TL;DR: Phantom hacking scams occur when people pose as tech experts and contact you by phone, text, or email, claiming your computer or device has a virus. These scams have become more common recently.
The Canadian Anti-Fraud Centre warned of a spike in scams involving fraudsters spoofing bank or government officials, law enforcement, and now even Amazon and credit reporting agencies like Equifax and TransUnion.
How it works
Scammers pose as tech professionals or employees of well-known financial or banking organizations. Scammers 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 before taking action is crucial.
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 purchase expensive items, such as gold, claiming they will safeguard them.
In some cases, scammers may already have the victim’s debit card and password, which they may have obtained from a previous data breach or stolen through an infostealer attack on the target’s device. However, they won’t be able to access the account if the target has multifactor authentication (MFA) enabled, so they trick the target into sharing this code. Scammers ask victims to verify their identity by entering a code sent via text or email—the very MFA code that grants access to the target’s bank account.
Phantom hacking numbers
According to the FBI, there has been a rise in phantom hacker scams in the US, a type of fraud that significantly impacts senior citizens, who often lose their entire bank, savings, retirement, or investment accounts to such crimes. As of August 2023, losses had increased by 40% compared to the same period in 2022. It didn’t disclose the total dollar loss during that period.
Reputable financial institutions and law enforcement will never:
- Instruct you to purchase expensive items, such as gold, for safekeeping.
- Claim your device has been compromised.
- Pressure you into buying valuables, making payments, or sharing personal information.
Mary’s example
Mary received a call from someone claiming to be from her bank’s fraud department. The caller, who sounded professional and reassuring, told her that hackers had targeted her account. To “help” her, they transferred her to a supposed FBI agent, who warned that foreign cybercriminals had infiltrated her accounts.
The phantom hacking agent warned her that her money wasn’t safe in the bank and urged her to transfer it to a “secure government account” until they neutralized the threat. Fearing she’d lose her life savings, Mary obeyed. Over several days, she wired $150,000 directly into accounts controlled by the scammers.
When Mary called her bank to check on the situation, she learned the devastating truth—there was no hacker, no FBI agent, and no secure account. The entire operation was a phantom hacker scam, where fraudsters pose as tech support, bank representatives, or government officials to manipulate victims into transferring money. When she realized the deception, the funds were gone, funnelled through multiple accounts overseas. The bank and law enforcement could do little to recover them.
Defend against the scam
- Click on links only if you trust the source.
- Call only verified numbers, and avoid dialling those from suspicious texts or emails about hacking.
- Please just hang up immediately when you receive unsolicited calls.
- Consult a trusted company to check your device if you suspect it’s been hacked.
- You can contact 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 taking any action.
Stay alert to online fraud and secure your accounts using the latest safety practices. Our mobile app, FRAUDSTER, provides tips and tools to help protect you. 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.
