A rapidly growing scam dubbed the “Phantom Hacker” is targeting users of Apple, Android and other platforms, the Federal Bureau of Investigation (FBI) warns.
The scheme exploits trust in banks and other financial institutions, and it has already led to major losses across the country.
Authorities urge the public to exercise caution and stay informed.
How It Works
The fraud begins with a phone call, email or pop-up notification, which impersonates a bank or a government agency.
Scammers claim that a victim’s account has been compromised and urge them to act quickly.
In reality, the supposed solution—transferring funds or installing software—leads directly to the scammer’s control.
The Three-Step Scam
The scam often unfolds in three stages, according to the FBI. First, the victim is contacted by a fake tech support agent or bank representative claiming their account is under threat.
Victims are then pressured to download malicious software, enabling scammers to access their devices remotely.
Next, the victim is directed to transfer funds, supposedly to secure accounts.
Finally, they may be contacted again by someone impersonating a government official, who prompt them to pay more money quickly to resolve the issue.
Prevention Tips and Security Updates
The FBI and cybersecurity experts have provided several strategies to avoid falling prey to such scams:
- Never trust unsolicited calls or messages. Legitimate institutions will not request sensitive information or direct money transfers over the phone.
- Avoid downloading unfamiliar apps or software. Scammers often use fake apps to gain remote access to devices.
- Use official contact channels. Always confirm by calling your bank or agency through verified numbers, not ones provided in the call or message.
Recent software updates, like Google’s new scam-protection feature on Android, aim to improve user security by flagging suspicious calls and preventing unauthorized app installations.
Still, experts say that the best way to avoid being scammed is to be vigilant.
The Damage Done
While precise numbers for total losses caused by the “Phantom Hacker” scam aren’t available, individual cases show the alarming scope of the potential damage.
In Chicago, one victim lost $20,000 after being tricked into transferring her funds to a fraudulent account.
In another instance, a Colorado woman was defrauded of nearly $19,000 in a similar scheme.
Nationwide, the FBI reported a significant rise in cybercrime complaints. Losses attributed to these scams climbed by 20% in 2023 alone.
According to the Federal Trade Commission (FTC), nearly a quarter of scam reports involve monetary losses, with a median individual loss of $500.
The actual figures are likely much higher due to underreporting, since many victims feel embarrassed or unaware of where to seek help.
The FBI continues to investigate the scam’s widespread impact.
Consumers are encouraged to report suspicious activities to the FBI’s Internet Crime Complaint Center at www.ic3.gov.
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