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 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.
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 defendants are charged 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. The FTC asked the court to permanently halt the scams and order restitution for consumers.
The FTC acknowledged 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, as well as investigative assistance it received from Microsoft and 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 complaints were filed in the U.S. District Court for the Southern District of New York.