Phantom Hacker Scam: NY AG Warns Elderly of $1B Heist

New York – The New York State Attorney General Letitia James has issued a consumer alert, warning New Yorkers about a sophisticated cyber scam known as the ‘Phantom Hacker’ that has stolen over $1 billion from seniors. This three-phase scam targets retirement accounts and has been particularly effective at exploiting elderly victims.

Firstly, victims receive a fraudulent message claiming their account has been hacked, directing them to contact a supposed customer service number. Upon doing so, they are instructed to download software that gives the scammers remote access to their computer. This is followed by two separate calls from impostors posing as bank and government agency representatives, adding legitimacy to the scheme.

Since 2024, coordinated attacks using this method have resulted in over a billion dollars being stolen from victims nearing or exceeding retirement age. Attorney General James offers New Yorkers advice on how to protect themselves from this scam.

‘Malicious thieves are stealing the hard-earned retirement savings of older New Yorkers who depend on them to pay their bills,’ said AG James. ‘I urge all New Yorkers to be cautious of this three-phase scam that pretends to be legitimate. Our seniors deserve to live comfortably in retirement with the savings they have worked so hard for. If you or someone you know has been victimized by this scam, please contact my office immediately.’

The ‘Phantom Hackers’ operate in three phases to convince victims, mostly retirees or those nearing retirement, that their request is legitimate:

1. The Technical Support Phase: Victims are contacted via call, text, email, or pop-up alert, urging them to contact a customer service number. Once they do, the scammer asks them to download software for remote access to their computer.

2. The Financial Institution Phase: A new scammer contacts the victim, claiming to represent the financial institution that houses their account. They instruct the victim to transfer money to a third-party account under the guise of government custody.

3. The U.S. Government Agency Phase: Another scammer impersonates a government agency to legitimize the previous phases, further adding credibility to the scheme.

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