A new breed of tech support scam, dubbed the "Phantom Hacker" scam, is rapidly spreading, costing victims, especially older adults, hundreds of millions of dollars. This sophisticated scheme uses a three-pronged approach combined with AI-powered social engineering to deceive individuals into transferring their life savings.

Illustration of a phantom hacker at work (Kurt "CyberGuy" Knutsson)

The Three Stages of Deception

The scam unfolds in three distinct phases, each designed to build trust and exploit vulnerabilities. It starts with a seemingly urgent message about a compromised device, prompting the victim to contact "tech support." This "support" then directs the individual to install remote access software, granting the scammers control and access to financial information.

Next, a different scammer impersonates a financial institution representative, warning of unauthorized activity. They advise transferring funds to a supposedly secure account, often via wire transfer, cryptocurrency, or cash deposits. Secrecy is emphasized to prevent "interference" with the investigation.

Finally, a third scammer posing as a U.S. government official reinforces the urgency and legitimacy of the transfer, often sending fabricated documents for added credibility. By the time the victim realizes the deception, the money is often irrecoverable.

Illustration of a phantom hacker at work (Kurt "CyberGuy" Knutsson)

The Role of Artificial Intelligence

Artificial intelligence amplifies the effectiveness of this scam. AI chatbots handle initial interactions, providing convincing and natural-sounding responses. AI-generated deepfake voices mimic bank officials and government representatives, making the impersonations incredibly realistic. AI also crafts sophisticated emails and generates fake documents, further enhancing the scam's credibility.

Illustration of man getting a deepfake scam call (Kurt "CyberGuy" Knutsson)

Protecting Yourself: Seven Essential Steps

1. Disregard unsolicited messages: Ignore suspicious pop-ups, texts, and emails.
2. Employ robust antivirus software: Install reputable antivirus protection on all devices.
3. Verify contact details: Independently confirm phone numbers before calling.
4. Refrain from downloading unknown software: Avoid installing programs from untrusted sources.
5. Never cede device control: Refuse remote access requests from strangers.
6. Question urgent financial warnings: Be wary of pressure to move money quickly.
7. Consider data removal services: Minimize your online footprint by removing personal data from data broker sites.