Tag: tech support

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FTC Settles with Operators of Tech Support Scams

The FTC has announced that the operators of two alleged tech support scams have agreed to settle agency charges that they deceived consumers into believing their computers were infected with viruses and malware, and then charged them hundreds of dollars for unnecessary repairs.

As set forth in the complaints, the defendants allegedly contacted consumers through phone calls or displayed advertisements on their computers designed to resemble pop-up security alerts from Microsoft, Apple or other technology companies. These ads purportedly warned consumers that their computers were infected with viruses, had been hacked, or otherwise compromised, and urged them to immediately call a toll-free number for assistance.

Once consumers called the toll-free number listed on the ads, they were connected to a call center and allegedly pitched by telemarketers who claimed to be affiliated with well-known technology companies such as Microsoft. Consumers were also allegedly informed that in order to diagnose the problem, they had to provide the telemarketers with remote access to their computers.

After gaining access to consumers’ computers, the telemarketers allegedly ran a series of “diagnostic tests” that claimed to show that their computers had major problems requiring immediate repair by one of their “certified technicians.”

Through these high-pressure tactics, as alleged by the Commission, the defendants persuaded consumers to pay hundreds of dollars for unnecessary computer repair services, service plans, anti-virus protection or software, and other products and services. In some cases, the defendants purportedly installed malware on consumers’ computers.

The defendants are permanently banned from advertising, marketing, promoting or selling any tech support product or service under the terms of the settlements (or assisting others to do so). They are also prohibited from collecting or attempting to collect payment for a tech support product or service sold by the defendants, from deceptive telemarketing and misrepresenting their affiliation with another company or entity.

See here for more information on the settlements.

The FTC is showing no signs whatsoever of slowing down when it comes to enforcing the FTC Act. Contact an experienced FTC compliance and defense advocate if your company is the subject of a regulatory investigation or has been named in an enforcement action.

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FTC Pursues Fake Tech Support Scammers

The FTC has shut down a multinational tech support company that they allege are using pop-up ads with loud siren type audio sounds, to alert computer users of false security threats. The alerts prompt the users to call a toll-free number that connects them to overseas telemarketers. These telemarketers then offer, for hundreds of dollars, to connect remotely to the “infected” computer and perform repair services to fix the affected computer.

The company paid marketers for the pop-ups, which falsely claimed that consumers’ computers had been hacked or infected and were in urgent need of repair, the FTC said. Consumers were told to call a toll-free number purportedly associated with Apple, Microsoft or other well-known companies, but the consumers reached the company’s “telemarketing boiler room in India, where they were then subjected to deceptive and high pressure sales tactics,” the complaint says.

The FTC contends that a group of St. Louis registered firms are associated with the overseas tech support. The FTC listed Global Access Technical Support LLC, Source Pundit LLC, Global Smind LLC, VGlobal ITES Pvt. Ltd, Helios Digital Media LLC and as being affiliated in some part with the scam.

An FTC senior public affairs specialist Jay Field states, “The FTC has brought cases against numerous tech support scammers over the last four years.”

The FTC has successfully obtained a court order that forces the listed companies to temporarily shut down its operations, while at the same time freezing its assets. The FTC executes this type of action when it believes that there is a possibility that the companies involved might start moving money and assets to offshore accounts once it finds out that they are being investigated.