- Randy Hutchinson is president and CEO of the Better Business Bureau of the Mid-South.
Two Cyprus-based tech support companies have agreed to pay $26 million to settle charges brought by the Federal Trade Commission that they deceived consumers into paying for unnecessary computer repair services. Restoro Cyprus Limited and Reimage Cyprus Limited stole tens of millions of dollars from victims, mostly elderly people.
Fake Microsoft pop-up ads were used to tell victims that their computers were infected with a virus and urged them to “scan” their computers to prevent further damage. “Your system is infected with 3 viruses,” one message read. The company's scans identified serious issues on healthy computers and urged consumers to purchase software from the company to fix the issues and remove the suspected virus or malware. The software cost between $27 and $58.
Consumers who purchased the software were given a telephone number to activate it. Restoro and Reimage telemarketers who were given access to consumers' computers routinely claimed the problems were too serious to be fixed by new software alone, convincing many consumers to pay hundreds of dollars extra to get help from a technician.
Other tech support scammers call their victims claiming to be technicians from well-known companies. The scammers say they have found a problem with the consumer's computer and need access to it to run diagnostic tests. Naturally, the scammers find a serious problem that the consumer will have to pay to have repaired.
Most of the fraud victims were over 60 years old.
When consumers search online for help resolving their computer problems, they may find listings for scammers, sometimes paid ads, with phone numbers to call for assistance.
If you call that number, they won't solve the problem you actually have, but will charge you to solve a problem that doesn't exist.
In the first six months of 2023, the FBI's Internet Crime Complaint Center received 19,000 complaints about tech support scams, resulting in estimated losses of more than $542 million.
By August, losses were already 40% higher than the total losses for 2022. Nearly 50% of the victims were over 60 years old, and some lost all their assets in bank, savings, retirement and investment accounts.
Americans use health apps every dayThey have a responsibility to protect the data
In filing the lawsuit against Restoro and Reimage, FTC Bureau of Consumer Protection Director Samuel Levine said: “These companies used scare tactics and lies about threats to consumers' computers to defraud consumers, especially seniors, out of tens of millions of dollars. We took decisive action to stop this scheme and provide refunds to consumers.”
4 tips to avoid being duped by scammers
How to avoid technical support scams:
- Legitimate technology companies will not call, email, or text you to tell you that there is a problem with your computer.
- Never click on any links or call any phone numbers in pop-up warnings: no legitimate tech company will contact you unexpectedly asking you to do such things.
- If you're asked to pay for a service with a wire transfer, gift card, prepaid card, cash reload card, money transfer app, or cryptocurrency, know that it's almost certainly a scam. Scammers prefer these types of payments because they're nearly impossible to reverse.
- If you need help resolving a problem, ask for help from people you know and trust. Many software companies offer online or telephone support services (check their contact information). Stores that sell computer equipment usually offer in-person technical support.
Randy Hutchinson is president and CEO of the Better Business Bureau of the Mid-South.
