The Federal Trade Commission highlighted actions taken to protect consumers from impersonation scams since the Government and Business Impersonation Rule took effect in April 2024. Scams impersonating businesses and government are consistently among the top frauds reported to the FTC; these scams resulted in $2.95 billion in consumer losses in 2024.

In the first year since the Rule went into effect, the FTC has brought five cases involving alleged violations and shut down 13 websites that were illegally impersonating the Commission online.

“The billions of dollars American consumers lose at the hands of impersonators is staggering,” said Chris Mufarrige, Director of the Bureau of Consumer Protection. “The FTC will not hesitate to enforce the Impersonation Rule against bad actors.”

The Impersonation Rule makes it illegal to:

• materially and falsely pose as a government entity or officer, in or affecting commerce; or materially misrepresent affiliation with a government entity, in or affecting commerce; and
• materially and falsely pose as, directly or by implication, a business or officer thereof, in or affecting commerce; or materially misrepresent, directly or by implication, affiliation with, including endorsement or sponsorship by, a business or officer thereof, in or affecting commerce.

Companies or individuals that violate the Impersonation Rule may be required to pay refunds to affected consumers and civil penalties of up to $53,088 per violation.

Over the past year, the FTC has brought law enforcement actions under the Impersonation Rule against: Click Profit (e-commerce business opportunity scheme); Superior Servicing, LLC (student loan debt relief scheme); Panda Benefit Services, LLC (student loan debt relief scheme); and Blackstone Legal (phantom debt collection).