How Scammers Are Taking Advantage of the Government Shutdown

Scammers never miss an opportunity to prey on people’s fear and confusion—and now they’re taking advantage of the ongoing federal government shutdown to steal money and information from vulnerable individuals.

As Axios notes , October saw an increase in reports of scams involving imposters posing as government employees or agency representatives, amid the loss of federal services and benefits. Last month, the Better Business Bureau’s (BBB) ​​fraud tracking system received 211 such complaints. Fraudsters are also exploiting the stress of quarantine to lure people into investment schemes and other malicious activities (including those using artificial intelligence).

Common Government Shutdown Scams

One common scam aimed at disconnecting services involves impersonating a government representative . Fraudsters may call, text, or email impersonating a federal agency, such as the Internal Revenue Service (IRS) or the Social Security Administration (SAS), whose programs or benefits you use. They will ask you to verify personal information or pay a fee to avoid losing benefits or interrupting service. In some cases, they may even threaten fines or legal action if you don’t comply. This is a common scam that preys on people’s desire to act quickly and out of fear.

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Other scammers may pose as service providers helping you access specific government programs (such as passport renewals) or offering grants or financial assistance. Axios cites one such case in which a person received a call about a “$5,000 check.” There are numerous reports of scammers offering emergency food assistance to SNAP recipients. Residents of areas with federal agencies or military bases may be targeted .

In such cases, attackers may attempt to collect sensitive information that they can use to steal your personal data. Fraudulent emails and text messages offering “ransom” or “claim” offers also provide phishing links that can lead to fake government websites designed to harvest your login credentials or other data.

AI is facilitating many of these schemes: Nevada’s deputy secretary of securities issued a warning this week about scammers using AI to impersonate government officials, law enforcement officers, and financial professionals, and to create fake versions of trusted individuals known to potential victims, increasing the likelihood that victims will send money or provide access to their information.

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Protect yourself from account closure scams

Always be wary of common scams, such as any unsolicited messages that sound too good to be true or evoke strong emotions (such as fear). Be aware that scammers often act when people are vulnerable, hoping you’ll act rather than think.

If you receive a call, message, or email from someone pressuring you, it’s likely a scam. Never click links from unverified sources, and always verify that the person on the other end of the line is who they say they are by contacting the organization through its official website or social media. You should also check urgent messages from family or friends, no matter how personal they seem, especially if they ask you to transfer money.

Government employees won’t call you to demand money or personal information, and many are currently on unpaid leave because most federal agencies are closed. (Unfortunately, this includes the Federal Trade Commission, so consumers are currently unable to report scams or join the Do Not Call registry.)

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