(NEXSTAR) – More than $25 million in payments will go out this week to customers who were tricked into paying for fraudulent tech support offered by two companies.
The Federal Trade Commission (FTC) announced Monday that the payments are part of a an order against with Restoro Cyprus Limited and Reimage Cyprus Limited, both based in Cyprus.
The payments follow a settlement that both companies agreed to last year.
How did the scam work?
Samuel Levine, former director of the FTC’s Bureau of Consumer Protection, said in a March, 2024, report that the two companies generated tens of millions of dollars using “scare tactics and lies.”
Restoro and Reimage took advantage of computer owners – many of them elderly – by creating the appearance of serious security issues, then using deception and other tactics to trick the unsuspecting consumers into paying additional money to solve the “issues,” the FTC said.
The scam would often start with fake Microsoft Windows pop-ups warning that viruses had infected the device and prompting the owner to “scan” it “to avoid more damage.”
The FTC said in a criminal complaint that the “scans” would trigger warnings of serious computer problems – regardless of whether or not there was actually a virus or other issue – that Restoro and Reimage software could fix.
After purchasing the software, which sold for $27 to $58, consumers were given a number to “activate” it. When customers called, however, Restoro and Reimage telemarketers would instead sell them additional services and often tell callers that their problems were so serious that only a technician, whose services would cost hundreds of dollars, could fix it, according to the complaint.
Among the many horror stories on social media, one person detailed what happened after Restoro told them they had a problem that could be fixed “for about $40.”
“I let them access my computer and after about 30-45 minutes of screwing around, they said there were extra problems that would cost $200-$300 to repair (I don’t remember exactly how much),” the person wrote on Reddit. “By this time I was done with them and said no. She kept trying to hard sell me and eventually I hung up on her. She kept calling back.”
The Redditor added that a local repair shop did a full scan of the device and didn’t find any of the issues Restoro claimed were affecting the computer.
What to know about the payments
The FTC will be distributing the settlement money on march 13 and 14 in the form of 736,375 PayPal payments.
Customers who are eligible to receive part of the $25.5 million will receive an email at some point between Monday and Thursday.
The FTC advises people to redeem the payment within 30 days.
Anyone with questions about the process can check the FTC’s website or contact the administrator handling the payments, Rust Consulting, Inc. at (844) 590-1102.