As impersonation scams become increasingly sophisticated and costly, the Federal Trade Commission (FTC) has launched a robust new rule and enforcement strategy aimed at stopping fraudsters who mimic trusted government agencies and businesses.
AT A GLANCE
- FTC introduces new rule targeting government and business impersonation.
- Violators face civil penalties up to $53,088 per violation.
- Major actions taken against companies like Click Profit and Superior Servicing LLC.
- Public urged to report scams and stay informed through FTC resources.
- April’s Financial Literacy Month highlights free tools for scam prevention.
FTC toughens fight against impersonation scams
With losses to impersonation scams running into the billions annually, the FTC is escalating its response through the new Government and Business Impersonation Rule. This rule, finalized in April 2025, empowers the FTC to impose steep fines and obtain consumer refunds from individuals or companies found misrepresenting affiliations with federal agencies or reputable businesses.
Announcing the rule’s implementation, FTC Consumer Protection Director Chris Mufarrige stated, “The FTC will not hesitate to enforce the Impersonation Rule against bad actors.” Companies like Click Profit and Superior Servicing LLC have already faced enforcement for falsely implying ties with well-known financial institutions, deceiving thousands of consumers.
Education, empowerment, and reporting
The FTC’s approach isn’t only about enforcement—it’s also about education. Through public campaigns hosted on platforms like consumer.ftc.gov, consumers are being taught how to recognize the telltale signs of a scam. These include urgent messages requesting payment via gift cards, wire transfers, cryptocurrency, or demands for Social Security numbers.
As part of its outreach during Financial Literacy Month, the FTC is emphasizing that it will never ask consumers to move money to “protect” it. “If you do,” warns the FTC, “your bank won’t get it back from the scammer” (FTC).
Victims and suspicious consumers are encouraged to report impersonation attempts to ReportFraud.ftc.gov, helping authorities track and shut down scam operations.
Watch FTC’s video overview of the new impersonation rule.
Scam tactics evolving—so must consumer awareness
The FTC notes a shift in scam tactics: impersonators now use AI-generated voices, spoofed caller IDs, and fraudulent websites that closely mimic government pages. To combat this, the agency is working with telecom companies and domain registrars to block scam communications and remove fraudulent websites.
Additionally, educational features are available to guide users in avoiding imposter scams, including how to verify official contact sources and avoid clicking unexpected links.
Scammers have impersonated Social Security, Medicare, the IRS, and even FTC officials themselves. “Someone says they’re from the government and tells you to ‘protect’ your money by making a deposit at a Bitcoin ATM. Stop. It’s a scam,” the FTC cautions.
Public vigilance remains essential
While the new impersonation rule is a significant regulatory development, it won’t solve the scam epidemic on its own. Public participation—staying alert, reporting suspicious contact, and educating others—is critical to preventing future fraud.
The FTC’s dual strategy of empowering consumers with accurate information and holding fraudsters legally accountable represents a decisive shift in scam prevention policy. With digital deception growing more advanced, the agency’s message remains clear: knowledge and action are your best defenses.
