Multinational Crackdown on Computer Con Artists

Consumer frauds often make claims that are too good to be true. But a recent one, cited by regulators around the world Wednesday, depended on a pitch that many people found completely believable — that Microsoft or another computer company knows what is on your personal computer.The Federal Trade Commission announced a multinational crackdown on so-called tech support scams, in which a caller fools a consumer into believing Microsoft or a computer security company has discovered that a PC is infected with harmful software. The caller then offers to fix the computer on the spot for a price. The target would sometimes let the ostensible tech support company gain remote access to his computer, allowing the company to download software to it.
http://www.nytimes.com/2012/10/04/business/multinational-crackdown-on-computer-con-artists.htmlAlso see:Global operation nabs multi-million-dollar spamming ring
Joint action by the communications watchdog and US authorities has dismantled an international spamming ring that duped tens of thousands of unwitting computer users to collectively hand over millions of dollars in one of the world’s biggest global phone scams.Australia was used as a test-bed for the so-called “Microsoft imposter” scam which saw unsuspecting computer users duped out of money and personal banking details when scammers would cold-call victims and gain remote access to computers by installing “anti-virus” programs to “fix” non-existent viruses.
www.theaustralian.com.au/australian-it/global-operation-nabs-multi-million-dollar-spamming-ring/story-e6frgakx-1226487642050Australia helps foil global ‘Microsoft Impostor’ scam
Australian, American and Canadian authorities have joined forces to foil a major international phone scam, known as the Microsoft Impostor scam.The scam, which involves people pretending to be Microsoft employees offering to fix computer viruses, is thought to have ripped off tens of thousands of people in six countries.US authorities this week won court orders to close down and freeze funds of alleged US-based parties involved in the scheme. Canadian authorities have fined one of the companies involved, Pecon Software, $490,000.
www.theage.com.au/digital-life/consumer-security/australia-helps-foil-global-microsoft-impostor-scam-20121004-2706t.html
www.smh.com.au/digital-life/consumer-security/australia-helps-foil-global-microsoft-impostor-scam-20121004-2706t.htmlUS shuts down ‘scareware’ scam which hit Kiwis
US officials have shut down a series of so-called tech support scams, mostly operating from India, which targeted English-speaking consumers, including New Zealanders.
http://www.nzherald.co.nz/technology/news/article.cfm?c_id=5&objectid=10838296FTC Targets Computer Support Scams
The Federal Trade Commission announced on Wednesday that it has uncovered an international scam that allegedly duped consumers into believing their computers had been infected with viruses and malware in order to charge them for fixing the problems.The FTC said it obtained court orders to halt six conspiracies that the commission said cost consumers in the United States, Australia, Canada, Ireland, New Zealand, and the U.K. tens of millions of dollars.
http://techdailydose.nationaljournal.com/2012/10/ftc-targets-computer-support-s.phpFTC Halts Massive Tech Support Scams: Tens of Thousands of Consumers Allegedly Tricked Into Paying for Removal of Bogus Viruses and Non-Existent Spyware, and Allowing Scammers to Remotely Access their Computers [news release]
The Federal Trade Commission has launched a major international crackdown on tech support scams in which telemarketers masquerade as major computer companies, con consumers into believing that their computers are riddled with viruses, spyware and other malware, and then charge hundreds of dollars to remotely access and “fix” the consumers’ computers.

At the request of the FTC, a U.S. District Court Judge has ordered a halt to six alleged tech support scams pending further hearings, and has frozen their assets.”The FTC has been aggressive – and successful – in its pursuit of tech support scams,” said FTC Chairman Jon Leibowitz. “And the tech support scam artists we are talking about today have taken scareware to a whole other level of virtual mayhem.”The FTC charged that the operations – mostly based in India – target English-speaking consumers in the United States, Canada, Australia, Ireland, New Zealand, and the U.K. According to the FTC, five of the six used telemarketing boiler rooms to call consumers. The sixth lured consumers by placing ads with Google which appeared when consumers searched for their computer company’s tech support telephone number.According to the FTC, after getting the consumers on the phone, the telemarketers allegedly claimed they were affiliated with legitimate companies, including Dell, Microsoft, McAfee, and Norton, and told consumers they had detected malware that posed an imminent threat to their computers. To demonstrate the need for immediate help, the scammers directed consumers to a utility area of their computer and falsely claimed that it demonstrated that the computer was infected. The scammers then offered to rid the computer of malware for fees ranging from $49 to $450. When consumers agreed to pay the fee for fixing the “problems,” the telemarketers directed them to a website to enter a code or download a software program that allowed the scammers remote access to the consumers’ computers. Once the telemarketers took control of the consumers’ computers, they “removed” the non-existent malware and downloaded otherwise free programs.FTC papers filed with the court alleged that the scammers hoped to avoid detection by consumers and law enforcers by using virtual offices that were actually just mail-forwarding facilities, and by using 80 different domain names and 130 different phone numbers.The FTC charged the defendants with violating the FTC Act, which bars unfair and deceptive commercial practices, as well as the Telemarketing Sales Rule and with illegally calling numbers on the Do Not Call Registry. It asked the court to permanently halt the scams and order restitution for consumers.The FTC acknowledges and appreciates the support it received from the Australian Communications and Media Authority (ACMA), the Canadian Radio-television and Telecommunications Commission (CRTC), and the United Kingdom’s Serious Organised Crime Agency, each of which provided invaluable assistance to the FTC. The CRTC and ACMA also brought administrative actions for violations of their Do Not Call laws. The FTC also acknowledges investigative assistance it received from Microsoft, as well as from other computer companies.The FTC cases targeted 14 corporate defendants and 17 individual defendants in 6 legal filings, Pecon Software Ltd., Finmaestros LLC, Zeal IT Solutions Pvt. Ltd., Virtual PC Solutions, Lakshmi Infosoul Services Pvt. Ltd., and PCCare247, Inc., and individual defendants in each of the cases.The Commission vote to authorize staff to file the complaints was 5-0. The complaints were filed in the U.S. District Court for the Southern District of New York.
http://ftc.gov/opa/2012/10/pecon.shtm

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