imposter scams, making it the most-reported fraud category.

The scams, which can arrive through all channels imaginable - including SMS text message, phone, email, social media, and search engine results - see a fraudster pretending to be someone they are not.

And the most lucrative type of imposter fraud is bank impersonation, with victims reporting that they have lost nearly US $1 Billion to scammers posing as representatives of financial institutions.

In an all-too-familiar attack, a target receives an urgent security alert claiming that there has been suspicious activity on an account, and a seemingly helpful bank representative guides the victim through the process of moving their money somewhere "safe".

The only limit on how much victims loses, the FTC depressingly notes, is how much money they have available for stealing.

Government impersonators were reported to not be far behind, with reported losses of around US $920 Million.

In the past we have warned about a particularly nasty three-phase attack known as the "Phantom Hacker" scam, in which fraudsters first pose as tech support staff, then as bank representatives, and finally as government officials. Each layer of the scam gives more credibility to the previous one, making it harder for victims to spot if they are being deceived.

Even government agencies are not immune to having their names abused by scammers. The US Cybersecurity and Infrastructure Security Agency (CISA) has previously warned that scammers were cold-calling people while claiming to be CISA employees.

Criminals have even been found [using publicly available planning records to impersonate city officials, sending fake invoices to homeowners and contractors applying for planning permits.

Of course, the latest dramatic statistics released only capture what victims have actually reported. It is well documented that those who have suffered at the hands of fraudsters may be reluctant to come forward - often due to embarrassment, or a simple lack of awareness that reporting is an even an option to them.

As such, the true scale of the problem is quite likely to be much worse.

The FTC's Impersonation Rule, finalized in 2024, gives the agency stronger tools to pursue scammers in federal court and seek compensation for victims. Since then, it has managed to claw back over US $70 million in redress. That, while welcomed, is unfortunately just a drop in the ocean compared to what is being lost on an annual basis.

If you or someone you know encounters a suspicious contact, report it to the FTC at reportfraud.ftc.gov. And if someone claiming to be from your bank contacts you out of the blue asking you to move your money for safekeeping? Hang up, and call the number on the back of your card.

Editor’s Note: The opinions expressed in this and other guest author articles are solely those of the contributor and do not necessarily reflect those of Fortra.