Government impersonation scams that demand crypto: fake IRS, HMRC, police and FBI calls

The phone rings. A serious voice says they’re from the IRS, HMRC, the police or the FBI. There’s a problem: unpaid taxes, a warrant for your arrest, or your identity linked to a crime. You can sort it out today, they say, but you have to pay now, and the only accepted method is crypto, often through a bitcoin ATM.

No real government agency works this way. This guide explains how government impersonation scams use crypto, how big the problem is, what real agencies say they will never do and what to do if you get one of these calls.

How the scam works

The FTC lists the kinds of things government impersonators say:

• your Social Security benefits will end or your number will be suspended;
• you’ll be arrested if you don’t pay;
• you owe taxes you must pay immediately;
• there’s a warrant out for your arrest;
• you need to pay a penalty for missing jury duty.

Then comes the payment demand. The FTC says impersonators ask you to wire money, buy gift cards, send cryptocurrency or use a payment app. Crypto appeals to scammers because, once sent, it’s very hard to get back, which is why the FTC says only scammers demand it.

A common twist is the “protect your money” story: you’re told your bank account is compromised and you must move your savings somewhere “safe”, such as crypto or a crypto ATM, while the “investigation” continues. The FTC says it will never tell you to transfer your money to protect it. See bitcoin ATMs: risks and scams.

The “Phantom Hacker”: a three-act version

The FBI has warned about a layered version it calls the “Phantom Hacker” scam, which often targets older people:

1. The tech support impostor. Someone posing as technical support gets the victim to install software that gives remote access to the computer, claims it has been hacked, and looks through the victim’s financial accounts.
2. The bank impostor. A second caller, posing as the victim’s bank or brokerage, says a foreign hacker has accessed the accounts and tells the victim to move money by wire transfer, cash or cryptocurrency to a supposedly safe government account, and to keep it secret.
3. The government impostor. A third person, claiming to be from the Federal Reserve or another agency, may send an email or letter on what looks like official letterhead to convince the victim the money is still at risk.

The FBI’s advice: don’t click unsolicited pop-ups or links, don’t download software at a stranger’s request, and remember that the US government will never ask you to send money by wire transfer. See crypto account hacked?

How big the problem is

The FBI’s Internet Crime Complaint Center (IC3) reported in its 2025 annual report:

In 2025, complaints involving government impersonation with a cryptocurrency link numbered 5,955, with $281.1 million in losses. People aged 60 and over filed 8,628 government impersonation complaints, reporting $413.2 million in losses.

The FTC’s figures: big losses, often in crypto

The FTC’s August 2025 analysis of reports from people aged 60 and over who lost money to business and government impersonators found:

• Reports of losses of $10,000 or more rose more than fourfold, from 1,790 in 2020 to 8,269 in 2024.
• Combined losses reported by older adults who lost more than $100,000 rose eightfold, from $55 million in 2020 to $445 million in 2024.
• Among older adults who lost $10,000 or more in 2024, cryptocurrency was the payment method in 33% of reports, more than any other, with bitcoin ATMs mentioned most often. Bank transfers accounted for 20%, cash for 16%, and gold appeared in about 5%.

The FTC identified three false stories behind most of these losses: “someone is using your accounts”, “your information is being used to commit crimes” and “there’s a security problem with your computer”. Each ends the same way: the victim is told that the only way out is to move money, to protect it or to clear their name.

The FBI also notes that tech support and government impersonation fraud often comes from illegal call centers: together, these two categories produced more than 80,000 complaints and over $2.9 billion in losses in 2025.

What real agencies say they will never do

United States (FTC):

• Government agencies will never call, email, text or message you on social media to ask for money or personal information.
• The FTC will never threaten you, say you must transfer your money to “protect it”, or tell you to withdraw cash or buy gold.
• The IRS will never email, text or message you on social media with threats.
• The real Social Security Administration won’t threaten you or suspend your Social Security number.
• More broadly, the FTC says only scammers demand payment in cryptocurrency.

United Kingdom (HMRC):

• HMRC will never leave a voicemail threatening legal action or threaten arrest.
• HMRC will never use social media to offer a tax rebate or ask for personal or financial information.
• HMRC will never ask you to pay with gift or payment vouchers.

Canada: the Canadian Anti-Fraud Centre says no government agency will ever request payment in cryptocurrency.

Red flags

• Threats of arrest, prosecution or losing your benefits.
• Urgency: you must pay today, or stay on the line while you do it.
• Secrecy: don’t tell your family, your bank or anyone else.
• Unusual payment: crypto, a crypto ATM, gift cards, wire transfers or cash couriers.
• A QR code or wallet address sent to your phone for you to pay into.

What to do

1. Hang up or don’t reply. You don’t need to argue.
2. Contact the agency yourself, using contact details from its official website, not the number that called you or a link they sent.
3. Talk to someone you trust before sending any money.
4. Never pay through a crypto ATM, a wallet address or gift cards because someone told you to.

How to report it

• US: the FTC at ReportFraud.ftc.gov, or your state attorney general, and the FBI at ic3.gov. Tell the exchange or ATM operator you used.
• UK: forward suspicious emails to report@phishing.gov.uk and texts to 7726. For HMRC-related scams, HMRC asks you to send suspicious texts to 60599 or email phishing@hmrc.gov.uk. If you’ve lost money, report it to Report Fraud (England and Wales) or Police Scotland.
• Canada: the Canadian Anti-Fraud Centre and your local police.

See crypto scams and where to report them for more detail, and be wary of follow-up calls from people offering to recover your money: see crypto recovery scams.

Protecting older relatives

Older adults are frequent targets. Agree with relatives that no legitimate caller will ever ask them to pay in crypto, and that they should call you before moving any money. See crypto scams targeting older adults.