As Congress faces another budget stalemate, consumer watchdogs are warning Kentuckians and Americans nationwide to watch for scams exploiting shutdown fears.
State attorneys general and federal officials say fraudsters are targeting federal employees, contractors, and benefit recipients with false claims about lost paychecks, suspended benefits, or emergency relief.
“These scams are designed to prey on people’s anxieties during a shutdown,” said Michigan Attorney General Dana Nessel, urging residents not to click on links or share personal information in unsolicited messages.
What to know about shutdown-related scams
Authorities say common tactics include phone calls or emails from imposters claiming to represent Social Security, Medicare, or food assistance programs. These messages may falsely warn that benefits are on hold unless recipients pay a fee or verify personal data. Other scams offer “relief programs” or “wage protection services” requiring upfront payments via wire transfer, gift cards, or cryptocurrency.
Scammers may also use phishing emails or texts with subject lines like “Government Shutdown Notice” or “Benefit Suspension.” Clicking links can install malware or direct victims to fake login pages designed to steal credentials.
Officials stress that most federal benefits, including Social Security, Medicare, and SNAP, are not cut off during a shutdown. The government will not demand money or sensitive information by phone or email.
The Federal Trade Commission noted that some consumer protection services may be limited during a shutdown, potentially emboldening scammers. Victims are urged to report fraud to their state attorney general or via the FTC complaint system when available.
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