What is a Phantom Hacker Scam?
A Phantom Hacker Scam occurs when people pretend to be tech experts and contact you by phone, text, or email, claiming your computer or device has a virus. Lately, these scams have become more common. Scammers pretend to be tech professionals or well-known financial or banking organization employees.
Scammers first call, text, or email you, emphasizing that your device is compromised. They aim to scare you into giving up personal information, money, or valuable items. Then, , they create a sense of urgency and falsely earn your trust to trick you into sharing sensitive details, benefiting them financially. These scams prey on cybersecurity fears; therefore, being cautious is crucial before taking action.
Moreover, scammers often convince victims to transfer money to a “secure” account they control. They pose as representatives from a well-known software or service company, claiming they’ve detected a potential hack on the victim’s computer. Pretending to help, they instruct the victim to download software, supposedly to detect and remove malware. Scammers sometimes persuade victims to buy expensive items like gold, claiming they will safeguard them. They follow a familiar pattern: they pose as government officials, claim to have detected a hack on the victim’s device, and convince the victim to buy gold to “protect” their assets. A fake courier collects the gold, resulting in financial loss for the victim.
The numbers
According to the FBI, there has been a US increase in phantom hacker scams, a type of fraud significantly impacting senior citizens who often lose their entire bank, savings, retirement or investment accounts to such crime. As of August 2023, losses were up 40% during the same period in 2022. It didn’t disclose the total dollar loss during that period.
Further, an RBC survey demonstrates that more Canadians are exposed to personal data breaches. Most Canadians (88%) report experiencing more fraudulent activity, with 73% saying scammers directly targeted them. Over half of Canadians (57%) were notified about their personal information being exposed in a data breach. This is a sharp rise from 20% in 2022. While more Canadians know about scams, most (68%) still don’t know how to respond when their data is compromised. In this case, there is a need for better education and preparation.
Reputable financial institutions and law enforcement will never:
- Instruct you to buy expensive items like gold for safekeeping.
- Claim your device is compromised.
- Pressure you to buy valuables, make payments, or share personal information.
What can you do
- Click on links only if you trust the source.
- Call only verified numbers, and avoid dialling those from suspicious texts or emails about hacking.
- Hang up immediately when you receive unsolicited calls.
- Consult a trusted company to check your device if you suspect it’s been hacked.
- Reach out to your bank directly using verified contact information.
- Refuse to give money, valuables, or personal information to anyone you suspect may be a scammer.
- Discuss suspicious calls, emails, or texts with a trusted person before acting.
Stay alert to online fraud and secure your accounts using the latest safety practices. Our mobile app, FRAUDSTER, offers tips and tools for protecting yourself. Available on Apple and Android, you can learn more at www.FraudsterApp.com. Already have the app? Tap the training icon to sharpen your self-protection skills.
