One bizarre but incredibly harmful scam going around now involves con artists who shrewdly impersonate someone else to ultimately convince you that you absolutely must transfer your money to protect it.
Yes, people sadly end up moving thousands of dollars — sometimes even six figures — directly into a scammer's pocket. All driven by a long list of lies. We've seen quite a spike in such activity in the past four years, according to regulators.
The Federal Trade Commission's new data shows a more than four-fold increase from 2020 through 2024 in reports from older adults who say they lost $10,000 or more to crooks who impersonate trusted government agencies or businesses to convince consumers to transfer money to protect it.
The reality is that the scammers have found yet another way to steal your money, sometimes your entire life savings.
They're going to ring a false alarm and hope you rush to send your money out the door.
Adults aged 60 and older were more likely to report extraordinarily high losses, many losing more than $100,000 in savings, to such "transfer it to protect it" scams.
Targets for fraud: Scammers play into confusion over tariffs, immigration, drug trafficking
The FTC’s latest Consumer Protection Data Spotlight indicated that combined losses reported by older adults who lost more than $100,000 to these scams skyrocketed from $55 million in 2020 to $445 million in 2024.
The total number of business imposter and government imposter reports filed by older adults with a loss of $10,000 or more reached 8,269 reports in 2024, up from 1,790 in 2020, according to the FTC.
In 2024, the FTC said, 41% of older adults who reported losing $10,000 or more to a business or government imposter scam indicated that fraudsters initially reached out with a phone call. Some 15% indicated the scam started with an online ad or pop-up, and 13% said the scam started with an email.
Some urged to transfer savings to Apple Cash
Make no mistake, younger consumers are becoming victims, too.
An 18-year-old consumer in Michigan lost $4,800 this summer to one of these "transfer it to protect it scams" after receiving an email from someone impersonating his bank.
The initial email involved a supposed fraud alert on his checking account at Flagstar Bank, according to a report made to the Troy Police Department on July 16.
The consumer soon began receiving phone calls from someone who also claimed to be a Flagstar employee who claimed that the customer's account had been hacked.
Those impersonating the bank told the young man that he needed to verify his Social Security number. And, ultimately, he was told that he needed to transfer $4,800 on the spot from his checking account to an Apple Cash account to "protect" his money.
According to the police report, the victim transferred the money but then became suspicious of the call and hung up.
When he checked his accounts, according to the police report, he realized the money had been transferred to two vendors in Pakistan.
In general, con artists put you on edge by alerting you to a fake but supposedly urgent problem. Their goal is to eventually persuade you to transfer your money to “keep it safe."
"In reality, the money is being sent to the scammers," according to the FTC.
The FTC noted that 33% of older adults who reported losing $10,000 or more in 2024 to a business or government imposter scam indicated that they sent the money via cryptocurrency. About 20% were told to use a bank transfer and 16% handed over cash.
And yes, crooks can handle this transfer of money in different ways, such as suggesting putting money in an Apple Cash account.
Apple Cash states online: "Warnings are presented when you attempt to send money via Apple Cash to someone outside your contacts or if the transaction is considered risky. To use Apple Cash safely, pay attention to the warnings."
Another red flag of a scam, according to Apple Cash: "Businesses and government agencies won't request payment via Apple Cash."
Some urged to transfer cash to bitcoin ATM to protect it
In April, I wrote about a woman who lost $17,500 after someone impersonating her credit union convinced her that she would need to transfer her cash into a "security" account to protect her savings from someone who was about to send her money into an account at www.poker.com.
Bottom line: Never give into someone's story that you must move your money to protect it.
Michigan Attorney General Dana Nessel's office has heard from scam victims who were prompted by someone impersonating an authority to transfer their money to protect it from various phony threats, according to Danny Wimmer, Nessel's press secretary.
Often, he said, a caller claims an arrest warrant has been issued for the person, triggering some sort of panic.
Typically, the consumer on the call is transferred to yet another scammer impersonating a government official with an agency such as the Federal Trade Commission, the Office of Inspector General, or the U.S. Marshals Service, Wimmer said.
"These callers have claimed that once an investigation is formally opened the call recipient’s assets will be frozen though they can immediately deposit their funds into a cryptocurrency kiosk and be issued a ‘certified check’ from the government equal to the sum of their funds," Wimmer told the Detroit Free Press, part of the USA TODAY Network.
Sure it sounds complicated but that's how scammers catch you off guard.
Then, the scammer will direct the consumer to a specific cryptocurrency kiosk in their neighborhood, Wimmer said. The scammer tends to stay on the phone with the victim during the deposit process.
Money sent to scammers through crypto ATMs is nearly impossible to recover. Nessel warned in April that bitcoin ATMs lack oversight and regulation, and, as a result, have become "an attractive option for criminals engaged in fraud and money laundering."
Common fake stories and how to avoid being scammed
To avoid such scams, be on alert for some of the typical stories that scammers will tell you.
Someone is using your accounts: The scammers claim to be from your bank or a well-known company like Amazon, according to the FTC, and they start out saying that they have flagged suspicious activity on your account.
Your ID is being used in criminal activity: Scammers often pretend to be a government officer warning that your Social Security number or some other information is being used to commit a crime such as drug smuggling or money laundering, according to the FTC.
Your computer has been hacked: A fake on-screen security alert can pop up on your computer that looks like it’s from Microsoft or Apple. And there's a number to call. "If you call, they say your online accounts have been hacked," according to the FTC.
The FTC noted in its alert that ironically, some scammers even pretend to be with the FTC and tell people to transfer money out of their accounts, deposit cash into bitcoin ATMS, and even hand off stacks of cash or gold to couriers.
The FTC never asks people to do such things.
The best bet is to take the "do not engage" approach to living out your life. If you're concerned, go directly to a statement from your bank or look on your credit card for a number to call to ask about any potential problem.
Hang up on the caller. Don’t trust the phone number or name they provide. Block unwanted calls. You can file a complaint at ReportFraud.ftc.gov.
Contact personal finance columnist Susan Tompor: [email protected]. Follow her on X @tompor.
This article originally appeared on Detroit Free Press: FTC sees surge in losses from 'transfer it to protect it' money scams
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