New scam reports 'timely reminder' to be vigilant

Monday, 5 December 2016

Scammers are always looking for new ways to steal people’s money.

A new wave of scammers are targeting Kiwi internet users with warnings of fake computer viruses - and some are falling for it, costing them hundreds of dollars.

This has prompted a warning from Microsoft New Zealand and internet watching Netsafe asking consumers to be vigilant when it comes to allowing access to their computers.

James Smith, of Alexandra, lost more than $2000 when fraudsters, posing as Microsoft employees, called him stating a virus had been detected on his home computers. He was sent documentation from the Western Union to fill out as part of the scam.

The scam involves people claiming to be representatives of Microsoft and telling users they have identified a problem with their device.

The scammers are offering to fix the 'compromised' device and are asking for remote access which can reveal passwords, credit card details, bank account numbers and other information.

They may also ask for payment so that protection software – which is malicious – can be installed.

Netsafe said some people had allowed access to their computers and have lost more than $400 as a result.

Prior to the latest reports of losses, some people were being scammed out of thousands of dollars.

Alexandra father James Smith was forced to cancel a family tip to Stewart Island for the school holidays, after scammers stole over $2000 from his bank account.

Smith was one of two Alexandra residents to be duped by the fraudsters who rang pretending to be Microsoft employees.

Netsafe chief executive Martin Cocker said while the pattern of phone scamming was not new, variations of it have been circulating for several years.

'The scammers claim to represent the Microsoft brand because the company is well known to have trusted experts, and so the calls may sound genuine.

'People are led to believe they are doing the right thing by handing over private passwords or details, but are soon fraudulently charged money, have their identity stolen, find their computer has been infected with viruses or other malware that seriously compromises their security.'

Microsoft New Zealand marketing and operations director Frazer Scott said the company would never call its customers asking for remote access to their computers.

'Microsoft does not call customers at home saying that we have detected a problem with their computer, and we will never ask for passwords or other private details in any forum.'

Microsoft and Netsafe have seen an increase in reports of scammers trying to defraud people by phone or by using 'pop up' messages on screens.

Features of scammer calls:

Overseas caller states they are from Microsoft or a Microsoft certified technician
Suggests the victim's computer is infected and harming others online or that their ISP has identified their system as a problem
Will get the computer owner to give the caller remote access using a genuine networking service or website like logmein123 or TeamViewer
They will use the 'Event Viewer' tool on the computer to highlight error messages which are supposedly signs of an infection
The cold caller will offer to clean up the infection and/or install security software and provide an ongoing support service costing anywhere up to $500

How to deal with the overseas cold callers:

Hang up the phone
If you do give access but become suspicious, disconnect from the session immediately
If you have previously given remote access, it may pay to check what has been installed on your computer and be certain there is no way for the company to continue accessing your system and files
If you have paid money to these companies using a credit card, call your bank and discuss your options. WARNING: If you sent funds via Western Union or another wire transfer service, then the money is gone and cannot be recovered
If you have given remote access to your device, handed over private passwords or other information report it Netsafe