'Phantom hacker' scam steals $1B from seniors' bank and retirement accounts in U.S., AG James says

State officials are warning about a three-tiered scam that has already stolen $1 billion from seniors' bank and retirement accounts nationwide, including in New York State.

New York Attorney General Letitia James said the "phantom hacker," scam is used to make seniors believe their accounts have been hacked. The victims are instructed to contact a fake customer service representative, who gives directions to download software allowing the hackers access to their financial accounts.

The scam targets seniors 60 and older who are nearing retirement age, according to the attorney general’s office.

"Heartless scammers are stealing people’s hard-earned retirement savings that they rely on to pay bills," James said in a statement. "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."

Suffolk County police told Newsday on Wednesday the department’s Financial Crimes Unit has investigated similar scams. Police frequently hold information seminars to warn seniors and the public on steps to avoid being scammed, police said. Victims should contact police.

Nassau County police also have warned of other scams targeting seniors.

The attorney general's office and the FBI warned that the phantom hacker scam generally starts with a call, text, email or pop up window telling victims to call a customer service number and instructions to download the software.

Scammers posing as technical support will ask the victims to open their bank accounts to look for unauthorized charges, but it also allows hackers to determine which accounts have the most funds to target, officials said.

A new caller will claim to be from a bank, warning the victims their accounts were accessed by a foreign hacker. The caller tells victims to move money through wire transfers, cash or cryptocurrency. The scam can last for several days and months, according to the attorney general.

A third caller may also later call claiming to be from a U.S. government agency and send a letter with a fake government insignia if the caller becomes suspicious.

The attorney general’s office warned potential victims to avoid clicking on unknown or suspicious links and not to call any phone numbers in pop-up windows, text messages or emails.

Victims should never give unknown callers access to their computers or bank accounts. Any suspicious calls should be reported to financial institutions or authorities, officials said.

By John Asbury

john.asbury@newsday.comJohnAsbury

John Asbury is a breaking news and general assignment reporter. He has been with Newsday since 2014 and previously worked at The Press-Enterprise in Riverside, California.