[Tvflguy]

FBI warns seniors about billion-dollar scam draining retirement funds, expert says AI driving it.

FBI warns three-phase scheme uses tech support, bank and government impostors to target elderly victims.

A cybersecurity expert warns that a scam that has been used to drain entire life savings or retirement accounts has become "devastating" for seniors.

FBI Los Angeles on July 15 posted a reminder on X about the Phantom Hacker Scam, which has cost Americans over $1 billion since at least 2024, according to the agency. The FBI said the scam targets senior citizens and warns that victims could lose their "life savings."

The scam operates in three phases: a "tech support impostor," "financial institution impostor" and a "US government impostor."


In the first phase, a tech support impostor will contact victims through text, phone call or email, then direct them to download a program allowing the scammer remote access to their computer. Then, the scammer asks victims to open their financial accounts to "determine whether there have been any unauthorized charges," which the FBI says "is most lucrative for targeting." Afterwards, the scammer will choose an account to target, then tell the victim they will get a call for further instructions from the "fraud department" of the bank hosting their account.

In the second phase, the financial institution impostor will then call the victim and inform them that their funds have been "accessed by a foreign hacker" and must be moved to a "safe" third party account. Victims are then instructed to send the money via wire transfer, cash or cryptocurrency, and are told to send "multiple transactions over a span of days or months."

In the third phase of the scam, the victim could be contacted by someone posing as a U.S. government employee, who prompts the individual to move their funds to an "alias" account for protection.ete Nicoletti, chief information security officer at Check Point, told Fox News Digital the scam has become "devastating" for seniors, and said families need to have discussions with their loved ones to keep them protected. Nicoletti said scammers are now getting personal with some of their tactics, targeting people with specific interests they have. "The family should have dinner-time discussions about this," Nicoletti said. "But, you know, seniors are posting things on Facebook like they're a Corvette collector. The criminals are actually using artificial intelligence to look for those type of characteristics and profiles. And they'll send you an email or a message saying, 'hey, that Corvette that you ordered a month ago is now available. It's, you know, for $500, you can get it…and we'll deliver it to you right away. And of course, the senior goes, 'well, I'm a Corvette collector. Maybe I was forgetful and I didn't know that I ordered that Corvette, or, you know."
Nicoletti said that victims rarely get their money back, even after reporting it stolen to authorities.

"It's devastating," he said. "If [victims report their funds stolen] the same day, there's a chance. I think it's in the single digit percentages. It's, you know, 10, 15%. I've heard, I have heard of people getting their money back. If it delayed beyond that, it's not good. It's gone."

[CarlR33]

This scam is simpler. Trust no one!
Scams impersonating loved ones in trouble are surging, with criminals using Artificial Intelligence (AI) to clone the voices of family members from social media or other recordings. This "AI voice cloning scam," a variation of the traditional grandparent scam, creates a sense of urgency and emotional manipulation by claiming a loved one is in a dire, secret emergency, demanding immediate payment via wire transfer or gift cards. To protect yourself, do not send money or personal information. Instead, hang up and call your loved one directly using a known phone number to verify their identity

[retiredguy123]

I hate to say it, but you need to be pretty stupid to fall for that scam. It is almost like you are asking someone to steal your money.

[oldtimes]

It’s pretty simple really, we do not respond to texts, emails or phone calls from people we don’t know

[justjim]

The Internet is both a blessing (contact schoolmates, distance relatives, etc.) and a curse at the same time. Proceed with due diligence and caution.

[Bill14564]

Originally Posted by retiredguy123

I hate to say it, but you need to be pretty stupid to fall for that scam. It is almost like you are asking someone to steal your money.

Often times the difference between a sophisticated scam and a stupid victim is whether you are the one who fell for it.

Different versions of these imposter scams have been going on for years. They must be lucrative or the scammers would have moved on to something different. The solution is almost always the same: Don't accept unsolicited assistance and always contact the (bank, police, fbi, credit card company, amazon, etc) through a number you found yourself.

What I wonder is why, since they have been around so long, these scams still work? The seniors/retirees today were the young people of yesterday who warned their parents against these scams. What changed that they are now falling victim to the same thing?

[Caymus]

I am now getting "job offers" by text. Are they real?

[oldtimes]

Originally Posted by Caymus

I am now getting "job offers" by text. Are they real?

You mean work from home, part time and make $50000 a year? Absolutely 😂😂😂

[retiredguy123]

The easiest thing you can do is to keep your money in a reputable investment company like Fidelity, Vanguard, or Schwab, and to set up a "two-step" verification system to log in. That way, even if a scammer gets access to your computer or to your username and password, they cannot access your account. Obviously, if an account holder removes money from their own account and sends it to a scammer, no one can help them.

[Aces4]

Originally Posted by Bill14564

What I wonder is why, since they have been around so long, these scams still work? The seniors/retirees today were the young people of yesterday who warned their parents against these scams. What changed that they are now falling victim to the same thing?

I condensed your response to put the focus on your last question. I know of two elderly people right now being scammed, they've been informed but they don't want to stop. One a widow, no children and is seeking a man because she is sooo lonely and has so far gone through two romantic situations, definitely scammers which friends and family finally destroyed her resolve to continue. She is now dating some who purports to have "lots of money" and heaven knows where this one will go. The next is an elderly woman with little money and someone is offering to help her with her accounts. The business that caught the scam advised the woman immediately that she was being scammed. She declared no, this person was so nice and kind. The business convinced the woman to call the police department while she was there. The police said, yep.. sounds like scam and wanted to meet with the woman when she finished her errands. She said not today, she was too busy.. The business knew she wasn't going to talk with the police. The business then suggested while she was there, they would contact her son and he could help her. She started crying and said she didn't want him to know and that this person scamming her was so nice. At that point she left. We know what continued to happen to that lady. To answer your question, scamming is most apt to happen to elderly, lonely people looking for companionship and kindness. It's a very sad picture.

[ThirdOfFive]

Originally Posted by Bill14564

Often times the difference between a sophisticated scam and a stupid victim is whether you are the one who fell for it.

Different versions of these imposter scams have been going on for years. They must be lucrative or the scammers would have moved on to something different. The solution is almost always the same: Don't accept unsolicited assistance and always contact the (bank, police, fbi, credit card company, amazon, etc) through a number you found yourself.

What I wonder is why, since they have been around so long, these scams still work? The seniors/retirees today were the young people of yesterday who warned their parents against these scams. What changed that they are now falling victim to the same thing?

Why? Who really knows, unless it is to say that the scams are far more involved and targeted today (no AI a generation ago simulating our granddaughter's voice) and some retirees, even if not diagnosed, are often experiencing diminishing mental functioning.

But that's the quick answer (or one of them, anyway). If people want to get a better understanding, Psychology Today has a great article on this topic; "Why We Get Conned and How to Avoid It" (Daniel J. Simons, Ph.D and Christopher Chabris, Ph.D.) apa dot org. It is a transcript of a podcast from 2023 and is quite long, but does a really good job of explaining why people fall for what they do.

[Topspinmo]

Originally Posted by justjim

The Internet is both a blessing (contact schoolmates, distance relatives, etc.) and a curse at the same time. Proceed with due diligence and caution.

Ever notice they rarely EVER catch scammers EVER!

[UpNorth]

Anyone asking you to link your computer with theirs using "one desk" or something similar is up to no good.

[ThirdOfFive]

Originally Posted by Topspinmo

Ever notice they rarely EVER catch scammers EVER!

The Villages used to distribute a list of area codes of known scammers (maybe they still do; I haven't seen one in awhile). Most of them were offshore: Aruba, St. Kitt's, Jamaica and the like, plus Eastern Europe. I don't think the authorities can really do much more than that if the scams are originating on foreign soil.

[golfing eagles]

Originally Posted by UpNorth

Anyone asking you to link your computer with theirs using "one desk" or something similar is up to no good.

I would consider it an online IQ test. If you lose even a penny, you fail