It always feels like con artists are a couple of steps ahead of everyone, and that is true when it comes to the way they run their schemes. Scammers are typically able to get their hands on phone numbers and emails to target potential victims.
One way the cons get the personal information is through data breaches. Another common method is to utilize public information sources. In addition, scammers also use social engineering, a method of getting victims to share their own information.
Fraud is Booming in the United States
Unfortunately for victims, fraudulent scams have never been more popular. The financial losses suffered through fraud in 2024 were up 23% from the 2023 numbers. In 2024, $12.9 billion was lost through fraud, an increase from the previous year’s $10.4 billion.
The entirety of that number is not made up of phantom hacker schemes, but these types of schemes are certainly on the rise. The National Anti-Scam Center reported that $69.5 million was lost to social media scams and $107.2 million was lost to phone scams.
Elderly People Are Frequently Targeted by Scammers
People who are around 40 years old have spent the majority of their lives with access to the internet and are somewhat warier of scams online. Many con artists look to find older people to run their schemes, especially when they can exploit an elder person’s lack of understanding of the latest technologies.
Scammers also feel that an older person who is not adept at technology could be more trusting, and they use this to gain access to their bank accounts and personal information.
Hackers Take Money From You Via an App
The FBI is particularly concerned about the Phantom Hacker scheme. In this plot, the scammer first contacts the victim in a number of different ways, via text, email, phone call, etc. The perpetrators then inform the victim that their devices have been hacked, but they will help them through the process.
As the scammer walks the target through the scheme, they have them download a new app on their device. The mark is then told to transfer their money from their bank account to a ‘safe harbor’ via the app. But it turns out the safe harbor is an account or crypto wallet owned by the scammer, and the money is now gone.
The FBI Wants People to Look Out for Phantom Hacker Scams
A recent warning from the Los Angeles FBI office directly warned citizens about phantom hacker scams. According to the bureau office, in just 6 months in 2023, people lost $542 million, and there were more than 19,000 complaints.
Phantom hacker scams directly targeted the elderly during this period, as 50% of all of the victims were over the age of 60, and those people represented 66% of the money lost. This was more than a 40% increase in losses from the same scam over the last year.
The Bureau Has Delivered a Warning About Downloading Apps
Technology is in a period of rapid development, and it is profoundly impacting American life. This is especially seen in artificial intelligence, where features like ChatGPT and Co-Pilot are making life easier for millions of Americans.
These improvements in technology, though, also lead to scammers trying to take advantage of people, and now they can do so in a variety of ways. One common scam is for people to identify themselves as government officials in a way to scare people into sending money. The scheme has gotten so widespread that the FBI has delivered a warning.
The Scam Has 3 Separate Prongs
The scam that the FBI warned about features three separate methods, which depend on the way the victim reacts. The first scam features a tech support imposter. By the time the caller gets to tech support, they are likely worried and confused about the information they are receiving.
The con artist takes advantage of this unease and urges the victim to download a piece of software to fix the current problem. The issue is that there is no problem in the first place, and the newly installed software finds a false virus. The tech support uses this ‘virus’ to convince the user to open their financial information, which they are now able to access.
The Second Prong Features a Fake Banking Institution
Another way scammers get access to people’s personal information is by posing as a representative of a financial institution who then claims that the mark has been hacked by a 3rd party from another country.
The con artist then tells the victim that their hacked money has to be moved to a safe 3rd party location. The victim is then told to transfer money to a foreign account via wire transfer, crypto, or cash. The mark is also told not to tell anyone about the situation.
The Third Prong Has Fake Government Officials
In the third scam method, the perpetrator tells the victim that they are a government employee, such as someone from the Federal Reserve. The idea that the government is now involved is meant to further intimidate the victim into thinking there is serious trouble.
Posing as the official, the scammer influences the victim to transfer the funds again, this time into an account that they own. Once the money is gone and the victim attempts to contact the government about their savings, it is nowhere to be seen.
Conclusion
The most worrying thing about these types of scams is how many different ways they could fool people. The scammers have also become much more sophisticated and can use different technologies to make their ploys seem more realistic.
The best thing that people can do is know that these kinds of ploys are out there, and they have to be vigilant about who they are speaking to online. And they should be very careful before transferring any kind of money.