CFTC teams up with FTC, IRS, and others to crack down on government imposter scams targeting crypto victims

Fraudsters are impersonating CFTC inspectors to fleece people who already lost money in crypto scams, and the numbers are staggering.

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Add us on Google by Editorial Team May. 26, 2026

If you’ve already been scammed out of your crypto, congratulations: you’re now a prime target for a second scam. This time, the person on the other end of the line claims to be from the government, and they say they can get your money back. They can’t.

The Commodity Futures Trading Commission issued a consumer warning on May 14, 2025, flagging a surge in government imposter scams where fraudsters pose as staff from the CFTC’s Office of Inspector General. The grift is straightforward and cruel: contact someone who already lost money in an investment fraud, usually involving digital assets, then promise to recover their funds in exchange for upfront fees paid in crypto.

The scale of the problem

Government imposter scams aren’t a niche concern. According to FTC data, these schemes generated over one million complaints in 2025 and caused $3.5 billion in losses. That’s a 20% jump from 2024.

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The FTC has tracked government impersonation as its top fraud category for nine consecutive years. Complaints have nearly doubled on a year-over-year basis.

The people getting hit hardest aren’t naive newcomers. They’re individuals who already lost money in prior investment frauds, particularly in the crypto space. Scammers specifically seek out these victims because they’re desperate to recover losses, making them more susceptible to a well-crafted pitch from someone claiming to be a federal investigator.

How the scam works, and why crypto makes it worse

The mechanics follow a familiar playbook. A victim receives a call, email, or message from someone claiming to represent the CFTC’s inspector general office. The fraudster references the victim’s previous losses, which lends credibility because it suggests they have access to case files. They then explain that recovered funds are available but require a processing fee, typically requested in digital assets.

The CFTC was unambiguous in its warning: the agency does not maintain any cryptocurrency wallets, does not collect fees from consumers, and does not contact victims directly to offer fund recovery services. No legitimate government agency does. If someone asks you to send crypto to a government wallet address, that wallet doesn’t belong to the government.

The multi-agency response

The CFTC isn’t tackling this alone. The agency has launched a joint initiative with the Federal Trade Commission, the IRS, the US Postal Inspection Service, and the Social Security Administration’s Office of Inspector General. The collaboration centers on public education campaigns designed to help consumers identify and avoid imposter scams.

These awareness campaigns launched on social media in early March 2026 and are expected to continue throughout the year.

The core message across all agencies is consistent: verify any communication through official channels before taking action. If someone contacts you claiming to represent a government agency, hang up and call the agency directly using a number from their official website. Not the number the caller gave you.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.