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Court Shuts Down Alleged $120M Tech Support Scam
wiredmikey writes A federal court has temporarily shut down and frozen the assets of two telemarketing operations accused by the FTC of scamming customers out of more than $120 million by deceptively marketing computer software and tech support services. According to complaints filed by the FTC, since at least 2012, the defendants used software designed to trick consumers into believing there were problems with their computers and then hit them with sales pitches for tech support products and services to fix their machines.
According to the FTC, the scams began with computer software that claimed to improve the security or performance of the customer's computer. Typically, consumers downloaded a free, trial version of the software that would run a computer system scan. The scan always identified numerous errors, whether they existed or not. Consumers were then told that in order to fix the problems they had to purchase the paid version of the software for between $29 and $49. In order to activate the software after the purchase, consumers were then directed to call a toll-free number and connected to telemarketers who tried to sell them unneeded computer repair services and software, according to the FTC complaint. The services could cost as much as $500, the FTC stated.
According to the FTC, the scams began with computer software that claimed to improve the security or performance of the customer's computer. Typically, consumers downloaded a free, trial version of the software that would run a computer system scan. The scan always identified numerous errors, whether they existed or not. Consumers were then told that in order to fix the problems they had to purchase the paid version of the software for between $29 and $49. In order to activate the software after the purchase, consumers were then directed to call a toll-free number and connected to telemarketers who tried to sell them unneeded computer repair services and software, according to the FTC complaint. The services could cost as much as $500, the FTC stated.
If we consider the aggregate harm of these scams, they're on the order of mass murder, possibly up there with actual war. Thus the punishment should fit the crime. It's not even like these people have the Moist von Lipwig excuse of scamming the scammers.
Just change a few words and multiply the numbers:
Typically, consumers downloaded a free, trial version of the software. The business analysts always identified numerous suboptimal business processes, whether they existed or not. Consumers were then told that in order to fix the problems they had to purchase the paid version of the software for between $290,000 and $490,000. In order to customize the software after the purchase, consumers were then directed to call a certified partners network and connected to consultants who tried to sell them unneeded upgrades and tools. The services could cost as much as $500 per hour.
...and you get a typical SAP implementation scenario.
lucm, indeed.
The consequences of free speech is the prevalence lies, sigh...