The Rise of ‘Phantom Hacker’ Scams: How Seniors are Being Targeted

There has been a significant increase in “phantom hacker” scams throughout the United States, with senior citizens being the primary victims, according to the FBI. These scams, which are an evolution of tech support scams, have resulted in the loss of entire bank accounts, savings, retirement funds, and investments for many seniors. As of August 2023, losses from tech support scams have risen by 40% compared to the same period in 2022, although the exact monetary loss has not been disclosed.

The FBI’s announcement revealed that half of the victims were over the age of 60, accounting for 66% of the total financial losses. Senior citizens are particularly susceptible to these scams due to their larger accumulated wealth compared to younger age groups, making them an attractive target for criminals. Additionally, older adults are often more cautious about protecting their life savings, making them more vulnerable to manipulation.

The criminals behind these “phantom hacker” scams are cold and calculated, taking advantage of the victims’ attentiveness. They typically pose as computer technicians from reputable companies and trick victims into believing that their computers are infected with viruses, putting their financial accounts at risk. To protect their assets, the scammers then pretend to be officials from financial institutions or the U.S. government, persuading victims to transfer their money from supposedly vulnerable accounts to new “safe” accounts. In reality, these claims are false, and the scammers gain full control over the victims’ funds.

Between January 2023 and June 2023, approximately 19,000 victims reported tech-support scams to the FBI, resulting in estimated losses exceeding $542 million. In comparison, there were around 33,000 complaints and $807 million in losses in 2022, according to FBI data.

To protect consumers from falling victim to these scams, the FBI offers five “don’ts”:

1. Don’t give control of your computer to someone who contacts you unsolicited.
2. Don’t rely on caller ID or the organization’s name to verify a caller’s identity.
3. Don’t give your credit card or bank account number to anyone asking for it over the phone.
4. Don’t provide personal information, such as your Social Security number, to anyone you don’t know.
5. Don’t make any rushed decisions or feel pressured to act immediately.

It is crucial for all individuals, especially seniors, to remain vigilant and educated about these scams to avoid becoming victims.