As Congress faces another budget stalemate, consumer watchdogs are warning Illinois residents and the rest of the country to be on guard for scams exploiting fears over the government shutdown.
State attorneys general and federal officials say fraudsters are already seizing on uncertainty to target federal employees, contractors and benefit recipients with false claims about lost paychecks, suspended benefits and emergency relief.
“These scams are designed to prey on people’s anxieties during a shutdown,” Michigan Attorney General Dana Nessel said, cautioning residents to avoid clicking on links or sharing personal information in unsolicited messages.
Here’s what to know.
Officials warn of possible scams during 2025 government shutdown
Authorities say common tactics include phone calls or emails from imposters posing as Social Security, Medicare or food assistance officials. The messages may falsely warn that benefits are on hold unless recipients pay a fee or verify their personal data. Other scams offer “relief programs” or “wage protection services” that require upfront payments through wire transfers, gift cards or cryptocurrency.
Consumer advocates say shutdown periods also provide cover for phishing attempts emails and texts with subject lines such as “Government Shutdown Notice” or “Benefit Suspension.” Clicking those links can expose victims to malware or direct them to fake login pages designed to steal credentials.
While federal operations may slow or scale back, officials emphasize that most benefits including Social Security, Medicare and Supplemental Nutrition Assistance Program payments are not cut off in a shutdown. The government will also not demand money or sensitive information by phone or email.
The Federal Trade Commission has warned that some consumer protection services could be limited during a shutdown, which could embolden scammers. Victims are urged to report fraud to their state attorney general or, when available, through the FTC’s complaint system.
Contributing: Manahil Ahmad, USA TODAY Network. Reach Marina Johnson at Marina.Johnson@courier-journal.com.
This article originally appeared on Journal Star: Government shutdown leads to Social Security, Medicaid scams. What to look out for
Reporting by Marina Johnson and Manahil Ahmad, Peoria Journal Star / Journal Star
USA TODAY Network via Reuters Connect
