Older Americans generally have more financial resources than other groups. And because they did not grow up with the internet, they tend to be less computer-savvy than younger generations. This makes them highly desirable targets for cyber-criminals. In this post, we tell you about a growing cyber scam threat, and how to avoid it: the phantom hacker scam.
Although this scam is nothing new, it is making a big comeback now due to the rise of artificial intelligence and the enhanced ability of bad actors to make their communications appear to be from authentic sources. Since 2024, the FBI reports that this type of fraud has bamboozled victims out of $1 billion.
A Three-Phase Scam
The phantom hacker scam is a three-phase operation, with one step building on the next over days, weeks or months, all designed to convince you of its authenticity. Here is how it works:
Step 1: You Are Contacted By A “Cybersecurity Professional”
You receive an unsolicited phone call, pop-up, email or text from someone posing as a technical support specialist or computer security professional. The communication looks like it is from a trustworthy organization. For example, the caller ID may bear the name of a real government entity or a real company you do business with.
The scammer then informs you that your computer or other device has been hacked. The scammer may even send you fake screenshots or alerts designed to convince you that the breach actually occurred. You are then directed to download a program that gives the impostor remote access to your computer.
Once the impostor is logged into your computer remotely, he/she pretends to scan your device for viruses. Then comes the piece de resistance: While still having access to your device, the scammer recommends that you open up your financial accounts online to examine them for unauthorized charges. With this information in the scammer’s sights, he/she selects an account that seems to be the most profitable to target. You are now informed that the fraud department of that financial institution will call you to discuss the issue.
Step 2: Your “Financial Institution” Follows Up
A second impostor now enters the picture, pretending to be a representative of the financial institution associated with the account you were told was breached. You are advised that the account was fraudulently accessed by someone from overseas. To protect the funds, the fake financial institution advises you to transfer the funds into a safe third-party account. You are given instructions on how to do that, using a wire transfer, and told to use cash, cryptocurrency or other untraceable method. Of course, that account is controlled by the fraudsters.
Step 3: You Hear From A “Government Contact”
To further bolster the appearance of legitimacy, a third impostor now enters the picture. This person contacts you and identifies him/herself as a representative of some branch of the federal government, such as the Federal Reserve. You are assured that you are doing the right thing, and you are keeping your funds safe by moving them to an alias account.
How to Keep Yourself Safe
- First and foremost, never, ever give remote computer access to anyone who solicits contact with you. If you think there is a problem with your computer, reach out to a recognized IT source.
- If you are unsure and think maybe it really is your bank reaching out to you, do not provide any information. Call your bank directly to determine if it reached out to you.
- Remember, creating a sense of urgency and panic is right out of the fraudsters’ textbook. If you are told that you must act quickly, that’s a huge red flag.
- If you feel you have been scammed, or someone has attempted to scam you, report it to the FBI Internet Crime Complaint Center or the Federal Trade Commission.
Watch this video from the FBI with information about the phantom hacker scam:
There’s no doubt that modern technology has made our lives more convenient in many ways. But it has also made us more vulnerable to clever fraudsters. Ever more nefarious schemes are always in the works. Watch out for the phantom hacker scam, and warn your loved ones, too!
