There's a new computer scam that's tricked tens of thousands of people into giving up personal information to scammers posing as technical support employees.
The idea is to take advantage of our concerns about computer viruses and malware with the fake tech support worker pretending to have detected a virus then asking for access to our computers to fix a bogus problem -- for a fee.
The scam starts with a phone call, on the other end an individual often from India, poses as a technical support employee with a major company.@
In a recording from the Federal Trade Commission you hear the scammer in action.
He directs the investigator to a standard computer utility area and pretends the messages are evidence of a virus.
The scammer offers to remove this "fake infection" in exchange for access to your computer and up to 450 dollars.
An international investigation turned up thousands of victims in the US and five other countries.
FTC Chairman Jon Leibowitz said, "It's a very serious rip off of consumers."
Frank Torres from Microsoft Corporation said, "Like playing a game of 'whack a mole' - it has criminals finding a new way to deceive people."
A US District Court has ordered a stop to six of these tech support scams, freezing nearly $200,000 in assets, but it's likely the calls will continue.@
If you do get one these cold calls hang up. Never give credit information to a caller offering to fix a computer problem remotely and only use trusted sites or resources for computer assistance.
FEDERAL TRADE COMMISSION NEWS RELEASE:
FTC Halts Massive Tech Support Scams
Tens of Thousands of Consumers Allegedly Tricked Into Paying for Removal of Bogus Viruses and Non-Existent Spyware, and Allowing Scammers to Remotely Access their Computers
The Federal Trade Commission has launched a major international crackdown on tech support scams in which telemarketers masquerade as major computer companies, con consumers into believing that their computers are riddled with viruses, spyware and other malware, and then charge hundreds of dollars to remotely access and "fix" the consumers' computers.
At the request of the FTC, a U.S. District Court Judge has ordered a halt to six alleged tech support scams pending further hearings, and has frozen their assets.
"The FTC has been aggressive - and successful - in its pursuit of tech support scams," said FTC Chairman Jon Leibowitz. "And the tech support scam artists we are talking about today have taken scareware to a whole other level of virtual mayhem."
Chairman Jon Leibowitz announces a major international crackdown on tech support scams at a press conference Oct. 3,2012 at the Federal Trade Commission in Washington, DC.
The FTC charged that the operations - mostly based in India - target English-speaking consumers in the United States, Canada, Australia, Ireland, New Zealand, and the U.K. According to the FTC, five of the six used telemarketing boiler rooms to call consumers. The sixth lured consumers by placing ads with Google which appeared when consumers searched for their computer company's tech support telephone number.
According to the FTC, after getting the consumers on the phone, the telemarketers allegedly claimed they were affiliated with legitimate companies, including Dell, Microsoft, McAfee, and Norton, and told consumers they had detected malware that posed an imminent threat to their computers. To demonstrate the need for immediate help, the scammers directed consumers to a utility area of their computer and falsely claimed that it demonstrated that the computer was infected. The scammers then offered to rid the computer of malware for fees ranging from $49 to $450. When consumers agreed to pay the fee for fixing the "problems," the telemarketers directed them to a website to enter a code or download a software program that allowed the scammers remote access to the consumers' computers. Once the telemarketers took control of the consumers' computers, they "removed" the non-existent malware and downloaded otherwise free programs.
FTC papers filed with the court alleged that the scammers hoped to avoid detection by consumers and law enforcers by using virtual offices that were actually just mail-forwarding facilities, and by using 80 different domain names and 130 different phone numbers.
The FTC charged the defendants with violating the FTC Act, which bars unfair and deceptive commercial practices, as well as the Telemarketing Sales Rule and with illegally calling numbers on the Do Not Call Registry. It asked the court to permanently halt the scams and order restitution for consumers.
The FTC acknowledges and appreciates the support it received from the Australian Communications and Media Authority (ACMA), the Canadian Radio-television and Telecommunications Commission (CRTC), and the United Kingdom's Serious Organised Crime Agency, each of which provided invaluable assistance to the FTC. The CRTC and ACMA also brought administrative actions for violations of their Do Not Call laws. The FTC also acknowledges investigative assistance it received from Microsoft, as well as from other computer companies.@
The FTC cases targeted 14 corporate defendants and 17 individual defendants in 6 legal filings, Pecon Software Ltd., Finmaestros LLC, Zeal IT Solutions Pvt. Ltd., Virtual PC Solutions, Lakshmi Infosoul Services Pvt. Ltd., and PCCare247, Inc., and individual defendants in each of the cases.
The Commission vote to authorize staff to file the complaints was 5-0. The complaints were filed in the U.S. District Court for the Southern District of New York.
NOTE: The Commission authorizes the filing of a complaint when it has "reason to believe" that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendants have actually violated the law. The cases will be decided by the court.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC's online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC's website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.