Richard B. Newman
Member
The Federal Trade Commission, along with federal, state and international law enforcement partners, have announced “Operation Tech Trap,” a nationwide and international crackdown on tech support scams that deceive consumers into believing their computers are infected with viruses and malware, and then charge them hundreds of dollars for unnecessary repairs.
“Tech support scams prey on consumers’ legitimate concerns about malware, viruses and other cyber threats,” said Tom Pahl, Acting Director of the FTC’s Bureau of Consumer Protection. “The FTC is proud to work with federal, state and international partners to take down these scams, and help consumers learn how they can safeguard their computers against real cybersecurity threats.”
“Tech support scams prey on people’s fear of losing important work, family photos or sensitive identification information. Using that fear scammers trick thousands of consumers into paying millions of dollars to fix problems that never existed,” said Florida Attorney General Pam Bondi, who appeared at a news conference in Tampa, Florida with Pahl. “These scams will not be tolerated in Florida and that is why we are bringing more cases, against more tech support scammers than any other state in the country—in an effort to protect consumers and recover money for victims.”
Sixteen actions have been announced, including complaints, settlements, indictments and guilty pleas. According to the Federal Trade Commission, this brings to 29 the number of law enforcement actions brought by Operation Tech Trap partners in the last year to stop tech support scams.
According to officials, most of the scammers targeted in Operation Tech Trap followed the same pattern of misconduct by causing consumers’ computers to display advertisements deliberately designed to resemble pop-up security alerts from technology companies like Microsoft or Apple.
The FTC alleges that the advertisements represented to consumers that their computers were infected with viruses or were being hacked. The pop-up messages urged consumers to immediately call a toll-free number for technical support and assistance.
Authorities also allege:
As part of Operation Tech Trap, the FTC and its state partners also announced settlements against two tech support operations that they had previously sued for allegedly deceiving consumers.
In addition to the FTC and state cases, Operation Tech Trap includes federal criminal charges against a number of individuals.
The Federal Trade Commission also has been working with authorities in India to halt tech support scams operating in that country.
Contact an advertising compliance and defense lawyer if you are an online marketer that is the subject of an FTC or State AG investigation or enforcement action, or if you are interested in implementing preventative network compliance controls in order to fend off unwanted regulatory attention.
Follow the author on Twitter @FTC Defense Lawyer and on LinkedIn at Richard B. Newman.
ADVERTISING MATERIAL. These materials are provided for informational purposes only and are not to be considered legal advice, nor do they create a lawyer-client relationship. No person should act or rely on any information in this article without seeking the advice of an attorney. Information on previous case results does not guarantee a similar future result. Hinch Newman LLP | 40 Wall St., 35thFloor, New York, NY 10005 | (212) 756-8777.
“Tech support scams prey on consumers’ legitimate concerns about malware, viruses and other cyber threats,” said Tom Pahl, Acting Director of the FTC’s Bureau of Consumer Protection. “The FTC is proud to work with federal, state and international partners to take down these scams, and help consumers learn how they can safeguard their computers against real cybersecurity threats.”
“Tech support scams prey on people’s fear of losing important work, family photos or sensitive identification information. Using that fear scammers trick thousands of consumers into paying millions of dollars to fix problems that never existed,” said Florida Attorney General Pam Bondi, who appeared at a news conference in Tampa, Florida with Pahl. “These scams will not be tolerated in Florida and that is why we are bringing more cases, against more tech support scammers than any other state in the country—in an effort to protect consumers and recover money for victims.”
Sixteen actions have been announced, including complaints, settlements, indictments and guilty pleas. According to the Federal Trade Commission, this brings to 29 the number of law enforcement actions brought by Operation Tech Trap partners in the last year to stop tech support scams.
According to officials, most of the scammers targeted in Operation Tech Trap followed the same pattern of misconduct by causing consumers’ computers to display advertisements deliberately designed to resemble pop-up security alerts from technology companies like Microsoft or Apple.
The FTC alleges that the advertisements represented to consumers that their computers were infected with viruses or were being hacked. The pop-up messages urged consumers to immediately call a toll-free number for technical support and assistance.
Authorities also allege:
- Some of the pop-up ads included a countdown clock that purported to indicate the amount of time remaining before the computer hard drive would be deleted
- Consumers that phoned the toll-free number were connected to a call center and pitched by telemarketers who claimed to be affiliated with well-known technology companies such as Microsoft or Apple
- Consumers were informed that in order to diagnose the problem, the telemarketers needed to be given remote access to their computer
- After gaining access, the telemarketers purported to run “diagnostic tests” that revealed problems requiring immediate repair by a “certified technicians”
- Consumers were persuaded to pay hundreds of dollars for unnecessary computer repair services, service plans, anti-virus protection or software, and other products and services
As part of Operation Tech Trap, the FTC and its state partners also announced settlements against two tech support operations that they had previously sued for allegedly deceiving consumers.
In addition to the FTC and state cases, Operation Tech Trap includes federal criminal charges against a number of individuals.
The Federal Trade Commission also has been working with authorities in India to halt tech support scams operating in that country.
Contact an advertising compliance and defense lawyer if you are an online marketer that is the subject of an FTC or State AG investigation or enforcement action, or if you are interested in implementing preventative network compliance controls in order to fend off unwanted regulatory attention.
Follow the author on Twitter @FTC Defense Lawyer and on LinkedIn at Richard B. Newman.
ADVERTISING MATERIAL. These materials are provided for informational purposes only and are not to be considered legal advice, nor do they create a lawyer-client relationship. No person should act or rely on any information in this article without seeking the advice of an attorney. Information on previous case results does not guarantee a similar future result. Hinch Newman LLP | 40 Wall St., 35thFloor, New York, NY 10005 | (212) 756-8777.
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