BBB Study: Sophisticated Scheme Helps Tech Support Scammers Bilk

BBB Study: Sophisticated Scheme Helps Tech Support Scammers Bilk Millions From US Citizens

A report by Better Business Bureau (BBB) says it’s not a matter of if you will become a target of computer technical support scammers, but when these scammers will try to victimize you. Thieves, most of whom are located in India, are using sophisticated advertising and carefully crafted sales techniques to scare consumers into buying phony fixes for their home and business computers. BBB warns consumers to remain on guard so they can combat these fraudsters.

The report – “Pop-Ups and Impostors: A Better Business Bureau Study of the Growing Worldwide Problem of Computer Tech Support Scams” – says that anyone who owns or uses a computer is a potential target. Complaints about the fraud continue to mount as Microsoft, a software company whose name is routinely used by the scammers, reports it receives more than 12,000 complaints worldwide every month.

The report recommends a tougher, more-coordinated effort by U.S. law enforcement, including the filing of civil and criminal cases against the scammers. It urges law enforcement in India and other foreign countries where the scammers originate to make computer tech fraud a high priority. It also asks search engine companies to carefully vet, set strict standards and consider eliminating sponsored links for tech support firms that do not meet standards.

“We have been concerned about computer tech scams for quite some time and each year we see a spike in reports from consumers,” said Jim Temmer, BBB Serving Wisconsin President and CEO. “What adds insult to injury is that victims pay criminals, and then those victims have to turn around and make an additional payment to a legitimate computer repair company to fix the problems that the criminals created.”

Nelson G. of Milwaukee gave a fictitious computer technician permission to log in to his computer remotely and was told, “not to worry because he can fix everything and my computer would run like new again. I would receive lifetime support and the service would transfer to any new computer that I would buy in the future. They also installed a lifetime virus protector and protection from identity theft.” After paying $626.93, he called to cancel per its supposed 30-day money back guarantee, but they refused.

James B. of Appleton says, “I allowed them to charge my credit card $499, but the problems continued. They contacted me again and said they would need an additional $500 to try to fix the problem again. This time they wanted me to purchase $500 worth of iTunes cards and send the codes to a bank in China, which I did. That didn't fix the problem either, so they told me they needed another $1000 in iTunes cards. At that point I told them I wasn't going to give them any more money.”

Jean L. of Cambridge says, “I was trying to install a new printer and was having a problem. I thought I went to the manufacturer’s website, but then ended up talking to a (supposed) tech support rep who told me in order to install the new printer I had to give them access to my computer. I did and was charged $300. They told me I could get a refund if not satisfied (I believed them)…I later called to cancel and they told me it was now non-refundable. I informed them they did not fix the problem. FRAUD!!”

Among the report’s key findings:

• Consumers typically are lured into the scheme by four ways – by either a pop-up ad on their computer; an unsolicited phone call from a “technician” claiming to have detected problems with the user’s computer; via ransomware attached to an email; or by Internet searches for technical support on sponsored links.
• Most people lose money through use of credit cards or debit cards (55 percent). Checks (36 percent) are the second most-common form of payment.
• The problem is worldwide with U.S. residents accounting for 33.6 percent of victims. The scam also is popular in Australia (25.4 percent of victims) and Singapore (22.4 percent).
• Studies show that 85.4 percent of the scammers come from India. Less than 10 percent of the scammers operate inside the U.S.
• According to the FBI, U.S. consumers lost more than $21 million to the scheme in the first nine months of 2017.

The report was prepared by C. Steven Baker, BBB International Investigations Specialist. Baker is the retired director of the Federal Trade Commission’s Midwest Region.

BBB offers tips for consumers to avoid being caught in a computer tech support scam:

• Research tech support companies before you decide to do business with them. Go to bbb.org to search for BBB Business Profiles.
• Double-check all the details. If you’re directed to an official company website, make sure that it’s the real company’s site by double-checking the spelling of the company’s name in the website address. Anything that claims to be from “Microsoft,” for example, is a scam.
• If a caller claims to work for a reputable company, ask them to tell you their name or their employee ID, and in which department they work. Then look up and call that company’s official customer service line and ask to be directed to that employee. Do not use a phone number provided to you by the caller.
• If your computer has been compromised, don’t panic. You may still be able to get your machine fixed. Scammers are relying on you to make hasty decisions, you’ll be better able to avoid their traps if you slow down and don’t rush.
• Make sure you you’re using a quality, up-to-date antivirus software. Make sure you are running the latest version of the software.
• Change your passwords. First change the password to any account or machine the scammer has or could access. Then change the passwords on any account that you were logged in to on your machine, as well as any accounts for which you use the same or very similar login credentials.
• Call your credit card company. If you made a payment by using your credit card, the company will help you to appeal any unauthorized charges and to get a new card.
• Victims can report it to BBB’s Scam Tracker.

To read the complete study with more details on who is behind the scam, how they are requesting money, and whom they are victimizing, as well as BBB’s recommendations for dealing with the problem, click here.

For more information or further inquiries, contact the Wisconsin BBB at www.bbb.org/wisconsin or 414-847-6000 (metro Milwaukee), 920-734-4352 (Appleton), or 1-800-273-1002 (elsewhere in Wisconsin). Consumers also can find more information about how to protect themselves from scams by following the Wisconsin BBB on Twitter, Facebook and You Tube.