Bank – FBI Warns Seniors About Billion-Dollar Scam Draining Retirement Funds

Cybersecurity Expert Says AI Is Fueling Sophisticated Bank Fraud Targeting Elderly

The FBI is sounding the alarm on a billion-dollar scheme that is devastating seniors by wiping out retirement accounts through a three-phase scam involving tech support, bank impostors, and government impersonators.

On July 15, the FBI Los Angeles division issued a warning on X (formerly Twitter) about the Phantom Hacker Scam, which has cost Americans more than $1 billion since 2024. The agency specifically cautioned that elderly citizens are the primary targets, with many victims losing their entire life savings.

How the Scam Works

The fraud is executed in three calculated stages, each designed to build trust and extract money from victims:

1. Tech Support Impostor Phase
   Scammers contact seniors through phone calls, texts, or emails, pretending to be from a reputable company’s tech support. Victims are then tricked into downloading software that gives criminals remote access to their computers. Once inside, scammers instruct them to check their bank accounts for “unauthorized charges,” identifying which accounts to exploit.
2. Financial Institution Impostor Phase
   Victims are then contacted by a scammer posing as a bank fraud department employee. The impostor warns that the victim’s money has been “compromised by foreign hackers” and must be transferred to a “safe account.” Seniors are persuaded to send their money via wire transfers, cryptocurrency, or cash, often in multiple transactions over weeks or months.
3. Government Impostor Phase
   Finally, a fake U.S. government official may reach out, urging victims to move their remaining funds to an “alias account” for additional protection—further stripping them of their savings.

Experts Warn AI Is Supercharging the Scam

Cybersecurity expert Frank Nicoletti said criminals are now using artificial intelligence (AI) to scan seniors’ online activity and social media profiles, making their schemes more convincing.

He explained: “Seniors post personal interests online, like being a Corvette collector. Scammers use AI to find this and send messages such as, ‘Your Corvette is ready for delivery.’ The victim, thinking it’s real, falls into the trap.”

Nicoletti added that very few seniors recover stolen money: “If reported the same day, there’s maybe a 10 to 15% chance of getting it back. But once the funds move out of the bank accounts, it’s usually gone.”

FBI’s Advice to Families

The FBI recommends that families regularly discuss fraud risks with seniors, warning them never to trust unsolicited tech support calls, suspicious emails, or urgent bank transfer requests.

Nicoletti emphasized that open family conversations can help prevent scams: “Dinner-time discussions about fraud can save seniors from financial ruin.”

👉 Key takeaway: Seniors must remain cautious, verify with their bank directly before moving funds, and report suspicious activity immediately to law enforcement.