The FBI issued a public warning about a scam that is draining retirement funds and that, according to authorities, has resulted in losses of more than $1 billion since 2024. The case has attracted attention because it combines classic fraud techniques with modern artificial intelligence tools to identify, gain the trust of, and empty the accounts of seniors.

How do the three phases work? of the scam?

Authorities describe the fraud as a three-stage scheme—each with a specific role in the ultimate goal: moving the victim's money into accounts controlled by the criminals. The FBI and cybersecurity experts explain that the steps are designed to look like legitimate tech support, bank, and finally, government agency procedures.

1. The Hook: Tech Support Imposters

In the first stage, scammers contact the victim by phone, text, or email, posing as tech support. Their goal is to get the person to download a program that grants remote access to the computer or reveal credentials. With that door open, the attackers can view applications, emails, and bank transactions in real time. From there, they ask the victim to access their accounts "to verify unauthorized charges" and thus choose the most profitable account to empty. This is the phase where trust is established and the access that will enable the subsequent phases is installed.

2. The Fake Bank Call

Once the attacker has access and identified the target account, the second phase arrives: a supposed bank representative calls and claims that the funds have been compromised by a “foreign hacker” or fraudulent activity. Under this guise, they instruct the victim to transfer their money to a “temporary” or “safe” account for protection. Instructions include sending wire transfers, cash, or even cryptocurrency, and in some cases, they ask for multiple transactions over days or weeks to avoid alerts.The distance between the victim and the money makes it easier for the funds to disappear beyond recovery.

3. The Government Disguise That Closes the Loop

In the third phase, scammers complete the deception by pretending to be government officials—for example, from a security agency or the benefits administration—and order the funds to be moved to an "alias account" for their supposed protection. This final step exploits the perceived authority of official agencies to prevent the victim from questioning the orders received and thus consolidate the loss. In many cases, victims follow instructions because they believe they are cooperating with legal or protection processes.

Where Does Artificial Intelligence Come In?

Experts explain that AI is amplifying the effectiveness of the fraud: it helps scammers identify older people with specific interests (for example, collections, hobbies, or other public leads), generates convincing messages, and personalizes calls or emails that appear authentic.

With these tools, it's easier to create plausible pretexts—"your Corvette is ready to ship" or "we detected activity on your account"—that lower the victim's defenses. In addition, AI can automate the creation of fake materials (emails, call scripts) and escalate the operation.

What families and older users can do

Talking about the topic at home is a basic but powerful measure: experts recommend discussing with older adults how to identify signs of a scam and agreeing that any unusual requests for transfers or software installation should be consulted with a trusted family member first. Do not download software or allow remote access to strangers; be wary of calls asking to move funds "for their protection"; and immediately notify the bank if fraud is suspected. Finally, reporting to the authorities as soon as possible increases the chance of recovering funds, although the return rate drops significantly over time.

The combination of social engineering techniques with AI's ability to produce hyper-personalized messages makes this type of scam a particularly dangerous threat for retirees and people with little digital experience. Prevention and family education remain the most effective barriers to this rapidly evolving threat.