FBI warns ‘Phantom Hacker’ scam targets seniors

Imposter scams are particularly dangerous because the victim may believe they are dealing with their bank or a well-known organization. But the FBI has warned of an operation where a team of scammers impersonate multiple entities.

It’s known as the “Phantom Hacker” scam and it starts off as a tech support scheme.

According to the FBI, from January to June 2023, more than 19,000 tech support scam complaints were filed with the Internet Crime Complaint Center (IC3), amounting to over $542 million in reported losses. 

Nearly half of the victims were over 60 years old, and this demographic accounted for two-thirds of the financial losses. In the first half of 2023, losses from these scams surpassed 2022’s totals by 40%.

How it works

The scam unfolds in three coordinated phases, each escalating the victim’s fear and deepening their trust in the fraudsters.

Phase 1: Tech support imposter

It begins when a scammer poses as a customer support representative from a reputable tech company. The contact may come via a pop-up on a computer, a text, email, or a direct phone call. 

Victims are tricked into calling a fake help number and downloading software that gives the scammer remote access to their computer. Under the pretense of running a virus scan, the scammer convinces the victim that their device is compromised. They then urge the victim to open financial accounts so they can “check for unauthorized activity,” silently identifying which accounts are most lucrative to target.

Phase 2: Financial institution imposter

A new scammer, now impersonating a representative from the victim’s financial institution, contacts the victim. They claim that both the victim’s computer and accounts are under attack by foreign hackers. 

The victim is instructed to transfer their money into a “safe” third-party account—often said to be with the Federal Reserve or another government entity. In reality, the funds are directed to criminal-controlled overseas accounts. 

Victims may be urged to make repeated transfers over weeks or months while being told not to disclose the true reason to anyone.

Phase 3: U.S. Government imposter

To seal the deception, the victim may be contacted by someone claiming to represent the federal government. This scammer might send what appears to be an official-looking email or letterhead to add legitimacy. 

The pressure to “protect” their funds continues until the victim has emptied retirement, investment, or savings accounts into the scammer’s control.

How to protect yourself

The FBI emphasizes that government agencies will never request money transfers via cryptocurrency, wire services, or gift cards. To stay safe:

• Avoid clicking on pop-ups or unsolicited messages and emails.
• Never call the number provided in pop-ups or suspicious messages.
• Don’t download any software at the request of an unknown individual.
• Never allow someone remote access to your computer unless you initiated the support request.