Nationwide “Phantom Hacker” Scams Targeting Seniors Cause Significant Financial Losses, Warns FBI
In a recent public service announcement, the FBI has raised awareness about a growing nationwide trend of “phantom hacker” scams, which are specifically targeting senior citizens. These scams have resulted in seniors losing their entire life savings, retirement funds, and investment accounts to these fraudulent activities.
Phantom hacker scams are an evolution of tech support scams, a type of cybercrime that has been on the rise in recent years. According to the FBI, losses from tech support scams have increased 40% compared to the same period in 2022. However, the total dollar loss during this time was not disclosed.
The FBI reports that half of the victims of these scams are over 60 years old and account for 66% of the total financial losses. This demographic is particularly attractive to scammers due to their potentially larger nest eggs and their heightened awareness of potential risks to their life savings.
The operation of these phantom hacker scams is complex and involves multiple layers. Scammers initially pose as computer technicians from well-known companies and convince victims that they have a serious computer issue, such as a virus, and that their financial accounts are at risk from foreign hackers.
Accomplices then impersonate officials from financial institutions or the U.S. government, urging victims to move their money to new supposedly “safe” accounts to protect their assets. However, none of this is true, and the scammers gain full control of the victims’ money.
The FBI’s Cleveland bureau has received approximately 19,000 complaints related to tech support scams between January 2023 and June 2023, resulting in estimated losses of over $542 million. In comparison, there were about 33,000 complaints and $807 million in losses reported in 2022.
To help consumers protect their money from these scams, the FBI has provided five essential tips:
1. Do not give control of your computer to anyone who contacts you unsolicited.
2. Do not provide your financial information to anyone who contacts you unsolicited.
3. Do not rely solely on caller ID or the appearance of a phone number to determine if the caller is legitimate.
4. Do not purchase gift cards or make wire transfers as a form of payment for tech support services.
5. Do not let anyone pressure you into making immediate decisions regarding your finances.
It is crucial for individuals, particularly seniors, to remain vigilant and skeptical when dealing with unexpected calls or messages regarding their computer security or financial accounts. By following these tips and staying informed, consumers can protect themselves from falling victim to phantom hacker scams and other fraudulent activities.