Tech Support Scams Now Subject to Stricter Telemarketing Regulations, FTC Says

Regulations protecting people 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 changed its telemarketing sales rule to include calls people are tricked into making to companies claiming to sell technical support services, such as malware or antivirus protection.

Most of the new parts of the rule covering tech support scams will take effect in 60 days, the FTC said.

THE FTC TSR Regulations prohibiting telemarketers from lying about terms and asking for payment by wire transfer, bank account information for a check that doesn’t require a signature, or giving a PIN for a prepaid card, among other rules.

People 60 and older were five times more likely than younger people to lose money to a tech support scam in 2023, accounting for more than $175 million in losses, the FTC said in a press release. an October report in Congress.

“The Commission will not stand idly by as older consumers continue to report tech support scams as a leading driver of fraud-related losses,” said Samuel Levine, Director of the Consumer Protection Bureau. consumers of the FTC.

What are tech support scams?

Tech support scams trick people into paying to fix a problem that doesn’t exist.

The scams trick people into calling through pop-up alerts, mass mailings and other tactics claiming that a computer or other device is infected with malware or other problems, the FTC said.

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

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

In April 2024, the FTC began taking public comments on whether it should subject technical support services to its Telemarketing Sales Rule, which has been regularly updated since 2000.

Commissioner Andrew N. Ferguson was the only FTC member to vote against amending the telemarketing rule to include technical support services.

“I disagree with this regulation, not because it’s bad policy, but because the time for Biden-Harris FTC rulemaking is over,” he said . said.