The Phantom Hacker Scam: A Three-Step Scam Designed to Drain Your Bank Account

Since it began in 2023, the Phantom Hacker Scam has amounted in $542 million in losses, according to the Federal Bureau of Investigation’s Internet Crime Complaint Center. Sixty-six percent of the total losses were to victims over the age of 60, but you don’t need to be a senior citizen to fall victim.

The Phantom Hacker Scam — a sophisticated three-step scam — starts with a website alert, text message, or phone call and transitions to a “bank representative” before ending with a “government official”. Seems like a lot of work to steal your money, right? Wrong!

How It Works

  1. The Tech Support Imposter: In the first step, a scammer impersonates a customer support representative for a legitimate technology company such as Microsoft or McAfee by initiating contact through a phone call, text message, email, or computer pop-up window alerting you that there is a virus in your computer and you need to call a specific phone number for assistance.

When you call the number, you are instructed to download a software program that allows the scammer to gain remote access to your computer. The scammer then pretends to run a virus scan on your computer and will request you open your financial accounts to determine whether they have unauthorized charges. Before hanging up, the scammer will let you know your bank’s Fraud Department will be reaching out to you with further instructions. 

  1. The Financial Institution Imposter: The second step of the scam involves a scammer posing as a bank representative. You are falsely informed that your computer and financial accounts have been accessed by a foreign hacker and you must move your money to a “safe” third party account, such as an account with the Federal Reserve or another U.S. Government agency.

You are asked to wire transfer money or wire conversion to cryptocurrency directly to an overseas recipient. The scammer will tell you not to tell anyone why you are wiring money and might be instructed to make several wire transfers over a period of time.

  1. The U.S. Government Imposter: In this final step of the scam, the fraudster contacts you posing as the Federal Reserve or another U.S. Government agency. If you show suspicion, the fraudster might send you an email or letter on what appears to be official U.S. Government letterhead to help legitimize the scam. The fraudster will continue to tell you your funds are “unsafe” and you must move it for your protection.

 Tips to Protect Yourself

Scammers can seem very convincing. Their sense of urgency can instill panic allowing you to not think rationally in the moment. The easiest way not to fall victim to a scam is:

  • DO NOT click on unsolicited website pop-ups, links sent via text message, email links, or attachments.
  • DO NOT call the telephone number provided in the website pop-up, text message, or email links.
  • DO NOT download software at the request of an unknown individual who contacted you.
  • DO NOT allow an unknown individual who contacted you to have control of your computer.
  • KNOW that the U.S. Government will never request you send money to them via wire transfer or cryptocurrency.

As your community bank, we are here to be your first line of defense against fraudulent schemes.

If you discover fraud on your account during Customer Care Center hours (M-F, 8 am-7 pm; Sat 8 am-2 pm), contact our Customer Care Team to secure your accounts. You may need to visit your local NexTier Bank Office to complete any dispute forms.

If you discover fraud on your account after Customer Care Center hours, log into CardBoss and turn your card off. This can also be done during Customer Care Center hours to secure your account faster. If you are not enrolled in CardBoss, you can call the number on the back of your debit card to make it inactive.

By filling out a Debit Card Help Form online, it will let a member of the NexTier Bank support team know to reach out to you at the opening of business the next day.

NexTier Bank encourages all fraud victims to also report fraud to the Federal Trade Commission (FTC), the Credit Bureau, and your local police department. Here is a list of resources to help you file these reports:

  • Report fraud scams to the Federal Trade Commission (FTC) online at: https://reportfraud.ftc.gov/ or by phone at 1.877.382.4357 (9 am to 8 pm EST).
  • Report identity theft to the Federal Trade Commission (FTC) online at IdentityTheft.gov or by phone at 1.877.438.4338 (9 am to 8 pm EST). Credit Bureau Contact Information for Free Resources: https://www.identitytheft.gov/CreditBureauContacts
  • Contact your local law enforcement to file a police report. They will be able to collect information on fraud scams happening in your area.