Phantom Hackers are Making Life Savings Disappear 2023

In Cleveland, Ohio, our dedicated allies at the Cuyahoga County Scam Squad have a crucial warning to share regarding a disturbing and pervasive threat that is decimating individuals' life savings.

The FBI has identified this menace as the 'Phantom Hacker' scam, which specifically targets individuals who are usually adept at identifying potential scams. Despite their awareness, some are still falling prey to this insidious ploy.

Phantom Hackers Scam

   This nefarious scheme is cropping up across the nation, employing a cunning strategy. According to the FBI's Cleveland Field Office, it begins by luring victims through pop-up notifications, masquerading as a legitimate government agency. These deceptive pop-ups falsely claim that the victim's financial information has been compromised.

Charlie Johnston, the Assistant Special Agent in Charge of the Cleveland FBI, expressed deep concern, stating, "We have observed a significant surge in this scam."

The scam unfolds in a three-step process. Initially, victims receive pop-up notifications, text messages, or emails from individuals posing as tech support for their devices, urging them to engage in a conversation about safeguarding their devices and accounts.

Following this, the scammers instruct victims to contact them, citing the need for remote access to their computers to perform a malware scan. Subsequently, they assert that the victim's computer and accounts have all been infiltrated by hackers.

Johnston elucidated, "They'll then advise you that you'll receive a call from the fraud department of your financial institution or your investment brokerage, urging you to transfer your funds to a purportedly 'secure account' to shield them from hackers."

In the final phase of the scam, impostors pose as government officials, further enhancing the illusion of legitimacy. Johnston pointed out, "They'll enlist individuals who claim to be representatives of the U.S. government, even going as far as sending fraudulent letters on what appears to be official U.S. government letterhead."

Once the Phantom Hackers scammers gain control of a victim's computer, they may proceed to drain their financial accounts, leaving victims with limited recourse other than reporting the crime to law enforcement.

Johnston emphasized, "It's important to remember that many victims of these scams may feel embarrassed, but we urge them not to. We want them to come forward and report it."

To protect oneself from falling victim to "The Phantom Hackers" scam, the FBI recommends the following precautionary measures:

1. Refrain from clicking on unsolicited pop-ups, links sent via text messages, or email links or attachments.

2. Avoid contacting the telephone number provided in a pop-up, text, or email.

3. Never download software at the request of an unknown individual who contacted you.

4. Do not grant control of your computer to an unfamiliar individual.

5. Be aware that the U.S. Government will never request money via wire transfer, cryptocurrency, or gift/prepaid cards.

Growing number of reported fraud losses over five years, 2017-2022

There is a growing number of creative ways scammers are masquerading as: government organizations (like the IRS), finance institutions (like PayPal or your bank), businesses (like Amazon), relatable organizations (like charities), your own family, and tech support.

What are they trying to steal? Either your money or personal information, or both. There should be no reason to give unsolicited contacts from these contacts checks, cash, or gift cards, nor give them access to your computer or personal information at anytime.

Report Suspected Fraud

The FBI advises victims of suspected fraud to report these activities to the FBI Internet Crime Complaint Center (IC3) at www.ic3.gov. When reporting, provide as much detail as possible, including the name of the person or company that contacted you, communication methods used, and bank account information related to the scam.

Fun YouTube Channels to Learn More About Scammers

Here is a few of our favorite YouTubers who investigate, expose (and sometimes bully) scammers that serve to educate viewers about on how some current phone or online scammers operate, including Phantom Hackers. Warning, there is often putrid profanity by scammers in these videos.

1. Scammer Payback - Scam Emails & Fake Websites (2022)

Scammer Payback is one of our top favorites! They make sure to expose as much as possible about the scammers, and when possible, try to stop any real fraud that are in-progress.

2. Kitboga - Crypto (One-year long) Scam Attempt (July 2023)

Kitboga focuses on baiting scammers and wasting their time, one call-center at a time.

3. Scambaiter - Scammers Panic After Recognizing Scambaiter (August 2023) *Profanity warning

Scambaiter's methods are definitely questionable, but they have a proven deep network connection that enables thorough investigation into a targeted call center's networks, operations, location, and personnel. After the expose, Scambaiter does as much as he can to disrupt or destroy as much of the target's operations.