Press Release

AG Taylor Seeks FTC Rule Against Impersonation Scams

February 23, 2022

(Anchorage, AK) – With millions of Americans targeted each year by imposters who claim to be government officials, love interests or even grandparents, Alaska Attorney General Treg Taylor joined a bipartisan coalition of 49 attorneys general today to urge the Federal Trade Commission to adopt strict regulations prohibiting impersonation scams.

There is not currently an FTC rule specifically related to impersonation scams, although scammers who engage in fraudulent acts are subject to state criminal and civil penalties. The Alaska Department of Law and other state attorneys general receive countless complaints each year about impersonation scams, which can take various forms.

Attorneys general are on the front lines of defense against impersonation scams, since they see first-hand the pervasive problem these acts create for consumers, small businesses, and charities in their states.

“Con artists will do just about anything to separate consumers from their hard-earned money, and that includes lying about who they are and why they’ve contacted you,” Attorney General Taylor said. “Establishment of a federal rule prohibiting these scams will give us another tool to fight these scams and protect the public.”

Impersonation scams take on many forms:

Impersonation of government entities: Fraudsters claim to be from or affiliated with a government agency to persuade victims of the urgency to provide payment to obtain licensing or certificates.

Business impersonation: These are scams in which fraudsters claim to be working directly for an actual business or as a third party endorsed by the business. Common examples include tech scams in which the imposters claim they are contacting the victim on behalf of companies such as Microsoft or Apple to assist with a ransomware or technology issue.

Person-to-person deceptions: Grandparent scams, romance scams and others use personal information to make a connection with victims. Whether claiming a grandchild is in urgent need of money or creating a fake profile to gain the trust of someone on a social media or dating site, these impersonation scams account for thousands of complaints to attorneys general each year.

Though the methods may vary, impersonation scams cause injury to consumers who lose money, drain resources from regulators tasked with protecting the public, and cause confusion and loss of trust in government agencies and services.

“There is a pressing need for FTC rulemaking to address the scourge of impersonation scams impacting consumers across the United States,” the letter states. “A national rule that encompasses and outlaws such commonly experienced scams discussed [in our letter] would assist attorneys general and their partners in reducing consumer harm, maximizing consumer benefits, and holding bad actors to account.”

A robust national standard outlawing impersonation scams should:

• Deter bad actors and reduce consumer harm.
• Provide needed clarity on what conduct constitutes impersonation, since government and business impersonation scams can range from overt pretense to misleading subtlety.
• Deprive bad actors of the excuse that they were allegedly not aware their activities were illegal in some jurisdictions as opposed to others.
• Provide more opportunities for the states to collaborate with the FTC on multistate enforcement actions against imposter scammers.
• Allow states to enforce their own standards, free of any preemption by a federal rule.

The FTC should publish additional consumer and business education materials to help prevent consumers from becoming victims of impersonation fraud. These efforts must serve as a complement to a strong regulation with a robust enforcement scheme, not as an alternative.

“The attorneys general hope to continue working with the FTC and other partners to sound the alarm on impersonation scams,” the letter states.

• NAAG Letter to FTC Re: Trade Regulation Rule on Impersonation of Government and Businesses - PDF (1.13MB)

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Department Media Contacts: Communications Director Patty Sullivan at patty.sullivan@alaska.gov or (907) 269-6368. Information Officer Sam Curtis at sam.curtis@alaska.gov or (907) 269-6269.