The FBI has warned that scammers are targeting older people in a “cold and calculated” scam designed to swipe their life savings.
In a press release on Oct. 3, the FBI said fraudsters contact their targets, posing as tech, banking, or government officials, claiming foreign hackers have breached their accounts. They then instruct victims to transfer their money to an account ostensibly owned by a U.S. government agency for protection.
The FBI has dubbed the scam “The Phantom Hacker.”
“They are targeting older members of our community who are particularly mindful of potential risks to their nest eggs. The criminals are using the victims’ own attentiveness against them,” Special Agent in Charge Robert K. Tripp said. “By educating the public about this alarming new scam, we hope to get ahead of these scammers and prevent any further victimization.”
The Phantom Hacker Scam
Scammers usually reach out to their targets via phone calls, texts, emails, and web pop-ups, claiming to be a customer support agent with a tech company. They instruct victims to install software to give them remote access to their devices under the guise of scanning for viruses.
The scammers get their targets to open their accounts to “determine which financial account is most lucrative for targeting,” the FBI said in its press release.
If the victim is deemed a lucrative target, another scammer, posing as a representative of a financial institution, will contact them, saying a foreign hacker has breached their account. Then, they instruct the victim to transfer their money to an account owned by the Federal Reserve or another U.S. government agency to keep it safe.
The target is directed to send the money “via wire transfer, cash, or wire conversion to cryptocurrency, often directly to overseas recipients,” the FBI said.
To allay the suspicion of their targets, another scammer, posing as a U.S. government agent, will contact the victim. They may even send the victim an email or letter with a U.S. government letterhead to trick them and allay their fears.
“Victims often suffer loss of entire banking, savings, retirement, and investment accounts under the guise of “protecting” their assets,” the FBI said.
Alarming Rises in Elderly Scams, FBI’s Security Recommendations
The Internet Crime Complaint Center’s 2022 Elder Fraud Report showed a staggering 84% surge in scams targeting the elderly compared to the previous year. With a reported loss of $3.1 billion, this demographic proves particularly vulnerable to online threats.
The FBI outlined some security recommendations to avoid falling victim to this scam:
- Avoid unsolicited digital communications, including pop-ups, links in text messages, and suspicious emails.
- Decline software downloads from unfamiliar sources and never grant remote computer access to unknown individuals.
- Remember: the U.S. Government will never solicit funds via unconventional methods like cryptocurrencies or prepaid cards.
The U.S. Department of Justice has echoed this sentiment, emphasizing that no federal agency will ever request citizens to wire money.
The FBI urged victims to report suspicious or fraudulent activities to its Internet Crime Complaint Center. By providing comprehensive details of the scammers, including their methods of communication and bank details, victims can help law enforcement fish out and apprehend these malicious actors.
We recommend a healthy level of suspicion when responding to unsolicited contacts and prioritizing your online safety. Read our guides to PayPal scams, Facebook scams, and help desk fraud to learn more about scammers’ modus operandi and how to spot a ruse.
Here’s a video of a viral YouTuber, Kitboga, baiting scammers who he said were after “unsuspecting grandparents.”
For more scam-related news, follow us on X (Twitter), Threads, and Mastodon!
