Consumer Alert:
Attorney General James Warns New Yorkers of Three-Phase Scam Targeting Seniors

NEW YORK – New York Attorney General Letitia James today issued a consumer alert warning New Yorkers of a scam that gives scammers access to bank and retirement accounts. The scam, known as the “Phantom Hacker,” usually occurs in three phases, where each phase builds on the last phase to create a convincing scenario for victims. First, victims receive a text, call, or email claiming that their account was hacked, and they are instructed to contact a customer support phone number. Once individuals contact the scammers, they are instructed to download a software program that allows the hackers access to their computer. Then, to convince the victims that this is a legitimate process, the victims receive two separate calls from scammers impersonating their bank and a government agency. Since 2024, scammers using these coordinated attacks have been able to steal over $1 billion from victims who were nearing or over their retirement age. Attorney General James is providing New Yorkers with tips on how to protect themselves from this scam. 

“Heartless scammers are stealing people’s hard-earned retirement savings that they rely on to pay bills,” said Attorney General James. “I am urging all New Yorkers to beware of this three-phase scam that is made to appear legitimate. Seniors deserve to live comfortably in their retirement years with the savings they worked hard to build over the years. If you or someone you know falls victim to this scam, please contact my office.”

The “Phantom Hacker” scam works in three phases to convince victims, most of whom are at or near retirement, that it is legitimate. Attorney General James is urging New Yorkers to beware of this scam, which works as follows:

The Tech Support Phase

• A victim will receive a call, text, email, or pop-up window instructing them to urgently contact a customer support phone number.
• Once the victim calls the number, the scammer tells the victim to download a software program that gives the scammer remote access to the victim’s computer.
• Upon access, the scammer will ask the victim to open their bank accounts under the guise of locating any unauthorized charges, but in reality, he or she is trying to ascertain which bank account has the most funds to target.
• When a target account has been determined, the scammer then tells the victim to wait for a call from the financial institution hosting that account. 

The Financial Institution Phase

• A new scammer contacts the victim and claims to be calling from the financial institution, and states the bank account has been accessed by a foreign hacker.
• The victim is told he or she must move their money to a third-party account, such as an account with the Federal Reserve or another U.S. government agency, for safekeeping.
• The scammer instructs the victim to move their money via wire transfer, cash, or cryptocurrency. Sometimes the scammer will demand the transfer of money be conducted in multiple transactions over a span of days or months.
• The scammer will adamantly tell the victim not to let anyone know why money is being transferred out of the account. 

The U.S. Government Agency Phase

• To lend legitimacy to the prior two phases, another scammer may impersonate a government agency employee and contact the victim.
• If the victim begins to suspect something is amiss, the scammer will send a follow-up email or letter on a fake government letterhead to assure the victim of the legitimacy of the situation.     

Attorney General James is providing the following tips to help New Yorkers avoid being scammed:

• Do not click on unsolicited links provided via text or email.
• Do not call the number provided in a pop-up, text, or email.
• Never give someone you don’t know remote access to your computer.
• Never move your money out of your bank account at the urging of someone over the phone.
• If someone claims there is an issue with your bank account, hang up and contact your financial institution by calling the number printed on your bank statement instead.
• Remember, a scam is effective because the scammer creates a circumstance that relies on pressuring the victim into life-altering decisions on the spot and swearing them to secrecy. The best way to combat this is to hang up and contact someone you trust and let them know your situation. 

If you or someone you love is a victim of a scam, please contact the Office of the Attorney by filing an online complaint or calling 1-800-771-7755.