FTC’s $25.5M Scam Refund Treats Victims to $34 Each

They say there’s no such thing as free tech support, and thanks to some shady scammers, that’s never been more true. But guess what? The joke’s on them because the Federal Trade Commission (FTC) just pulled a fast one and is now refunding millions to consumers who got tricked. Let’s dive into this cautionary tale of digital deception.


Tech Support Scam Refunds—What You Need to Know

The FTC is issuing over $25.5 million in refunds to victims of a widespread tech support scam that duped consumers into paying for bogus computer repairs. This means that 736,375 people are getting their money back, averaging about $34 per person.

So, what happened?

Two Cyprus-based companies, Restoro and Reimage, ran a scam operation that began as early as 2018. Their game plan was simple but effective—fake pop-up warnings on Microsoft Windows tricked users into believing their computers were infected with a virus. A “scan” would always reveal serious issues (even if the system was perfectly fine), pushing users to pay for unnecessary fixes.


Who Fell Victim to This Scam?

These scammers cast a wide net, but older adults were particularly vulnerable. Many victims weren’t tech-savvy, making them more likely to believe the fabricated threats. The scammers even targeted previous victims with follow-up calls, attempting to squeeze out even more money—sometimes as much as $500 per person.

One of the scammers’ biggest mistakes? Trying to con an undercover federal investigator. That move sealed their fate, leading to the FTC’s lawsuit and eventual settlement.


Why This Matters

Tech support scams may not make daily headlines, but they are still a major problem. In 2024 alone, fraudsters swindled over $12.5 billion from consumers across various scams. While tech support scams ranked as the 22nd most reported type, they still accounted for 24,311 complaints.

And here’s the kicker—older adults (70+) lost significantly more money on average compared to younger age groups. These scams don’t just rob people of their savings; they erode trust in online security and make people hesitant to seek real tech support when they need it.


How to Protect Yourself from Tech Support Scams

  1. Don’t Trust Pop-Up Warnings – Microsoft, Apple, and other reputable companies don’t send random virus alerts through pop-ups.
  2. Never Call the Number on a Pop-Up – If you see a warning urging you to call a helpline, it’s almost certainly a scam.
  3. Use Verified Support Channels – If you need tech help, contact the company directly through their official website.
  4. Avoid Giving Remote Access – Scammers often request remote control of your computer. Never allow this unless you’re dealing with a verified technician.
  5. Report Suspicious Activity – If you encounter a tech support scam, report it to the FTC at ReportFraud.ftc.gov.


Quick Tips

  • Did you know? Many tech support scams originate from overseas call centers, making them harder to trace and shut down.
  • Pro Tip: Enable your browser’s pop-up blocker to reduce exposure to fake warnings.


Stay safe, stay informed!


Keyword Definitions

  • FTC (Federal Trade Commission): A U.S. government agency that protects consumers from deceptive business practices and fraud.
  • Tech Support Scam: A fraudulent scheme where scammers pose as IT professionals to trick users into paying for unnecessary computer services.
  • Phishing: A cyber-attack where scammers impersonate trusted entities to steal personal or financial information.
  • Antivirus Software: A program designed to detect and remove malicious software (malware) from a computer.
  • Pop-up Scam: A fraudulent warning or alert that appears while browsing the internet, claiming that a device is infected or compromised.


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