Tech support scams now under tougher telemarketing regulations, FTC says

Seniors are five times more likely to lose money to tech support scams than younger people

November 27, 2024

Regulations protectingpeople from telemarketing scams now cover tech support scams, which have cost victims hundreds of millions of dollars in recent years.

In a 4-1 vote, the Federal Trade Commission said Wednesday it amendedits Telemarketing Sales Rule to include calls people are tricked intomaking to companies claiming to selltechnical support services, such as malware or virus protection.

Most new parts of the rule covering tech support scamswill go into effectin 60 days, the FTC said.

The FTC's TSR regulations forbid telemarketers fromlyingabout any terms andasking for payment via wire transfer, bank account information for a check that doesn't require a signatureor giving a PIN for a prepaid card, among other rules.

People 60 years of age and older were five times more likely than younger people to lose money to a tech support scam in 2023, amounting to more than $175 million in losses,the FTC said inan October reportto Congress.

The Commission will not sit idle as older consumers continue to report tech support scams as a leading driver of fraud losses, said Samuel Levine, Director of the FTCs Bureau of Consumer Protection.

What are tech support scams?

Tech support scams trick people intopaying to fix a problem that doesn't exist.

The scams deceive people into calling through pop-up alerts, direct mail and other tactics that claima computer or other device is infected with malware or other problems, the FTC said.

Victims then end up paying scammers in ways that are hard to reverse, the FTC said, including wire transfer, putting money on a gift card, prepaid card or cash reload card or using cryptocurrency or a money transfer app.

In 2024 so far, the FTC said victims have lost more than $165 million to tech support scams.

In April 2024, the FTC began taking public comments on if it shouldput tech support services underits Telemarketing Sales Rule, which has been regularly updated since 2000.

Commissioner Andrew N. Ferguson was the only member of the FTC who voted against amending the telemarketing rule to include tech support services.

"I dissent from this rulemaking not because it is bad policy, but because the time for rulemaking by the Biden-Harris FTC is over," he said.

 

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