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

Fake government agents cost victims $917 million in reported losses in 2025, the U.S. Attorney's Office for the Eastern District of Michigan warned last week. The Federal Trade Commission received more than 375,000 reports of people posing as federal agents.

Scammers typically start with an unexpected call about suspicious account activity. They transfer the victim to someone posing as an agent, who insists urgent action is needed. The script uses spoofed caller ID and fake badges. Some invent a suspended Social Security number. Others claim a crime has put the victim's money at risk.

Prosecutors said victims are pressured to move money into accounts scammers falsely claim are safe. Deposits go into crypto ATMs. Others are told to hand over cash or gold to a courier.

The warning came as federal officials joined the Department of Justice, 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.

Victims are pushed toward crypto ATMs or wire transfers. Some pay through a payment app. The method varies. The result does not. The money leaves, and the agent disappears.

Officials urged anyone who receives such a demand to pause, contact someone they trust, and verify directly with the agency. "Never ever will someone from the government demand that you pay with a payment app, cryptocurrency, wire transfer, or gift cards," the announcement said.

The DOJ's record bitcoin forfeiture case has renewed scrutiny of global scam compounds tied to crypto fraud and trafficking, officials said.