This is the latest in our “How to Spot” series. In this episode we explore how to identify phantom hacker scams. We highlight an emerging or common scam that we see being used against consumers. The case study includes an example, based on true events, of “How It Can Happen”. And finally, we provide tips on how to avoid becoming a victim. Of course, these scams come in many variations. But this basic knowledge should be helpful in keeping you alert. Check out some of the other posts from this series here.
Introduction to Phantom Hacker Scams
In recent months, the FBI has issued a nationwide alert regarding a surge in “Phantom Hacker” scams. Senior citizens are the primary targets of this scam. This sophisticated evolution of tech support scams involves scammers adopting various personas. Those personas include tech support, financial institution representatives and even government officials. The goal is to exploit trust and trick victims, particularly seniors, into surrendering their life savings under the guise of protecting their assets.
Background on Tech Support Scams
Phantom hacker scams are a version of a “tech support” scam. These types of scams have long sought to exploit online consumers, especially seniors. Before we dive into the specifics of phantom hacker scams, it is useful to review some of the basics of tech support scams.
Tech support scams typically involve scammers pretending to be representatives from well-known technology companies. They often claim to provide technical support or assistance. These scams can take various forms, including phone calls, emails, pop-up messages, or online ads. Here are some common characteristics of tech support scams:
- Cold Calls: Scammers may call individuals claiming to be from a reputable tech company, informing them of a supposed issue with their computer, software, or account.
- Pop-Up Messages: Some scams involve pop-up messages on a user’s computer or device, warning of a virus or security threat and urging them to call a provided phone number for immediate assistance.
- Emails: Scammers may send emails posing as tech support representatives, claiming that the recipient’s device has a problem. Then they provide contact information for assistance.
- Fake Websites: Scammers may create fake websites that resemble legitimate tech support pages, tricking users into calling a provided number or downloading malicious software.
- Remote Access: In some cases, scammers may convince victims to grant them remote access to their computer under the guise of fixing a problem. This allows scammers to install malware or access sensitive information.
- False Claims: Scammers often make false claims about issues on the victim’s device. They try to createa sense of urgency to prompt immediate action.
Three Phases of Phantom Hacker Scams
This scam usually operates in three distinct phases. Each is carefully orchestrated to maximize the chances of success.
Phase 1 – Tech Support Imposter:
Initially, scammers, posing as tech or customer support representatives from reputable companies. They initiate contact with victims through various channels such as phone calls, texts, emails, or pop-up windows on the victim’s computer. The victims are then directed to call a specified number for “assistance.”
Upon making contact, victims are instructed to download a software program. This gives the scammers remote access to the computers. The scammer falsely claims the computer is compromised or at risk of being hacked, instilling fear in the victim. The scammer then persuades the victim to open their financial accounts, helping the scammer identify the most lucrative target.
Phase 2 – Financial Institution Imposter:
With the information obtained in Phase 1, scammers posing as representatives of the victim’s financial institution contact them. The victim is informed that their computer and financial accounts have been accessed by a foreign hacker. To ensure the safety of their funds, the victim is directed to transfer money to a supposedly secure third-party account. These accounts are often overseas, using methods such as wire transfers, cash or cryptocurrency.
Victims are explicitly instructed not to disclose the real reason for moving their money. They emphasize the urgency of the situation and the need for secrecy.
Phase 3 – US Government Imposter:
To add an additional layer of credibility, victims may receive contact from scammers posing as employees of the Federal Reserve or another US Government agency. If suspicions arise, scammers might go as far as sending emails or letters on seemingly official government letterhead to legitimize the scam further.
The scammer perpetuates the narrative that the victim’s funds are in jeopardy and must be moved to a new “alias” account for protection, maintaining the illusion until the victim capitulates.
How Phantom Hacker Scams Work in Real Life
Suggestions to Help Avoid Falling Victim to this Scam
- Financial institutions, government authorities or any reputable business will never pressure you to send money via wire transfer to foreign accounts, cryptocurrency or gift/prepaid cards.
- This scam almost always originates via pop-up ads, links in text message or email links and attachments. Don’t click on any of those or engage with other unsolicited contact that looks similar.
- Do not download software from unsolicited popups, emails, etc.
- Never give online access to unknown individuals to your computer, financial accounts, email, etc.
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