The U.S. Federal Trade Commission (FTC) has begun disbursing more than $25.5 million to victims of fraudulent tech support schemes. The funds were recovered from two companies that deceptively coerced users into paying for bogus computer repair services.
The case involves two interconnected firms, Restoro and Reimage, both operating under the same corporate entity. For an extended period, these companies duped customers into believing their computers required urgent repairs, falsely claiming the presence of malware and security threats. To make their deception more convincing, they employed counterfeit Windows pop-up warnings designed to create a sense of urgency.
Once a user agreed to pay for the initial service—ranging between $27 and $58—the fraudsters would later recontact the victim, demanding significantly larger sums for fictitious additional repairs. The cost of these so-called services could escalate to as much as $500 per instance.
However, the fraudulent scheme ultimately collapsed when one of the individuals targeted for an expensive upsell turned out to be an undercover agent. This crucial development paved the way for a full-scale investigation, leading to the shutdown of the illicit operation. The companies admitted to their wrongdoing and agreed to compensate affected consumers with over $25.5 million while also ceasing their deceptive practices. The average reimbursement per victim amounts to approximately $34.
In total, the FTC will issue 736,375 payments via PayPal on March 13 and 14. The funds will remain available for one month for recipients to claim.
The fraudulent operation, which preyed on users’ fears to extract money, had long been on the radar of fraud monitoring systems. Reports of suspicious financial activity had been surfacing at the FTC for several years, ultimately leading to this enforcement action.
