The New Scam Draining Seniors’ Accounts
Scammers have evolved past obvious phishing scams, and one of the newest—and most insidious—threats is aimed squarely at older adults. Known as the “Phantom Hacker” scam, it uses multiple layers of impersonation and false urgency to coax victims into handing over access to their finances.
According to the FBI’s Internet Crime Complaint Center, the Phantom Hacker model has gone global, and that the price tag for victims may exceed $1 billion. Here’s how this devious ripoff works.
Phase 1: Tech support imposter
The scam often begins with a pop-up, email, text, or call warning that your computer is infected or compromised. The attacker urges you to call “tech support.” Once you connect, they may ask you to install remote-access software. As you log into your bank or financial statements, they “help” you review for unauthorized activity.
Phase 2: Financial institution imposter
Next a second scammer, posing as a representative of your bank or brokerage, contacts you with alarming news: a foreign hacker has breached your account. To “protect” your funds, they instruct you to move money to a “safe” third-party account. The transfer is usually irreversible via wire, cash, or cryptocurrency.
Phase 3: Government imposter
As a final push, scammers may impersonate a government agency like the Federal Reserve, even sending legit-looking letters or emails. This gives victims a sense of legitimacy and urgency, compelling them to finalize the transfers. Victims may lose not only checking or savings account balances, but also retirement funds and investments. Because the transfers run through channels that are hard to reverse, recovery is exceedingly difficult.
If you or a loved one suspects such a scam, report it immediately to the Internet Crime Complaint Center and your bank. Also, resist pressure to act immediately; a genuine institution will never demand that you move funds to a “government” or alternate account for “protection.”
Staying ahead of scammers’ advancements might seem overwhelming, but Jeanne D’Arc has resources to keep you in the know to defend your money and data. Our dedicated Financial Wellness team leads education for all ages, including our Spot the Scam interactive workshop. Our partner, GreenPath Financial Wellness, also offers free online courses, counseling, and informative checklists and guides about fraud and scams.
