IT Service Providers Fined $10 Million for Malware Claims, Sales Tactics

Inbound Call Experts (doing business as Advanced Tech Support) and associated defendants will pay a $10 million fine to settle charges related to fraudulent, high-pressure sales tactics, according to the FTC.

The defendants allegedly operated a telemarketing scheme that falsely claimed consumers had malware and virus on their computers, according to the FTC and the U.S. District Court for the Southern District of Florida. Under terms of a court order, a federal judge will appoint a monitor to oversee the defendants’ business for two years, at the defendants’ expense.

In addition to Inbound Call Experts, the telemarketing defendants include Advanced Tech Supportco LLC; PC Vitalware LLC; Super PC Support LLC; Robert D. Deignan, Paul M. Herdsman and Justin M. Wright.

Advanced Tech Support, based in Boca Raton, Fla., experts is expected to resume business next week, according to the SunSentinel. Among the remaining issues: Hundreds of company employees allegedly await compensation for work done before a court order temporarily shut down the business, the newspaper said.

U.S. prosecutors have been cracking down on IT support firms that allegedly use high-pressure sales tactics and misleading security claims. iYogi, for one, faces multiple fines and multi-million-dollar judgments to address unpaid invoices and alleged business fraud.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.