Phantom hacker scams, also known as phantom scams, have surged in recent years.
These are elaborate frauds in which criminals convince victims their money or computer has been compromised by a hacker. The scammer then pushes the victim to move their savings into a supposedly "safe" account, which is in fact controlled by the criminals themselves.
The rise of artificial intelligence, online banking and social media has fuelled the trend — more ways to pay and receive money mean more entry points for scammers to exploit.
How phantom hacker scams work
Some of the most common phantom hacker scams work in a few stages. The first one is tech support.
This usually involves a pop-up screen warning, text or call claiming that your computer or device has a virus. When you call the number provided, a person pretending to be tech support can ask you to download remote-access software.
The next phase is the fake bank alert. Another person might call you, claiming that your accounts are being hacked. Scammers may often spoof caller ID information, so you may believe that the call is from a legitimate phone number.
They may say that immediate action needs to be taken to protect your account and funds, so you need to log in right now to check your balance.
However, since they now have remote access to your device, they can watch you log in and gather your details.
The final phase is the government imposter one. This can involve a third person calling you, claiming to be from a government or law enforcement agency like the FBI or Federal Reserve.
They may pressure you to move your money into a supposedly "safe" account or direct it towards things like cryptocurrency and gold bars in order to protect it.
Some variations ask victims to download an app that supposedly speeds up fund transfers. In reality, this hands scammers remote access to the device, letting them steal money, often entire life savings, directly from the account.
The methods vary, but the underlying tactic is nearly always the same: create a sense of urgency and push victims into acting out of panic.
How to protect yourself
According to TEG Federal Credit Union, the best defence is simple: never trust unsolicited calls, texts or pop-ups about your bank account or computer. Hang up immediately if you receive one.
Never download remote-viewing software or apps at the request of someone who contacted you out of the blue.
If you suspect a scam, call your bank directly using the number on its website or on the back of your card.
No legitimate bank, tech company or government agency will ever ask you to move your savings into a "safe" account or buy gold or cryptocurrency.
How are phantom hacker scams different from phantom debt?
Unlike phantom hacker scams, which typically rely on gaining access to a victim’s money or bank account, phantom debt or zombie debt is a different type of scam. This involves scammers attempting to get victims to pay fake or expired debts.
While this was previously done through badly-written emails or unconvincing cold calls, today, scammers rely on large language models (LLMs) to write perfectly localised and highly convincing legal threats.
These debts might already have been paid off, discharged in bankruptcy or artificially inflated by shady operators.
Scammers usually pose as debt collectors and attempt to use aggressive language, fake threats of arrest or intimidation to scare victims into paying immediately.
In many cases, they may also use confusing language to explain how a debt that was previously thought to be paid off or cleared is still owed, while continuing to use intimidation and panic creation tactics to prevent victims from further digging into the mechanics.
This can especially be done to senior victims.
Scammers also leverage automated AI agents to scrape public information, build a profile on a target and use audio clips to clone voices, posing as law enforcement or bank officials.
Sometimes they may ask for crypto payments or wire transfers to settle these phantom debts.
Similar to phantom hacker scams, consumers should immediately hang up while receiving these calls, along with locking down their information and freezing payments.
They can also demand a validation letter, which real collectors in many jurisdictions are obliged to send, or block and report them.
