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Cybersecurity experts warn that scams that have been used to save lives or drain an entire retirement account have become “devastating” for older people.
On July 15th, FBI Los Angeles posted a reminder to X about the Phantom Hacker Scam. This has cost Americans over $1 billion since at least 2024. The FBI said the fraud targets older people and warns that victims could lose “life savings.”
Scams work in three stages: “technical support fraudsters,” “financial institution fraudsters,” and “US government fraudsters.”
In the first phase, the technical support scammer will contact the victim via text, phone or email, then instruct them to download a program that allows the scammer to remotely access the computer. The fraudster then asks the victim to open a financial account and “determine if there were any fraudulent accusations,” which the FBI states “in the target's most favorable.” The scammer then selects an account for the target and tells the victim that he will be asked for further instructions from the “fraud department” of the bank that hosts the account.
How scammers use their data for “pre-approved” retirement scams
The FBI warns Americans about scams targeting seniors. (Getty Images)
In the second phase, financial institution fraudsters must call the victims, notify them that their funds have been “accessed by foreign hackers” and be moved to a “secure” third party account. The victim is then instructed to send money via wire transfers, cash or cryptocurrency, and told to send “multiple transactions over days or months.”
In the third phase of fraud, victims can contact people who pretend to be US government officials. US government employees urge individuals to move funds to “aliased” accounts for protection.
Social Security Agency phishing scams target retirees
Pete Nicoletti said the family should discuss the Phantom Hacker Scam with their loved ones. (Getty Images/Adam Kazu)
Checkpoint's Chief Information Security Officer Pete Nicoletti told Fox News Digital that the scam has become “devastating” for older people, and that families need to talk to their loved ones to protect them. Nicoletti said the con artists are now becoming personal to some of their tactics and are targeting people with the specific interests they have.
Checkpoint's chief information security officer Pete Nicoletti said families should discuss ways to protect seniors from fraud. (istock)
“Families should have dinner discussions about this,” Nicoletti said. “But you know, seniors post things on Facebook like Corvette Collectors. Criminals are actually using artificial intelligence to look for such types of traits and profiles. Collectors.
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Over $1 billion has been obtained from seniors as a result of the Phantom Hacker Scam. (istock)
Nicoletti said the victims rarely get their money back, even after they reported it stolen by authorities.
“It's devastating,” he said. “if [victims report their funds stolen] On the same day, there's a chance. I think it's in a single digit percentage. It's 10, 15%. I've heard of it, but I've heard of people getting their money back. If you're behind that, it's not good. That was gone. ”
