An imposter scam is a type of fraud in which a criminal pretends to be someone trustworthy in order to trick a victim into giving away money, personal information, or account access.
Scammers often pretend to be from a government agency, bank, tech support team, or even a family member. This type of fraud is becoming even more prevalent now that AI technology enables bad actors to falsify videos, emails and websites.
Such scams have increased 400% since 2020, according to recent research conducted by BrokerChooser. Even more disheartening: Statistics indicate that older adults are most vulnerable to imposter scams as scammers are especially enticed by retirement funds.
"The first thing to watch for is high-pressure tactics from unsolicited contacts," Adam Nasli, Head Broker Analyst from BrokerChooser, said in a recent press release. "Imposters often demand immediate action, threaten account freezes or insist you transfer funds to 'secure' your assets, hoping to cloud judgment with panic. Always pause and verify the request directly with official channels, and never hand over personal information or make transfers on the spot. Legitimate banks and brokers rarely call you out of the blue for sensitive data, so stay skeptical."
The scammer typically creates a sense of urgency or fear (for example, claiming there is a legal problem, a hacked account, or an emergency) to pressure the victim into acting quickly without verifying the request. These scams can happen through phone calls, emails, texts, or social media messages, and they often use fake caller ID, logos, or names to appear legitimate.
A key warning sign is any request for unusual payment methods like gift cards, wire transfers, or cryptocurrency.
Losses from imposter scams are often not covered by standard homeowners or renters' insurance, because many policies exclude voluntary transfers of money — even if they were made under deception. However, some insurers offer optional identity theft or cyber fraud endorsements that may reimburse certain expenses like credit monitoring, legal fees, or limited financial losses tied to identity theft.
The slideshow above illustrates the U.S. states considered to be imposter scam hotspots, according to research compiled by BrokerChooser.com.
(Featured image credit: yamasan/Adobe Stock)
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