Ethical Hacking News
The FTC's $25.5 Million Refund Program: A Victory for Victims of Tech Support Scammers
The FTC is distributing over $25.5 million in refunds to consumers deceived by tech support scammers. Two Cyprus-based companies, Restoro and Reimage, have been accused of operating a deceptive business model that relies on classic tech support scam tactics. The FTC alleged that these companies used scare tactics and lies about threats to consumers' personal computers to bilk them out of tens of millions of dollars. Restoro and Reimage agreed to pay $26 million as part of a settlement with the FTC, and were barred from misrepresenting their services in the future. The total amount lost to online scammers in 2024 was over $12.5 billion, representing an increase of $2.5 billion compared to 2023.
The Federal Trade Commission (FTC) has announced a significant refund program aimed at providing financial compensation to consumers who were deceived by tech support scammers. The FTC is distributing over $25.5 million in refunds, with each individual receiving an average payment of $34.
At the center of this operation are two Cyprus-based companies, Restoro and Reimage, which have been accused of operating a deceptive business model that relies on classic tech support scam tactics. According to the FTC, these companies used scare tactics and lies about threats to consumers' personal computers to bilk consumers out of tens of millions of dollars.
The FTC alleged that Restoro and Reimage operated as two divisions of the same company, with fake Microsoft Windows pop-ups warning users that their computers were infected with viruses and urging them to run a scan to "avoid more damage." Despite the actual state of the system, these scans always identified serious issues that supposedly required immediate attention.
The average payments made following the initial scam ranged between $27 and $58, although follow-up calls would attempt to re-victimize those who already showed they could be tricked once. In one notable instance, an undercover federal agent was targeted by scammers, who attempted to fleece them out of additional repair services costing up to $500.
The FTC has taken decisive action to halt this scheme and return money to consumers. As part of a settlement with the companies, Restoro and Reimage agreed to pay $26 million and were barred from misrepresenting their services in the future.
This case highlights the tactics used by tech support scammers to deceive consumers and exploit vulnerabilities in computer systems. The FTC's actions serve as a reminder for consumers to be cautious when dealing with unsolicited calls or messages claiming to offer technical support, and to never give out sensitive information without verifying the authenticity of the request.
In addition to this refund program, the FTC has released its review of all things scammy in 2024, which reveals that billions of dollars were lost to online miscreants. The total amount lost was over $12.5 billion, accounting for various types of scams. This marks an increase of $2.5 billion compared to 2023.
Tech support scams have declined in prominence, but they still ranked as the 22nd most reported scam type in 2024, with 24,311 complaints filed - representing 0.38 percent of all reports. The most common crimes were imposter scams, where fraudsters impersonate individuals or legitimate organizations to deceive victims. Around one in five people targeted by these scammers lost money, with a median loss of $800.
The FTC's actions serve as a warning to companies that operate in the tech support space and may be using deceptive tactics to exploit consumers. As technology continues to evolve, it is essential for regulators and law enforcement agencies to stay vigilant and take proactive measures to prevent these types of scams from occurring.
In conclusion, the FTC's refund program for victims of tech support scammers serves as a significant step towards holding these companies accountable for their actions. By providing financial compensation and taking decisive action against Restoro and Reimage, the FTC has demonstrated its commitment to protecting consumers from deceptive business practices.
FTC Scam Refunds: A $25.5 Million Windfall for Victims of Tech Support Scammers
Related Information:
https://www.ethicalhackingnews.com/articles/FTC-Scam-Refunds-A-255-Million-Windfall-for-Victims-of-Tech-Support-Scammers-ehn.shtml
https://go.theregister.com/feed/www.theregister.com/2025/03/11/ftcs_255m_scam_refund/
Published: Tue Mar 11 12:06:22 2025 by llama3.2 3B Q4_K_M
