The FBI is warning about a “Phantom Hacker” scam that has already cost Americans more than $1 billion, targeting vulnerable citizens, especially seniors.
The scheme typically starts with a call or message claiming a victim’s bank account has been hacked and urging immediate action. Victims are then told to install software to “scan” their device, which instead gives scammers full access.
“The concept is simple,” the FBI explained. “Scammers impersonate bank reps to convince victims that hackers have infiltrated their financial account. Victims are urged to move their money fast to protect their assets. In reality, there was never a hacker, and the money that was wired is now fully controlled by the scammer.”
After the software is installed, scammers can monitor victims’ banking activity in real time, identify their largest accounts, and then direct them to transfer funds under the pretense of protecting their money, Forbes reported.
The scammer requests the victim open their financial accounts to determine whether there have been any unauthorized charges – a tactic to allow the scammer to determine which financial account is most lucrative for targeting,” the FBI said.
The agency warns that attackers frequently support their claims with fake calls, emails, or letters from government agencies to enhance credibility. Victims are urged to take immediate action. Experts say the scam is particularly effective against the elderly.
Cequence Security’s Randolph Barr said, “One of the greatest heartaches is not being able to help our elders when they’re taken advantage of, especially after they’ve worked so hard to build and preserve their life savings.”
Black Duck’s Aditi Gupta added, “The simplicity of this scam is what makes it particularly convincing. Attackers exploit the trust associated with phone calls, making it easier to deceive vulnerable individuals.”
New variants of the scam involve screen-sharing requests over messaging apps, but the FBI warns the guidance is unchanged: never install software or grant remote access to anyone who contacts you unexpectedly, Forbes noted.