Americans hit hard by tech support scams — FTC takes action

The Federal Trade Commission (FTC) has announced an amendment to its Telemarketing Sales Rule (TSR), extending its coverage to outbound calls related to fraudulent technical support services. This new provision aims to protect consumers, especially older Americans, from falling victim to tech support scams that have become increasingly prevalent in recent years.

Under the new rule, telemarketing calls made by consumers in response to ads or direct mail solicitations for tech support services will now be subject to the same protections as traditional inbound telemarketing calls. So, consumers will not only be protected against incoming scam calls but also against the calls they mistakenly make to fraudsters. These calls, incoming or outgoing, trick consumers into paying for unnecessary or non-existent services to “fix” problems on their computers, smartphones, or other devices.

The move comes after the FTC’s recent report to Congress highlighted the staggering impact of these scam calls, especially on older consumers. Last year, individuals aged 60 and older were found to be five times more likely to report losing money to tech support fraud, with total losses of over $175 million. As of this year, consumers have already reported losing over $165 million to such scam calls. The FTC warns these calls often involve payment through non-reversible methods like gift cards, cryptocurrency, or money transfer apps.

The final rule now defines technical support services as any plan, program, software, or service marketed to repair, maintain, or improve the performance or security of a device, including smartphones, tablets, and smart home products. It also includes any software or app run on such devices. The FTC hopes the new rule will help curb deceptive tactics used by scammers, such as pop-up alerts claiming a device is infected with malware.

Most provisions of the final rule will become effective 60 days after publication.