Phantom Hacker Scam: N.Y. AG Warns of Elder Fraud

New York – The New York Attorney General, Letitia James, issued a consumer alert today, warning residents about a sophisticated phishing scam known as the ‘Phantom Hacker’ that targets seniors. This scam involves hackers gaining access to bank and retirement accounts of older adults, often resulting in millions of dollars stolen.

The ‘Phantom Hacker’ scheme operates in three phases. First, victims receive a message, call, or email claiming their account has been hacked and are instructed to contact a customer service number. Next, they are asked to download software allowing remote access to their computer. Under the guise of legitimate support, the hacker identifies the victim’s most significant account. In the second phase, a new scammer impersonates a bank official, asking the victim to transfer money to a third-party account for ‘safety’. Finally, another imposter may pose as a U.S. government agency to validate the previous steps.

‘Malicious scammers are stealing the retirement savings of older adults they have worked hard to earn,’ Attorney General James said. ‘I urge all New Yorkers to be cautious of this three-phase scam that poses as legitimate.’

Attorney General James offered tips for protecting against the ‘Phantom Hacker’ scheme:

1. The Support Technical Phase: Victims receive a message or call and are instructed to download software for remote access.
2. The Financial Institution Phase: A scammer posing as a bank official asks the victim to transfer money to a third-party account.
3. The Government Agency Phase: Another imposter claims to be a government agency to validate the previous steps.

Victims are often instructed not to disclose the reason for transferring the funds. Attorney General James encouraged New Yorkers to report any suspicious activity immediately.