Federal authorities issue alert for elderly individuals regarding a high-dollar con scheme depleting pension savings, with artificial intelligence reportedly being the culprit behind it
The Phantom Hacker Scam, a sophisticated fraud that has cost Americans over $1 billion since at least 2024, according to the FBI, is using artificial intelligence to target seniors with personalized tactics.
The scam operates in three phases, starting with a tech support impostor who gains remote access to victims' computers by having them download a program. This is followed by the financial institution impostor, who instructs victims to move their funds to a "safe" third party account via wire transfer, cash, or cryptocurrency. The final phase involves a U.S. government impostor, who prompts victims to move their funds to an "alias" account for protection.
Pete Nicoletti, the chief information security officer at Check Point, warns that this scam is becoming increasingly prevalent and advises families to discuss ways to protect their senior loved ones. He also states that victims rarely get their money back, even after reporting it stolen to authorities. The chance of getting money back if reported stolen the same day is in single-digit percentages, according to Nicoletti.
Scammers are now targeting seniors with specific interests and profiles, as per Pete Nicoletti. An example of a tactic used by scammers is sending emails or messages about a product the senior has shown interest in, pretending it's available for a low price and requesting payment.
Despite the widespread nature of the scam, there is no publicly available information identifying the mastermind behind the Phantom Hacker Scam exploiting seniors using artificial intelligence. However, the FBI posted a reminder about the scam on July 15, urging the public to stay vigilant and protect their personal information.
Nicoletti advises seniors and their families to be cautious of unsolicited emails or messages, especially those requesting personal or financial information. He also recommends regularly updating antivirus software and using strong, unique passwords for all online accounts.
In the event that funds are stolen, it is crucial to report it to authorities immediately. Delaying the report of stolen funds beyond the same day significantly decreases the chances of recovering the money, as per Nicoletti.
As the Phantom Hacker Scam continues to evolve, it is essential for seniors and their families to stay informed and take necessary precautions to protect their personal and financial information.
