Crime Never Sleeps: Fraud During Government Shutdowns and Slow Seasons

In early 2019, the United States government ran out of money for a record 35 days. As politicians argued and agencies went quiet, criminals kept working. The original version of this article observed that it is hard to maintain law and order when the people who do the work are not being paid, and that identity theft, though life-ruining, rarely makes a political agenda. The pattern has repeated whenever government services slow or stop, from shutdowns to disasters to pandemics. This updated guide explains how fraud adapts to disruption and how to keep yourself safe when official channels are slow.

1. Why disruption is an opportunity for criminals

Fraud thrives on confusion and fear. When a major service is interrupted, three conditions appear at once.

Anxiety. People worry about paychecks, tax refunds, benefits, passports or permits.
Information gaps. Official sources are slow, and rumors fill the space.
Reduced oversight. Agencies that handle fraud complaints or consumer questions may operate at reduced capacity.

Scammers do not need new tricks. They adapt familiar scripts to the headline of the day. A message that says “Your refund is delayed due to the shutdown; click here to confirm” sounds plausible because a delay is plausible.

The scale of imposter fraud is large. The Federal Trade Commission recorded more than one million imposter scam reports and about $3.5 billion in related losses in 2025, within total reported consumer fraud losses of about $15.9 billion. Government imposters are one of the main categories.

2. The most common disruption scams

Scam	What the message says	Why it works
Refund or payment delay	Click to confirm your details so a refund can be released	Real delays create real worry
Benefit suspension	Your benefits will stop unless you verify now	Fear of losing income
Fake loan relief	Pre-approved loans or grants for affected workers	Financial stress
Payroll phishing	Your pay system needs a password reset	Targets workers already waiting on pay
Debt collection threats	You owe back taxes; pay immediately or face arrest	Authority and fear
Charity and aid appeals	Donate to help affected families	Compassion
Utility or service cutoff	Your power will be shut off today unless you pay	Urgency

The common features are urgency, a request for personal or payment information and a preferred payment method that is hard to reverse.

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3. How real agencies behave

Knowing what legitimate agencies do and do not do helps you spot a fake quickly.

They do not demand payment by gift cards, wire transfers, cryptocurrency or payment apps.
They do not threaten immediate arrest over the phone for unpaid debts.
They usually contact you first by mail for tax and benefit matters.
They do not ask you to confirm full Social Security numbers or banking credentials in unsolicited emails or texts.
Their websites end in .gov. Federal agency websites such as irs.gov, ssa.gov and consumerfinance.gov are official. Lookalikes with different endings are not.

If you are unsure, type the agency’s address directly into your browser rather than clicking a link, and use contact information from that site.

4. Protecting yourself and your money

Slow down. A delay of an hour never ruins a legitimate process.
Verify independently. Contact the agency through a number or site you find yourself.
Protect credentials. Do not share verification codes, passwords or PINs.
Freeze your credit. It is free and blocks new accounts. See what is a credit freeze.
Monitor accounts during any period of financial stress, since scammers hope you are distracted.
Use official channels to check benefit or refund status, such as your online account at the relevant .gov site.
Report suspicious contact at ReportFraud.ftc.gov.

Our guides to avoiding phone scams and how to deal with online scams provide more scripts and defenses.

5. Guidance for people directly affected

Government employees, contractors and benefit recipients are specifically targeted during disruptions.

Check offers carefully. Genuine relief programs will not ask for upfront fees or your banking login in an unsolicited message.
Talk to your employer or union through verified channels about pay and relief.
Contact lenders directly if you need payment accommodations, using the number on your statement.
Be cautious with social media groups. Scammers join groups for affected workers and post fake links.
Keep records of anything you submit or receive.

If you fall victim, act immediately. Follow steps to take after falling for a scam and report identity theft at IdentityTheft.gov. For guidance on the process, read how to report identity theft.

6. Why public information makes scams more convincing

A caller who says “I’m calling about your account at 123 Main Street” sounds more credible than one who reads from a script. Scammers gather these details from data breaches and from people-search sites that publish your name, address, phone number and relatives. In a disruption, that credibility is more powerful because you expect contact.

Reducing the public details tied to your name does not stop every scam, but it removes ammunition. Read scammers are getting sneakier and get ready: scammers are adapting for more on how they customize attacks, and use the data broker cleanup guide to take down listings.

7. Case study: how a shutdown scam unfolds

Consider a federal contractor waiting on a delayed payment. She receives a text that appears to come from her bank and says a direct deposit from her agency is on hold until she verifies her account. The link leads to a page that looks identical to her bank’s login. She enters her username, password and the one-time code sent by text. Within minutes, the criminal uses the code to log in to her real account, adds a new payee and sends money out. The scam worked because it matched what she was already worried about and used a code she believed she was giving to her bank.

The defenses are simple. A bank never needs you to type a login on a page reached through a text link. A one-time code should only be entered on a site you opened yourself. Alerts on new payees and large transfers stop many thefts. And a short pause to call the bank would have exposed the trick.

8. Getting help from official sources

If you are unsure whether a message is real, official consumer sites are the safest reference. The Federal Trade Commission publishes lists of current scams at consumer.ftc.gov, the Consumer Financial Protection Bureau explains rights around payments and debt at consumerfinance.gov, and the Social Security Administration explains how to spot imposters at ssa.gov. Bookmark them before you need them.

9. Helping neighbors and coworkers

Fraud is easier to resist when people talk about it. If you hear of a scam, share it with the people around you and with your workplace group. Encourage coworkers who are waiting on pay to verify any offer through official channels, and remind them that anyone who asks for gift cards or immediate payment is a fraud. Report every attempt, even if you did not lose money, since reports help investigators see patterns and warn others.

10. Myths about disruption fraud

“Scammers only target people who are careless.” They target anyone who is worried, busy or waiting on money. “If a caller knows my name and address, the call must be legitimate.” Those details are easy to buy or look up. “Reporting does no good.” Reports feed investigations and help agencies warn the public, even when individual losses are not recovered.

11. Three scenarios

Scenario 1: A text says your tax refund is on hold. Do not click. Log in to your account through the official site or app to check status. Report the text to 7726 and ReportFraud.ftc.gov.

Scenario 2: A caller says your benefits will end today unless you pay a fee. Hang up. Real agencies do not require a fee to keep benefits. Call the agency’s published number to confirm.

Scenario 3: A group post offers a loan to affected workers. Verify the lender independently, check for upfront fees and never share banking credentials with a stranger.

12. What to expect: a realistic timeline

Action	Time	Effect
Verify a suspicious message	5 to 10 minutes	Prevents most losses
Credit freezes	About 30 minutes	Immediate protection against new accounts
Report to FTC	10 minutes	Contributes to enforcement
Reducing public listings	Days to 4 weeks	Fewer personalized scams over time

13. Common mistakes

Responding quickly because of fear.
Sending money to “fix” a delayed payment.
Trusting a caller who knows your address.
Assuming that reporting channels are closed and not reporting.
Sharing screenshots of benefit letters or IDs online.

14. How Wiperts helps during uncertain times

When official help is slow, prevention matters more. Wiperts scans more than 100 data brokers and people-search sites for your name, address and phone number, submits removal requests, requests removal of personal results from Google and Bing, blurs your home on maps and monitors 24/7 so relisted data is removed again. Scammers who cannot find details about you have less to work with.

See what a scammer could find.

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15. Key takeaways

Criminals exploit disruption, fear and slow agency response.
Real agencies do not demand gift cards, crypto or instant payment.
Verify through official .gov sites, freeze credit and report imposters.
Reduce public details that make scams sound credible.

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16. Frequently Asked Questions

Why do scams rise during government shutdowns?

Agencies answer fewer calls and people worry about delayed paychecks, refunds and benefits. Scammers use that anxiety and confusion to pose as officials and demand payment or personal information.

How can I tell a real government message from a fake?

Real agencies rarely call or text to demand immediate payment, never ask for gift cards or cryptocurrency and use official .gov websites. When in doubt, hang up and contact the agency through a number or site you find yourself.

What should federal workers watch for?

Workers facing delayed pay are targeted by fake loan offers, bogus relief programs and phishing that mimics payroll or benefit systems. Verify any offer through official channels before sharing information.

Does a shutdown stop identity theft investigations?

Investigations and reporting channels may run slower, but you should still report quickly. Financial institutions and credit bureaus continue to operate, so freezing credit and disputing charges remain available.

How do I report a government imposter?

File a report at ReportFraud.ftc.gov. For internet-enabled losses, also report to the FBI at ic3.gov, and tell the real agency through its official website.

What is the best protection against imposter scams?

Slow down, verify independently and keep personal details out of public listings so scammers cannot sound credible.

Sources

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