Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC testifies on efforts to combat technical support scams, (Oct 21, 2015)

By Greg Hammond, J.D.

Lois Greisman, Associate Director of the FTC Bureau of Consumer Protection Division of Marketing Practices, testified before the Senate Committee on Aging today, discussing the Commission’s efforts in “Combatting Technical Support Scams.” In particular, Greisman illustrated the FTC’s efforts to combat these scams through law enforcement, working with international partners, and consumer and business outreach.

Tech support scammers, according to Greisman’s prepared testimony, use a number of ways to convince consumers they have a problem with their computer, including calling consumers, using deceptive consumer pop-up messages, and placing advertisements with search engines. Once consumers are on the phone, telemarketers attempt to convince them that their computers suffer from significant “errors” or are infected with malicious software, inducing consumers to buy needless services and software.

“[T]hese nefarious scams appear to have a disproportionate impact on older consumers,” Greisman said. “[O]f more than 18,000 tech support complainants to the FTC who reported their age, 76% are over 50; 56% are over 60 years old.”

To combat such scams, the FTC has used aggressive law enforcement, Greisman stated. For example, she noted that the Commission launched a major international crackdown in 2012, stopping six tech support scams, primarily in India, that targeted consumers in the United States. The Commission obtained final judgments and orders against all of the defendants in these cases. Currently, the FTC has two cases in litigation, in which the Commission is seeking injunctive relief to stop the allegedly deceptive practices, according to the prepared remarks.

The Commission is also “actively working with government officials, law enforcement, private companies, and trade associations in India to combat” the many tech support scams that originate in India, Greisman said. In particular, the FTC has held two conferences in New Delhi in which the agency was able to develop relationships with public and private sector partners to help fight tech support scams in India. She also noted that the FTC has strong relationships with law enforcement partners in Australia, Canada, Ireland, New Zealand, and the United Kingdom.

Lastly, the FTC has used consumer education and industry outreach to increase consumers’ awareness of tech support scams, Greisman said. Such efforts include information, blog stories, and videos posted on the Commission’s website, as well as FTC educational efforts like “Pass It On,” which is aimed at active, older adults.

News: ConsumerProtection FederalTradeCommissionNews