Technical Support Scams Cost Older Consumers $175M in Losses Last Year
WASHINGTON – Consumers 60 and older are five times more likely than younger people to report losing money in a tech support scam, and last year older consumers reported more than $175 million in losses to tech support scams. To address this rampant fraud, on the day before Thanksgiving, the Federal Trade Commission approved amendments to its Telemarketing Sales Rule (TSR) to cover “inbound” telemarketing calls scams that entice consumers to call for technical support but really bilk them out of their hard earned money.
“We commend the FTC for taking this important step to protect consumers from calls that they make to fraudsters posing as technical support services when those calls are made in response to direct solicitations,” said Margot Saunders, senior attorney at the National Consumer Law Center. “These ‘inbound’ calls have been used to steal money from vulnerable consumers, particularly older adults, and this new regulation will help eliminate these scams.”
The fraudulent transactions often begin with a computer pop-up warning about suspicious activity or malware that encourages consumers to call for assistance. Once the consumer makes an inbound telemarketing call, the scammer proceeds to convince the caller to pay for tech support services they don’t need to fix a problem that doesn’t exist.
“We particularly appreciate the FTC’s articulation of a number of technical terms, to ensure the maximum protection for consumers from these scam artists,” said Chris Frascella, counsel at the Electronic Privacy Information Center (EPIC).
The Commission vote approving publication of the notice in the Federal Register was 4-1, with Commission Andrew Ferguson voting no and issuing a dissenting statement. Commissioner Melissa Holyoak issued a separate concurring statement. Most provisions of the final rule will become effective 60 days after publication.
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