How to protect yourself from government benefits fraud

Fraudsters often pose as other people to rob government assistance programs. The pandemic relief period triggered a sharp spike in these schemes, but the problem continues.

According to the Federal Trade Commission (FTC), consumers reported more than $12.5 billion in fraud losses in 2024, a 25 percent increase over the prior year. Of that, government-and business-impostor scams alone caused $2.95 billion in direct losses in 2024.

Meanwhile, the U.S. Government Accountability Office (GAO) reported that 16 federal agencies identified roughly $162 billion in improper payments in fiscal year 2024 (payments that were made when they should not have been or were made in incorrect amounts, including but not limited to fraud).

In short: any government-benefit program that pays out funds is a target. And your identity, whether you’re actively participating in the program or not, can be the currency. 

How government benefits fraud happens 

Scammers use the identities and personal information of real people to get benefits. They access this information through various methods, including data breaches, criminal data brokers, the dark web, skimming devices, impersonation, and mailbox theft.

Once they have your information in hand, the scammers either hack into your existing benefit accounts to redirect funds or apply for benefits on your behalf. Commonly targeted programs include: 

• Death benefits 

• Disaster relief assistance 

• Food assistance programs, such as SNAP 

• Health insurance programs, such as Medicare and Medicaid 

• Housing and Urban Development (HUD) assistance 

• Internal Revenue Service (IRS) refunds 

• Social Security benefits, such as retirement and disability benefits  

• Veterans’ benefits 

• Unemployment insurance 

• Welfare benefits 

While the exact breakdown of losses by program is limited, the trends point clearly to impersonation and identity theft as core methods. 

How to detect government benefits fraud

The FTC suggests that everyone regularly monitor their accounts and credit standing to spot anomalies that might indicate fraud. 

• Look for missing bills. If you suddenly stop getting a credit card bill, someone may have changed your billing address and highjacked your account. 

• Study your bills and billing statements. Scan them for charges you never racked up.  

• Stay on top of bank statements. Watch especially for wayward withdrawals. 

• Monitor your credit reports. Keep an eye out for suspicious activity. 

• Stay on top of both your inbox and mailbox. Are you getting correspondence regarding programs you’ve not applied for? 

What to do if you’re a victim of government benefits fraud 

Once you’ve detected a scammer is using your information to steal benefits, you should act quickly. Because government benefits fraud is specialized, so is the reporting.   

• Report the fraud to the relevant agency (you can find an A-to-Z listing of federal agencies here). Visit your state government’s site for localized fraud. 

• Ask the agency what specific steps you need to take within their organization to report — and rectify — the fraud. If you receive benefits that have been compromised, ask what you should do to recoup your loss and reinstate regular payments (sometimes, the FTC notes, you must make an in-person visit to sort out the mess). Document the process, noting your contact names, numbers, sites, email addresses, and the information each gave you.  

• Report the crime to your local police, state attorney general’s office, and U.S. District Attorney's office.  

How to prevent government benefits fraud

The first thing to prevent falling victim to government benefits fraud is to protect your information. The standard security protocols apply, such as:  

• Use strong passwords (like those generated by password manager apps) and change them regularly.  

• Enable multi-factor authentication on important online accounts.  

• Don’t voluntarily share personal information on social media, personal sites, or otherwise.  

• Use a VPN, stay off public Wi-Fi, and don’t share your hotspot. 

• Remove address labels and shipping bills from boxes you leave outside for recycling.  

• Take identifying labels off prescription bottles and boxes before recycling them.  

• Use EBT cards at major stores and grocers. The security surrounding the card readers of national chain stores tends to be sounder (and more closely monitored) than that of smaller, privately owned shops.  

How to spot fake government representatives

Next, never voluntarily give your personal information to a government agent impersonator.

Government impersonators often use fear tactics to extract personal information. Remember, real government agents never threaten or bully those they contact. They don’t say they will deport you, evict you, or otherwise.

They don’t work with cash gift cards or demand personal information in exchange for urgent issues. They don’t ask you to keep conversations and interactions confidential.     

Because government agencies use regular mail for official correspondence, old-fashioned safeties may be needed. Ensure your home mailbox is secure; if it’s not, use a post office box. Shred unneeded government correspondence rather than throw it into the trash.

When it comes to phone calls, texts, and emails, the IRS and other agencies only text and email you if you have opted into these services. If you get a text or email with a link and are unsure of the source or author, go to the agency’s site and call the help number to verify the letter’s authenticity.

Government agencies call only after an account and/or claim has been fully established. Someone calling from an agency out of the blue is likely a scammer.