$917 Million Lost: Fake Government Agents Are Steering Victims Toward Crypto Traps

Federal prosecutors are warning that fake government agents are pressuring victims into crypto ATMs, wire transfers, and cash handoffs. Reported losses reached $917 million, with scammers using spoofed calls, fake badges, and urgent threats to make people believe their money is at risk.

Key Takeaways:

• • Scammers impersonate officials and push victims toward crypto ATMs, wire transfers, or couriers.
• • Reported losses reached $917 million as fake agents used fear, urgency, and official-looking documents.
• • Officials urge people to pause, verify demands, and contact trusted sources before paying.

Fake Federal Agents Turn Urgent Calls Into Financial Traps

Government imposter scams cost victims $917 million in reported losses in 2025, the U.S. Attorney’s Office for the Eastern District of Michigan warned in an announcement last week. The Federal Trade Commission (FTC) received more than 375,000 reports involving people posing as government agents.

Scammers often begin with an unexpected call claiming suspicious activity on an account. The caller may then transfer the victim to someone posing as a federal agent, who insists urgent action is needed to protect their money.

U.S. Attorney’s Office stated that scammers may ask victims to move money into accounts they falsely claim are safe, deposit funds into crypto ATMs, or hand over cash or gold to couriers. The announcement stressed:

“It’s all a lie. No one from the government will ever ask you to do these things. Only scammers will.”

Fraudsters build the illusion carefully, using fake caller ID, official-looking letters, employee IDs, or badges. Some invent a suspended Social Security number, while others dangle government benefits or claim a crime has placed the victim’s money at risk.

Victims may be pushed toward a crypto ATM, a wire transfer, a payment app, cash, gold, or a courier waiting to collect the funds. The script changes, but the ending stays the same: the money leaves, and the government agent vanishes.

The Never EVER Campaign Targets Fear-Driven Payment Demands

The warning came as federal officials joined the Department of Justice (DOJ), the Elder Fraud Coordinating Council, and other agencies in recognizing World Elder Abuse Awareness Day.

This year’s Elder Justice Coordinating Council campaign, titled Never EVER, focuses on stopping the panic before scammers control the next move. Officials urged people to pause, contact someone they trust, and verify any demand involving money or personal information.

U.S. Attorney’s Office cautioned:

“Never ever will someone from the government demand that you pay with a payment app, cryptocurrency, wire transfer, or gift cards.”