Security News > 2024 > March > Tech support firms Restoro, Reimage fined $26 million for scare tactics
Tech support companies Restoro and Reimage will pay $26 million to settle charges that they used scare tactics to trick their customers into paying for unnecessary computer repair services.
"These companies used scare tactics and lies about threats to consumers' personal computers to bilk consumers, particularly older consumers, out of tens of millions of dollars," said Samuel Levine, Director of the FTC's Bureau of Consumer Protection.
Restoro and Reimage used online ads and pop-ups that impersonated Microsoft Windows pop-ups and system warnings, saying that the consumers' computers were infected with malware, had various performance issues, and needed urgent attention to avoid harm.
FTC investigators also paid for these services to replicate the consumers' experience with Restoro between May and June 2022 and Reimage during July and August 2022.
The FTC investigators were asked to pay up to $58 for a "PC Repair Plan" and, after paying, were urged to make "Activation" calls to Restore and Reimage telemarketers, who told them the software couldn't actually fix all the issues.
Besides the $26 million fine, the proposed FTC order, which awaits a federal court's approval, also bans Restoro and Reimage from engaging in deceptive telemarketing and misrepresenting security or performance issues on consumers' devices to scare them into buying additional, unnecessary computer repair services.