FTC Halts Tech Support Scams | North Country Gazette

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.??

The FTC charged that the operations ? mostly based inIndia? 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 theUnited 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.? ??10-6-12

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Source: http://www.northcountrygazette.org/2012/10/06/tech_scams/

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