· Listen
Your phone shows your bank's name. The caller says your account has been hacked and your money has to move to a safe account today. Every detail is designed to sound like help.
The simple version
An impostor scam works by borrowing trust. The scammer pretends to be someone you already believe: a bank, a government agency, a company, or your own boss. Then they create an emergency that only money can fix. The FTC warns that scammers fake caller ID, give badge or employee numbers, and send official-looking letters, so a familiar name on the screen proves nothing.
How it actually works
The fake bank
The story is that your account is compromised and your money has to move to protect it. The FTC's guidance is direct: do not believe anyone who says you have to quickly move your money to protect it.
The fake IRS
The story is a tax bill that has to be paid today, sometimes with a threat of arrest. The IRS says a letter or notice is the first way it contacts a taxpayer. It says it never demands payment by prepaid card, store card, or online gift card. It does not leave threatening messages about arrest warrants. It does not make first contact by email or social media, and it says it only sends texts with the taxpayer's permission.
The fake boss
The story is an urgent favor from your manager: buy gift cards and send the numbers from the back. The FTC describes this exact pattern and says it plainly: only scammers ask for gift card numbers and the PIN.
The pattern, side by side
| Who they pretend to be | What they ask for | What the real organization says |
|---|---|---|
| Your bank | Move your money to a "safe" account now | FTC: do not believe anyone who says you have to quickly move your money to protect it |
| The IRS | Pay a tax bill today by gift card or prepaid card | IRS: first contact is a letter or notice, and it never asks for gift cards or prepaid cards |
| Your boss | Buy gift cards for an urgent favor | FTC: only scammers ask for gift card numbers and the PIN |
A three-part check, from FTC and IRS guidance
- Do not use the contact details in the message. The FTC advises against clicking links or calling numbers in unexpected messages.
- The FTC advises contacting the organization yourself, using a phone number, website, or email address you know is real.
- Treat a demand for gift cards as a stop sign. The FTC says no real business or government agency will ever tell anyone to buy a gift card to pay them.
The Real Cost lens
Gift cards show up in so many of these scams because the value can be spent as soon as the numbers and PIN are shared. The FTC's guidance for anyone who has already paid this way is to contact the card's issuer right away and keep the card and the store receipt, which support the fraud report.
Common mistakes
- Trusting caller ID. The FTC warns that scammers fake it.
- Calling back the number in the message. It may reach the scammer, not the organization.
- Taking a badge number or an official-looking letter as proof. The FTC lists both as common impostor tactics.
If it already happened
The FTC's first step is to contact whoever moved the money (the bank, the gift card issuer, the wire service) right away and ask for it back, then report the scam at ReportFraud.ftc.gov. The last lesson in this series, The first hour after a scam, walks through each payment method.
Advanced insight
The deadline is the weapon. An emergency with a clock on it stops people from doing the one thing that exposes the scam: contacting the real organization. That is why the FTC's guidance keeps coming back to verification through a number you already know. It takes the clock away.
What this lesson is NOT
This is not a complete list of impostor scams, and not legal advice. It is not a substitute for contacting your own bank, employer, or the IRS through their official channels about a real account or a real tax question.
Related on this site
- Lessons in this series: How investment scams actually work, Payment app scams, Credit freezes decoded, and The first hour after a scam.
- Game: Spot the Scam.
- Glossary: Phishing.
Frequently asked questions
How does the IRS first contact people?
The IRS says a letter or notice is the first way it contacts a taxpayer. It also says it never demands payment by prepaid card, store card, or online gift card.
My caller ID shows my bank's real name. Is the call real?
Not necessarily. The FTC warns that scammers fake caller ID. Its guidance is to contact the bank using a phone number, website, or email address you know is real.
What if my boss really does need gift cards?
The FTC's guidance is to check with your boss using a number or email you know is real, not the one that contacted you. It also notes that only scammers ask for gift card numbers and the PIN.