The Federal Trade Commission (FTC) has recently tightened its guardrails on telemarketing practices, particularly those targeting senior citizens, by expanding the scope of its Telemarketing Sales Rule (TSR) to include inbound calls for technical support services. This move seeks to clamp down on the pervasiveness of tech support scams which often prey on older demographics, as reported by the Federal Trade Commission.
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, in a statement that outlines the necessity of such measures, particularly noting that "The Commission will not sit idle as older consumers continue to report tech support scams as a leading driver of fraud losses." These scams, which reportedly bilked more than $175 million from consumers aged 60 and over last year, manifest when individuals, desperately seeking aid for their supposedly malware-infested devices, reach out to fraudulent technical support services. As identified by the FTC, older consumers are five times more likely than younger ones to report losing money to such devious scams.
In 2024 alone, reported losses from tech support scams have already exceeded $165 million. These scams often exploit victims by selling unnecessary tech support services to fix non-existent issues. Scammers typically demand payment through irreversible means such as wire transfers, gift cards, and cryptocurrencies, drawing on the payment methods' finality to elude repercussions, as detailed by the FTC.
A 4-1 commission vote approved the rule's publication, with Commissioner Andrew Ferguson dissenting and Commissioner Melissa Holyoak concurring separately. Benjamin Davidson of the FTC’s Bureau of Consumer Protection played a principal role in the development of this final rule, which will be effective 60 days after its publication in the Federal Register. This enhancement of the TSR serves as a testament to the FTC's ongoing commitment to shield consumers from the insidious threat of fraudulent telemarketing practices.
