New Yorkers, especially seniors, are facing a new wave of sophisticated scams designed to hijack their life savings through a scheme known as the "Phantom Hacker." According to a consumer alert from Attorney General Letitia James, as obtained by the Office of the New York State Attorney General, this operation is a three-phase attack involving deception that convinces victims of its legitimacy. The Attorney General's office reports that these scams have plundered more than $1 billion from individuals nearing or in retirement since 2024.
The con begins with a message urging the victim to quickly contact a fraudulent customer support number. In an attempt to address a supposed account hack, victims are directed to download software that grants the scammer remote access to their computer. Attorney General James warns that the scammers will then appear to scrutinize bank statements to find unauthorized charges, but in truth, they are searching for the most lucrative account to target. The victims are subsequently told to expect contact from their bank.
In the next phase, the scam takes on a more sinister turn as another scammer, posing as a financial institution representative, alarms the victim with claims of a foreign hacker compromising their account. The fraudster then pressures the individual to transfer funds to a third-party account for 'safekeeping.' This can require transferring cash, wire transfers, or even cryptocurrency in a series of transactions, with explicit instructions to keep the reasons for the transfer a secret.
As reinforcement of the scam's credibility, a third scammer might pose as a government agency employee contacting the victim. If the victim shows signs of suspicion, they may receive a follow-up email or letter on counterfeit government letterhead to further ensure the credibility of the scam. "Heartless scammers are stealing people’s hard-earned retirement savings that they rely on to pay bills," Attorney General James stated. She insists that New Yorkers need to be vigilant of this scam and has imparted a list of tips to protect oneself from falling victim to such deceitful tactics, as reported by the Attorney General's Office.
Key advice from the Attorney General includes avoiding unsolicited links received via text or email, not calling numbers provided in pop-ups or messages, and never giving remote computer access to an unverified party. If you suspect fraud with your bank, contact your financial institution directly using the number on your statement. Anyone who suspects that they, or someone they know, may have fallen prey to such a scam should immediately reach out to the Office of the Attorney General by filing an online complaint or calling 1-800-771-7755.
