New Yorkers are losing retirement savings to a three-phase scam that tricks victims using fake tech support, banks, and government agencies.
Attorney General Letitia James is warning New Yorkers about a growing scam that’s already cost victims over $1 billion — most of them seniors.
The scam, dubbed the “Phantom Hacker,” uses a coordinated, three-part attack to trick people into giving hackers full access to their bank and retirement accounts. It starts with a fake tech support alert and ends with scammers impersonating government officials.
How the scam works
The scheme unfolds in three stages:
1. Tech support phase
Victims receive a fake alert — often by phone, email, text, or pop-up — telling them their account was hacked. The message urges them to call a “customer support” number.
Once they call, scammers ask them to download software that gives remote access to their computer. Then they’re asked to open their bank accounts, supposedly to check for unauthorized charges — but the scammer is actually scanning for the biggest balance to steal.
2. Financial institution phase
A second scammer, posing as the victim’s bank, calls to say their account has been hacked by someone overseas. The victim is told they must quickly transfer money to a “safe” account, often described as being held by the Federal Reserve or another U.S. agency.
The scammer might ask for money to be moved via wire, cash, or cryptocurrency — sometimes in chunks spread out over days or months. Victims are told to keep the transfer secret.
3. Government agency phase
To make it all feel real, a third scammer calls pretending to be a government official. If the victim starts to get suspicious, they may receive a fake follow-up email or letter with official-looking letterhead.
Who’s being targeted?
Attorney General James said the scam is primarily targeting older adults — especially those nearing or already in retirement — who are more likely to have sizable savings.
“Heartless scammers are stealing people’s hard-earned retirement savings that they rely on to pay bills,” James said. “Seniors deserve to live comfortably in their retirement years with the savings they worked hard to build over the years.”
Tips to stay safe
James offered the following tips to help New Yorkers protect themselves:
- Don’t click on links in unsolicited emails or texts.
- Never call the number provided in a pop-up alert, email, or message.
- Never give remote access to your computer to someone you don’t know.
- Don’t move money out of your bank account just because someone tells you to over the phone.
- If you’re concerned about your bank account, call your bank directly — using the number on your bank statement, not one provided by a stranger.
- Talk to someone you trust if something feels off.
Scammers often rely on pressure and secrecy to get victims to act fast. The best defense is to pause, hang up, and ask for help.
If you or someone you know may have fallen victim to this scam, contact the New York State Attorney General’s Office at 1-800-771-7755 or file a complaint online.
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