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FTC to Expand Rule to Combat Tech Support Scams

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Introduction

The Federal Trade Commission (FTC) has taken a significant step in enhancing consumer protection by approving the final amendments to its Telemarketing Sales Rule (TSR). The rule, which has been in place since 2003, has undergone several revisions to address emerging issues and concerns. The latest amendments aim to provide greater clarity and protection for consumers, particularly in the context of inbound telemarketing calls.

Key Provisions of the Final Rule

The final rule includes several key provisions that will significantly impact the telemmarketing industry. Some of the most notable provisions include:

  • Extension of TSR coverage to inbound telemarketing calls: The amendments extend the TSR’s coverage to include inbound telemarketing calls, which are calls made to consumers from a telemarketer’s office or other location. Clarification on the definition of “solicitation”: The final rule clarifies the definition of “solicitation” to better reflect the nuances of modern telemarketing practices. Enhanced disclosure requirements: The amendments introduce new disclosure requirements for telemarketers, including the need to clearly disclose the terms and conditions of a sale or service.

    These scams can be very convincing, but there are ways to protect yourself from them.

    Understanding the Scam

    What is a Tech Support Scam? A tech support scam is a type of online scam where a scammer claims that your device is infected with malware and offers to fix it for a fee. The scammer may use pop-up alerts, fake websites, or even phone calls to convince you that your device is infected. The scammer may claim that your device is infected with a virus, Trojan horse, or other types of malware. They may also claim that your device is slow or unresponsive, and that they can fix it for a fee. The scammer may use high-pressure sales tactics to convince you to pay for their services. ### How Do Tech Support Scams Work? #### The Scamming Process

  • Initial Contact: The scammer contacts you through a pop-up alert, email, or phone call, claiming that your device is infected with malware. Building Trust: The scammer may use fake websites, fake names, and fake credentials to build trust with you.

    The scams targeted individuals who were already victims of identity theft or had previously been targeted by scammers.

    Imposter Scams: A Growing Concern for Consumers

    Understanding the Threat

    Imposter scams have become a significant concern for consumers in recent years. These scams involve scammers posing as representatives of a legitimate organization, such as a bank, government agency, or utility company, to trick victims into divulging sensitive information or sending money. The scammers often use psychological manipulation and social engineering tactics to build trust with their victims.

    Key Characteristics of Imposter Scams

  • Scammers claim to be from a legitimate organization, such as a bank or government agency. They use high-pressure tactics to create a sense of urgency, such as claiming that an account will be closed or a fine will be imposed if immediate action is not taken. They ask victims to provide sensitive information, such as passwords, social security numbers, or financial information. They may use fake emails, phone calls, or text messages to appear legitimate.

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