AI-Driven Scams Are Draining Retirement Funds

A billion-dollar scam, referred to as The Phantom Hacker Scam, is cleaning out the retirement funds of seniors across America, and the FBI has issued a red alert.

Active since at least 2024, The Phantom Hacker Scam uses a three-pronged phishing attack to drain your bank account. In an interview with Fox News Digital, cybersecurity expert Pete Nicoletti warns that scammers use artificial intelligence to identify personal interests (especially older users on Facebook) to gain access to your life and accounts. For example, he cites a potential victim who is an avid car collector.

“[Scammers] 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,” Nicoletti told the outlet. “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.”

Related: Instagram Head Was the Victim of an ‘Experienced a Sophisticated Phishing Attack’

Here’s how it works. First, a tech support impostor gains remote access to victims’ computers by phishing, and then asks for access to their accounts to “determine whether there have been any unauthorized charges,” reports the FBI. And, of course, they always find these unauthorized charges and tell them to await instructions from the “fraud department” of their financial institution.

The FBI reminds the public to beware of Phantom Hacker Scams where cyber criminals use a 3 prong attack against victims using tech support, financial institution, & government impersonation scams simultaneously. Learn more here: https://t.co/c5V3OUEtZU #TechTuesday pic.twitter.com/H9T0EqNZlF

— FBI Los Angeles (@FBILosAngeles) July 15, 2025

The second phase has a bogus bank representative calling the victim and instructing them to move their funds to a third-party account where it will be “safe.”

The third and final phase of the scam has someone pretending to be a U.S. government employee calling and instructing the victim to move their funds to an “alias” account for complete protection. The move to an alias account makes it easy for scammers to access the funds and harder for law enforcement to trace them.

Related: AI Cloning Hoax Can Copy Your Voice in 3 Seconds—and It’s Emptying Bank Accounts. Here’s How to Protect Yourself.

The FBI and cybersecurity experts say these are the best steps you can take to protect loved ones from falling victim:

• Discuss online scams regularly and openly with older family members to raise awareness and lower vulnerability.

• Educate loved ones to never grant remote computer access to unsolicited contacts, and to verify calls or emails from “banks” or “government agencies” before acting.

Related: A New Breed of Digital Sabotage Is Here