FTC expands rules to hold tech support scammers accountable
The Federal Trade Commission (FTC) can now go after scammers posing as tech support providers even if it’s the consumer who called them up. It has just approved amendments to its Telemarketing Sales Rule that expands its coverage to include “inbound” calls to companies pitching “technical support services through advertisements or direct mail solicitations.” Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, explained that the new rule will allow the agency to hold these scammy businesses accountable and to get money back for the victims.
“The Commission will not sit idle as older consumers continue to report tech support scams as a leading driver of fraud losses,” Levine also said, because the rule’s expansion would mostly help protect consumers 60 years and older. According to the agency, older adults reported losing $175 million to tech support scams in 2023 and were five times more likely to fall for them than younger consumers.
Tech support scams typically trick potential victims into calling them by sending them emails or triggering pop-up alerts claiming that their computer has been infected with malware. Scammers then ask their targets to pay for their supposed services by wiring them money, by putting money in gift or prepaid cars or by sending them cryptocurrency coins, because those methods can be hard to trace and reverse. They’ve long been a problem in the US — the agency shut down two massive Florida-based telemarketing operations that had scammed victims out of $120 million in total way back in 2014 — but the issue has been growing worse over time. The $175 million victims reported losing in 2023 was 10 percent higher than the reported losses to tech support scams in 2022.
As the FTC notes, the Telemarketing Sales Rule has been updated several times since the year 2000 before this latest amendment. The first amendment in 2003 led to the creation of the Do Not Call Registry for telemarketers, while subsequent changes were made to cover pre-recorded telemarketing calls and debt collection services.
