The 'Phantom Hacker' 3-Part Scam That Is Draining Retirement Accounts

NEW YORK — The state's top law enforcement official says that predators are targeting New Yorkers' nest eggs with a complicated scam.

New York Attorney General Letitia James has issued a consumer alert warning New Yorkers of a scam that gives scammers access to bank and retirement accounts. The scam, known as the "Phantom Hacker," tends to occur in three phases, where each phase builds on the last phase to create a convincing scenario for victims, according to the AG.

First, victims receive a text, call, or email claiming that their account was hacked, and they are instructed to contact a customer support phone number. Once they contact the scammers, they are instructed to download a software program that allows the hackers access to their computer. Then, to convince the victims that this is a legitimate process, the victims receive two separate calls from scammers impersonating their bank and a government agency.

"Heartless scammers are stealing people's hard-earned retirement savings that they rely on to pay bills," James said. "I am urging all New Yorkers to beware of this three-phase scam that is made to appear legitimate. Seniors deserve to live comfortably in their retirement years with the savings they worked hard to build over the years. If you or someone you know falls victim to this scam, please contact my office."

Since 2024, scammers using these coordinated attacks have been able to steal over $1 billion from victims who were nearing or over their retirement age, according to the AG's office.

James offered some tips to help New Yorkers avoid being scammed:

• Do not click on unsolicited links provided via text or email.
• Do not call the number provided in a pop-up, text, or email.
• Never give someone you don't know remote access to your computer.
• Never move your money out of your bank account at the urging of someone over the phone.
• If someone claims there is an issue with your bank account, hang up and contact your financial institution by calling the number printed on your bank statement instead.
• Remember, a scam is effective because the scammer creates a circumstance that relies on pressuring the victim into life-altering decisions on the spot and swearing them to secrecy. The best way to combat this is to hang up and contact someone you trust and let them know your situation.

If you or someone you love is a victim of a scam, you can contact the Office of the Attorney General by filing an online complaint or calling 1-800-771-7755.