By Forum Staff
State Attorney General Tish James on Wednesday issued a consumer alert warning New Yorkers of a scam that gives scammers access to bank and retirement accounts.
The scam, known as the “Phantom Hacker,” usually occurs in three phases, where each phase builds on the last phase to create a convincing scenario for victims. First, victims receive a text, call, or email claiming that their account was hacked, and they are instructed to contact a customer support phone number. Once individuals contact the scammers, they are instructed to download a software program that allows the hackers access to their computer. Then, to convince the victims that this is a legitimate process, the victims receive two separate calls from scammers impersonating their bank and a government agency. Since 2024, scammers using these coordinated attacks have been able to steal over $1 billion from victims who were nearing or over their retirement age.
The “Phantom Hacker” scam works in three phases to convince victims, most of whom are at or near retirement, that it is legitimate. James is urging New Yorkers to beware of this scam, which works as follows:
The Tech Support Phase
- A victim will receive a call, text, email, or pop-up window instructing them to urgently contact a customer support phone number.
- Once the victim calls the number, the scammer tells the victim to download a software program that gives the scammer remote access to the victim’s computer.
- Upon access, the scammer will ask the victim to open their bank accounts under the guise of locating any unauthorized charges, but in reality, he or she is trying to ascertain which bank account has the most funds to target.
- When a target account has been determined, the scammer then tells the victim to wait for a call from the financial institution hosting that account.
The Financial Institution Phase
- A new scammer contacts the victim and claims to be calling from the financial institution, and states the bank account has been accessed by a foreign hacker.
- The victim is told he or she must move their money to a third-party account, such as an account with the Federal Reserve or another U.S. government agency, for safekeeping.
- The scammer instructs the victim to move their money via wire transfer, cash, or cryptocurrency. Sometimes the scammer will demand the transfer of money be conducted in multiple transactions over a span of days or months.
- The scammer will adamantly tell the victim not to let anyone know why money is being transferred out of the account.
The U.S. Government Agency Phase
- To lend legitimacy to the prior two phases, another scammer may impersonate a government agency employee and contact the victim.
- If the victim begins to suspect something is amiss, the scammer will send a follow-up email or letter on a fake government letterhead to assure the victim of the legitimacy of the situation.
If you or someone you love is a victim of a scam, you can contact the Office of the Attorney General by filing an online complaint at formsnym.ag.ny.gov/OAGOnlineSubmissionForm/faces/OAGBITHome;jsessionid=mS4010CDLQHVVpThpuTADlVYsAwgLgxAT1J50yRNhPAhVvAmeI8q!1953180851 or by calling (800) 771-7755.
