Government imposter scams surge amid shutdown
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Reports of scams impersonating government agencies to the Better Business Bureau increased in October during the government shutdown, according to an Axios analysis.
The big picture: Government agencies, local banks and consumer advocates have been warning all month about scammers using confusion around the month-long shutdown to their advantage.
- Experts have been bracing for scammers to try to take advantage of vulnerable people during the shutdown — for example, to target SNAP recipients worried about losing those benefits.
By the numbers: The Better Business Bureau received 211 total complaints about scammers impersonating government agencies in October, according to the bureau's Scam Tracker database.
- That's up from the 151 total government imposter complaints the agency got in September, and 133 reported in August.
- In July, the organization received 233 reports of government scams.
- So far, the Better Business Bureau has seen a 40-50% increase in overall scam reports this year, spokesperson Melanie McGoven told Axios.
Zoom in: Complaints to the organization varied from scammers impersonating passport renewal services to others claiming to be offering government-backed loans.
- One person in Washington state said a scammer "called to tell me my government-free grant for gas, rent and personal expense for 22,000 dollars was at risk if I didn't pay the 500 dollar refundable fee."
- Another person reported receiving a phone call about a "relief check" worth more than $5,000 that had been issued to them.
Reality check: Only a fraction of scam victims submit reports to the Better Business Bureau.
- While most of the reports this month were unrelated to the government shutdown, scammers often take advantage during periods of confusion and high stress around government services.
- McGovern warned that many scams have become so sophisticated that their websites can end up at the top of search results — leading more people to click on them and assume they're legitimate.
What they're saying: "While we haven't heard any specific scams tied directly to the government shutdown yet, we can safely predict that criminals are adjusting their scripts to take advantage of it," Amy Nofziger, AARP's senior director of victim support, told Axios.
- "If you get a call or text out of the blue from someone claiming to be with a government agency, say 'Thank you for your call,' hang up, and talk to a friend or advocate for guidance," she added.
What to watch: Scammers are already starting to target SNAP recipients ahead of this weekend's funding freeze.
Go deeper: How the SNAP freeze will squeeze Walmart and grocery stores
