The Federal Trade Commission brought six law enforcement actions
The Federal Trade Commission brought six law enforcement actions against individuals and companies who allegedly defrauded computer owners through “scare ware.” Chairman Jon Leibowitz said scammers across the globe, but mostly located in India, would perpetrate “outrageous and disturbing cons”…
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by cold calling individuals, “remotely diagnose” their computers, telling the individuals that the computers were infected with malware, and then charge between $49 and $450 to “remove the phantom malware.” Working with Australia’s Communication and Media Authority and Canada’s Radio-Television and Telecommunications Commission, the FTC has brought claims against 14 companies and 17 individuals, has frozen $188,000 in U.S. funds held by the alleged scammers. The U.S. agency said it worked with U.S. phone and Internet providers to ensure that the alleged scammers won’t have access to the phone lines and Internet connections used to facilitate the scams. Congress needs to renew the SAFE WEB Act for the FTC and agencies abroad to keep going after such scams, Leibowitz said. The act allows the FTC to share information and collaborate with foreign law enforcement agencies for consumer protection investigations. Renewing the act is important because the FTC and other foreign agencies “are much more effective working together than we would be individually,” Leibowitz said. “We need enforcement tools that keep up with the bad guys,” Leibowitz said, thanking the “bipartisan champions of the renewal of the U.S. SAFE WEB Act authority.” The House has already voted to renew the act, he said, but if the Senate does not vote to do the same after the elections, the FTC’s authority in cases like these will expire next year. Leibowitz said he hopes the enforcement actions would be “a wake up call for computer users around the world that there are some useful strategies” when it comes to recognizing scams. Educating users is necessary because “consumer awareness is often the first line of defense,” he said, pointing to online resources such as OnGuardOnline.gov. Consumers should be suspicious of any companies that place cold calls and remotely diagnose computer problems, said Microsoft Director of Consumer Affairs Frank Torres. “Microsoft will never cold call a consumer,” he said, and other “legitimate companies” are “very unlikely to do these sorts of cold calls.” If a consumer receives one of these cold calls or is concerned about their computer, he should seek legitimate resources, such as McAfee, Torres said. Solving such scam threats “takes the cooperation of industry, government and regulators,” he said.