The FBI reported that tech support scams have experienced a 40% increase in losses as of August and that these new "phantom hacker" scams pose a serious threat as they are capable of wiping out bank, savings, retirement, and investment accounts.
A recent FBI public service announcement reported that from August 2023 to the same period in 2022, "phantom hacker" scams have seen a nationwide surge with a 40% increase in tech support scams and losses. The FBI did not state the exact amount of financial losses during that period however they did report that half of the victims were over 60 years of age and accounted for 66% of the total financial losses. According to Gregory Nelsen, FBI Cleveland special agent in charge, senior citizens are particularly vulnerable because they are more likely to have more substantial savings than younger people and tend to be "particularly mindful of potential risks to their life savings". Nelsen warned that these scam artists are "cold and calculated" and use the victims' caution against them.
Fraudsters have been known to employ a "phantom hacker" technique that involves multiple layers of deception.First, they masquerade as computer technicians from popular businesses, asserting that the victim has an urgent virus problem and their financial accounts may be targeted by foreign hackers.Afterward, cohorts then impersonate financial institution employees or U.S. officials to bring the victim to believe they need to move their money from vulnerable accounts to purportedly secure ones, purportedly to protect their assets.
"It has been confirmed that there was no foreign hacker involved, and the money is now in the hands of the scammers," the FBI's Cleveland bureau recently declared. Reports filed with the FBI indicated that between January 2023 and June 2023, about 19,000 individuals lost a total of $542 million to tech-support scams. Comparatively, in the year 2022, there had been 33,000 complaints and $807 million in losses.
The Federal Bureau of Investigation (FBI) issued five tips to help consumers protect themselves against scams: avoid clicking suspicious links or attachments in emails or texts; do not contact the phone number provided in a suspicious message; do not download programs suggested by someone unknown; do not allow unknown persons remote control of your computer; and never send money to foreign accounts, cryptocurrency, or gift/prepaid cards that were asked for by a stranger. Don’t forget to read these CNBC PRO articles: a bank offering a 1-year CD rate at an all-time high; a low cost way to mitigate S&P 500 drawdown; investing $1 million over the next decade; a highly profitable industry taking off as the population ages; and Bank of America’s advice regarding the rising prominence of insurance coverage for weight loss drugs.
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