The New York State Attorney General Letitia James issued a warning on Wednesday, September 10, alerting the public to a fraudulent scheme known as the “Phantom Hacker.” This type of scam primarily targets elderly individuals who are approaching or are already in retirement, using a three-step method to ultimately steal funds from the victims’ bank and retirement accounts. Since 2024, these scams have resulted in elderly victims losing over $1 billion.
Letitia James expressed, “These heartless scammers are stealing the retirement savings that people have worked hard for their entire lives. I want to warn all New Yorkers to be vigilant and not be deceived by this seemingly legitimate three-step scam.”
In the first “Technical Support” stage, victims receive calls, text messages, emails, or computer pop-ups instructing them to immediately contact a “customer service number.” Once the victim dials this number, the fraudsters request the download of software to gain remote access to the victim’s computer and encourage them to open their bank accounts, identify the account with the most funds, and falsely claim that bank personnel will follow up.
In the “Financial Institution” stage, another scammer impersonates a bank representative, claiming that the victim’s account has been hacked by foreign cybercriminals and must transfer funds to a “safer account,” such as the Federal Reserve or another U.S. government agency account. Victims are typically asked to transfer funds through wire transfers, cash, or cryptocurrency, sometimes in multiple batches over several days or months. The scammers emphasize the need for secrecy and not to disclose information to others.
The third stage, “Government Agency,” involves a third scammer posing as a government official contacting the victim and even sending forged government documents or letters to dispel any doubts the victim may have.
To prevent such fraudulent crimes, the Attorney General’s Office recommends the following:
– Do not click on links in unfamiliar text messages or emails;
– Do not call the phone numbers provided in pop-ups, text messages, or emails;
– Do not allow strangers to remotely control your computer;
– Never transfer money out of an account based on phone instructions;
– If someone claims issues with your bank account, directly call the official phone number listed on your statement;
– Most importantly, in such situations, immediately hang up the phone and inform trusted family and friends.
Victims or their families can submit complaints through an online form or contact the New York State Attorney General’s Office at 1-800-771-7755 for assistance.