Scams impersonating businesses and government officials cost Americans $2.95 billion last year, according to the Federal Trade Commission.
The losses come despite the fact that a 'Government and Business Impersonation Rule' came into effect last April to help tackle the problem.
The rule makes it illegal to "materially and falsely pose" as a government or business entity or officer. Firms or people who do face penalties of up to $53,088 and being made to refund victims.
The FTC has brought law enforcement actions against five firms so far, including two student loan debt relief schemes and a phantom debt collection outfit. It has also taken down 13 websites impersonating it.
“The billions of dollars American consumers lose at the hands of impersonators is staggering,” says Chris Mufarrige, director, Bureau of Consumer Protection. “The FTC will not hesitate to enforce the Impersonation Rule against bad actors.”