Ethical Hacking News
The Federal Trade Commission (FTC) has announced a significant victory against tech support scammers, distributing over $25.5 million in refunds to consumers deceived by misleading computer repair services. The scam operation allegedly started at least in 2018 and targeted consumers with fake Microsoft Windows pop-ups warning them that their computers were infected with viruses. The FTC's efforts against these types of scams are an important step in protecting consumers from these types of schemes, highlighting the need for ongoing vigilance and proactive measures to prevent such activities.
The Federal Trade Commission (FTC) has distributed over $25.5 million in refunds to consumers deceived by misleading computer repair services.The refunds average about $34 per person and were the result of a settlement between the FTC and two Cyprus-based companies, Restoro and Reimage.The companies used scare tactics and lies to bilk consumers out of tens of millions of dollars, with an operation allegedly starting in 2018.The FTC's complaint alleges that Restoro and Reimage operated a business model that targeted consumers with fake Microsoft Windows pop-ups.The companies were barred from misrepresenting their services in the future as part of a settlement with the FTC.The FTC's recovery and return of more than $337 million to consumers nationwide is a significant milestone for the agency.
The Federal Trade Commission (FTC) has announced a significant victory against tech support scammers, distributing over $25.5 million in refunds to consumers deceived by misleading computer repair services. The refunds average about $34 per person and are the result of a settlement between the FTC and two Cyprus-based companies, Restoro and Reimage, which were accused of operating a deceptive business that relied on classic tech support scam tactics.
According to the FTC, the companies used scare tactics and lies about threats to consumers' personal computers to bilk consumers out of tens of millions of dollars. The operation allegedly started at least in 2018 and was tracked by credit card issuers and payment processors over fraudulent activity for some time. Court documents suggest that the two companies were being monitored by law enforcement agencies as part of an ongoing investigation into their activities.
The FTC's complaint alleges that Restoro and Reimage operated a business model that targeted consumers with fake Microsoft Windows pop-ups warning them that their computers were infected with viruses and urging them to run a scan to "avoid more damage." Regardless of the actual state of the system, these scans always identified serious issues that supposedly required immediate attention. The companies allegedly made significant payments following the initial scam, ranging between $27 and $58, although follow-up calls would attempt to re-victimize those who already showed they could be tricked once.
In addition to the refunds, the FTC has also taken steps to prevent similar scams from occurring in the future. 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. The FTC's director of the Bureau of Consumer Protection, Samuel Levine, stated that the agency had taken decisive action to halt this scheme and return money to consumers.
The FTC's recovery and return of more than $337 million to consumers nationwide through enforcement actions in 2024 is a significant milestone for the agency. While tech support scams have declined in prominence, they ranked as the 22nd most reported scam type in 2024, with 24,311 complaints filed - representing 0.38 percent of all reports.
In terms of monetary losses, the FTC reported that consumers lost over $12.5 billion to online miscreants last year, accounting for all different kinds of scams. That's $2.5 billion more than in 2023. The most common crimes, according to the reports made to the FTC, were imposter scams - in which 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 efforts against tech support scammers are an important step in protecting consumers from these types of schemes. As technology continues to evolve and new scams emerge, it is crucial that law enforcement agencies and regulatory bodies like the FTC remain vigilant and take proactive steps to prevent these types of activities.
Related Information:
https://www.ethicalhackingnews.com/articles/The-Federal-Trade-Commissions-255-Million-Scam-Refund-A-Victory-Against-Tech-Support-Scammers-ehn.shtml
https://go.theregister.com/feed/www.theregister.com/2025/03/11/ftcs_255m_scam_refund/
https://www.ftc.gov/enforcement/refunds
https://forums.theregister.com/forum/all/2025/03/11/ftcs_255m_scam_refund/
Published: Wed Mar 12 16:24:52 2025 by llama3.2 3B Q4_K_M
