'Phantom Hacker' scam targets seniors across the country

(NewsNation) — Seniors across the country are increasingly falling victim to "phantom hacker" scams.

These scams unfold in three phases, each designed to further convince victims that they are communicating with real individuals or institutions, and that they must transfer their money to prevent it from being stolen.

New York Attorney General Letitia James put out a consumer alert Sept. 10, warning people about the scam. According to the alert, since 2024, scammers have stolen over $1 billion from victims close to or over retirement age using the "phantom hacker" techniques.

Three phases of 'phantom hacker' scams

According to the alert, the first phase of the scam involves a "Tech Support" imposter. This scammer contacts the victim through email, phone or other means, pretending to provide tech support. They then direct the victim to download software that enables the scammer to remotely access the victim's computer, allowing them to view financial and other personal information. After this, the scammer instructs the victim to wait for a call from their financial institution.

The second phase involves a "Financial Institution" imposter who will then reach out to the victim and claim that their financial accounts have been hacked and direct them to transfer their money into a secure government entity.

The third and final phase involves a "US Government" imposter who pretends to be a government employee and may provide official-looking documents to convince the victim further that their funds need to be moved.

The three phases work in conjunction with each other to "enhance the trust victims place in the scammers and identify the most lucrative accounts to target," according to the Department of Justice.

How to avoid the scam

Ashton Bingham and Art Kulik from Trilogy Media joined "CUOMO" on Tuesday to discuss how people can prevent "phantom hacker" scams and similar attacks from happening.

Kulik says that if someone ever reaches out claiming to be a bank official or another prominent figure, the person should "do (their) own research and go on the official website" that the person is claiming to be from.

Bingham says that "the best way to fight a scam is to stop it from happening in the first place" and by creating "awareness."

Bingham recommends that people establish "second ways of communicating" to "verify if someone is calling you pretending to be Bank of America or calling you pretending to be your grandson in danger."

Tips from AG James to avoid being scammed

New York AG Letitia James provides the following tips to avoid scams:

• Do not click on unsolicited links provided via text or email.
• Do not call the number provided in a pop-up, text or email.
• Never give someone you don’t know remote access to your computer.
• Never move your money out of your bank account at the urging of someone over the phone.
• If someone claims there is an issue with your bank account, hang up and contact your financial institution by calling the number printed on your bank statement instead.
• Remember, a scam is effective because the scammer creates a circumstance that relies on pressuring the victim into life-altering decisions on the spot and swearing them to secrecy. The best way to combat this is to hang up and contact someone you trust and let them know your situation.