Two tech support companies have agreed to pay $26 million to settle Federal Trade Commission (FTC) charges that they duped poeple, particularly older adults, into spending tens of millions of dollars for computer repair services under false pretense.
Cyprus-based Restoro Cyprus Limited and Reimage Cyprus Limited allegedly tricked people into signing up for the services after falsely claiming that the user's computers had viruses or other serious problems.
“These companies used scare tactics and lies about threats to consumers’ personal computers to bilk consumers, particularly older consumers, out of tens of millions of dollars,” Samuel Levine, FTC Bureau of Consumer Protection director, said in a statement. “We have taken decisive action to halt this scheme and return money to consumers.”
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
If you believe you were affected by this particular scam, hold tight. The proposed order must be approved by a federal court before it becomes effective. The FTC said it intends to use the $26 million fine to help compensate those affected by the scheme.
Fake pop-up warnings
According to the FTC, the companies "lured or alarmed" consumers by using fake Microsoft Window pop-up warnings indicating that their computers or systems were infected with viruses and urging them to scan their computers to avoid damage. Following the scans, the companies urged people to buy their software, which ranged in price from $27 to $58, to "fix" the issue, the FTC said.
"Regardless of the actual health of the consumers’ computers, the companies’ scans typically identified purported serious issues that needed immediate attention," the agency said.
After purchasing the software, people were then told to call a software activation number, in which sales agents urged people to buy more services for hundreds of dollars for the fix.
How to avoid getting scammed
According to a recent FTC scams report, people lost more than $10 billion through scams in 2023, a 14% increase from the year prior. Another 2021 FTC report found that older adults are targeted, accounting for 40% of all fraud reports in 2020.
The FTC’s scams website provides guidance on how to avoid a scam. Scammers use tactics such as claiming that there is a problem when there isn’t one, and pressuring users to act swiftly to avoid further damage.
If you believe you were scammed, the FTC recommends following a cautious set of protocols and reporting those organizations through this platform.
RELATED CONTENT
-
Eight Ways To Save on Your Next Luxury TripLooking for ways to stretch your retirement dollars? Follow these tips to get a deal on your next vacation.
-
Donating Complex Assets Doesn't Have to Be ComplicatedIf you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
The Four D's That Could Force You to Sell Your BusinessBusiness owners (or their heirs) can be rushed into a sale of their company if they haven't planned for a major change in circumstances — or the four D's.
-
Six Steps for Financial Advisers to Make Compliant Video TestimonialsFollowing these steps in order can help ensure you don't end up breaking any rules or having to redo your work.
-
Could a Golden Visa Be Your Ticket to Retiring Abroad?Trump and DOGE are weighing a U.S. "Gold Card" that would let the wealthy emigrate to the U.S. for a fee. But golden visas have been around for years worldwide. Here's how they work.
-
Struggling with How to Plan a Trip? These Companies Will HelpTravel Plans Sit back, relax and let the professionals handle the logistics.
-
Google Wallet Expands Digital ID Support Across More States and ServicesFrom TSA checkpoints to online verification, we dive into Google Wallet's growing role in digital identification.
-
I Found Out What It Takes for a Family Business to ThriveA handy book and my chat with the chairman of Community Coffee offer some guidance on making your family business a success.
-
Seven Steps to Build Your Billion-Dollar Business TodayThe future might be uncertain, but 'right now' is always a great time to dive in and solve someone else's problems with your new business.
-
Amazon’s Prime Day Faces Tariff Troubles: What Shoppers Need to KnowAmazon Prime Day 2025 is happening this July, but new tariffs and supply chain issues could affect deals and availability. Here’s what shoppers need to know before they load their carts.
