The FBI is sounding the alarm over a sophisticated scheme that has already stolen more than $1 billion from older Americans. Known as the “Phantom Hacker Scam,” the operation is devastating retirement accounts and life savings nationwide, with experts warning that artificial intelligence (AI) is making these attacks harder to spot.
The scam unfolds in three calculated phases. First, fraudsters pose as tech support representatives, reaching victims by phone, email, or text. They convince seniors to install software that grants remote access to their computers. Once inside, the impostors direct victims to open financial accounts under the guise of checking for “unauthorized charges.”
Next, criminals escalate the deception by posing as the victim’s bank. They claim foreign hackers have infiltrated the account and instruct seniors to transfer money to a so-called “safe” third-party account. Victims are often pressured to send multiple transactions, sometimes over weeks or months, through wire transfers, cryptocurrency, or even cash.
Finally, some victims are contacted by impostors pretending to be U.S. government officials. These callers reinforce the urgency and legitimacy of the ruse, persuading victims to move even more funds into fake “protected” accounts.
Cybersecurity expert Pete Nicoletti says criminals are leveraging AI to target victims with precision. By analyzing social media, scammers tailor messages to personal interests—such as hobbies or collectibles—making them appear more believable. “They’re using AI to craft hooks that seniors trust,” Nicoletti explained.
Recovery is rare. Victims who act immediately have only a slim chance—around 10%—of getting stolen funds back. Delays almost always mean permanent loss.
The FBI urges families to discuss online safety openly, reminding seniors that no bank or government agency will ever ask them to transfer money to “protect” their accounts.