1 November 2018

Millennials, males most prone to tech support scams

- Globally, the incidence of tech support scams has declined compared to 2016, but still poses a threat to consumers globally.

- In Singapore, 57% of consumers said that they have encountered a tech support scam in the form of an unsolicited call, redirect to website, unsolicited email or a pop-up ad or window in 2018.

- While over half of Singaporeans have encountered a tech support scam in the past year, 43% of Singapore respondents chose not to interact with scammers.

- Millennials and males in Singapore are found to be most prone to tech support scams as compared to other demographic groups.

- Popup ads/windows are the most common types of tech support scams encountered by Singapore consumers, followed by redirect to website, unsolicited emails and unsolicited phone calls.

Ad popups are the most prevalent type of tech support scam.
Ad popups are the most prevalent type of tech support scam.

While the incidence of tech support scams has declined compared to two years ago, the issue remains a problem globally, with Millennials and males among the most prone to tech support scams. Microsoft has released a new global survey*providing insights into the state of tech support scams in 2018 and its impact on consumers worldwide.

Conducted by Microsoft’s Digital Crimes Unit with 16,048 respondents globally, including 1,000 from Singapore, the survey found that while the incidence of tech support scams have declined compared to 2016, it still poses a threat to consumers globally. The survey found that three in five people have experienced a tech support scam and one in five has lost money to fraudsters globally in the past year.

Tech support scams can occur in various forms. For years, scammers have tricked consumers into handing over control of their computers and personal information by peddling bogus security software and services over the phone. They ask for credit card details, and do not deliver anything; the victims typically receive credit card bills for purchases that they did not make later on.

Today, scam artists have adapted to changing technology by finding more sophisticated tactics to target users online. They can now use phishing emails, phony websites, and popup windows to gain access to a person’s computer. Some will even ask permission to access the victim's computer to solve a problem, enabling them to steal personal and financial information that is already on the computer.

According to Mary Jo Schrade, Assistant General Counsel and Regional Director, Digital Crimes Unit (DCU), Microsoft Asia, callers often impersonate Microsoft (or HP, Dell, Symantec, Google and Apple) or may send a popup that says Windows has encountered a virus that can only be cleaned by calling a specific number. Schrade said less tech-savvy people are typically selected as victims through focusing on owners of fixed lines - the more tech-savvy typically rely on their mobile numbers.

"They're assessing all the time whether you're sophisticated or not," she said of scammers who take control of a victim's computer. "They will pull up random things and highlight them to make you think that it is a virus."

Scammers can also install malicious software to extort money from victims for fake tech support that purportedly “fixes” fraudulent computer problems.

According to the survey, fewer consumers in Singapore have encountered a tech support scam in 2018 compared to 2016. More than half (57%) of the consumers said that they have encountered a tech support scam in the form of an unsolicited call, redirect to website, unsolicited email or a popup ad or window in 2018, a significant decline from the 65% who encountered one in 2016.

While over half of Singaporeans have encountered a tech support scam in the past year, the city state is ranked among the most savvy countries globally when dealing with tech support scams. Four in 10 (43%) Singapore respondents chose not to interact with scammers – the fourth highest percentage globally - behind Japan (65%), China (57%) and Germany (48%).

Additionally, while a minority (15%) continued interacting with scammers after encountering a tech support scam, only 4% of respondents have lost money as a result of tech support scams in 2018, down from the 7% who lost money as a result of the issue in 2016.

When comparing demographic groups, Millennials in Singapore aged between 24 and 37 emerged as the group that is most prone to tech support scams, followed by Gen X (aged 38 to 53), Gen Z (aged 18 to 23) and Baby Boomers (aged 54 and above). Globally, Millennials were also most likely to believe that the unsolicited contact is normal.

When comparing across gender, male consumers were also found to be more vulnerable to tech support scams, as compared to females.

Among consumers who have lost money as a result of tech support scams, activities that they frequently engage in include sharing email information in exchange for content, downloading movies, music and videos, or visiting torrent sites. This implies that these activities can be considered risky online behaviour that increase one’s exposure to potential scams.

Additionally, the survey also found that monetary loss was not the only consequence of tech support scams, with its impact extending to one’s mental well-being as well. Half of the Singaporean respondents who continued engaging with scammers ended up spending time checking or repairing their computers, while 81% of Singaporean respondents reported moderate to severe levels of stress as a result.

In terms of the most common types of tech support scams encountered by Singapore consumers, popup ads and windows emerged tops, ahead of redirect to website, unsolicited emails and unsolicited phone calls.

Types of scams encountered by Singapore respondents

Rank
Tech support scam
Percentage of respondents who encountered this
#1
Popups: Online advertisements that seem to be from a trustworthy company. These claim that your computer is infected with a virus and that they can help resolve the issue.

43%
#2
Redirect to website: Been redirected to a website that appears to be from a reputable company. These claim that your computer is infected with a virus and that they can help resolve the issue.

37%
#3
Unsolicited emails: The most common emails appear to be from a reputable company which claim that your computer is infected with a virus and that they can help resolve the issue.

35%
#4
Unsolicited phone calls: An unsolicited telephone call from someone claiming to be from a reputable company. The caller shares that your computer may be infected with a virus or some other security or network problem, and that they can help resolve the issue.

20%

Schrade said that globally, Microsoft receives 2,500 complaints a week and reviews 200,000 popup images daily. She also shared that Microsoft is now using artificial intelligence and machine learning to make the identification of scam-related popups easier. Instead of looking for a particular sequence of words and numbers which could change as scammers change names and phone numbers, AI can shortlist which of the many popups are suspicious very quickly, with accuracy of 80% to 100%.

The results can be used to connect consumer complaints to popup images, gaining intelligence in realtime to help with case development enrichment, disruption at scale, as well as evidence for law enforcement to strengthen investigations, she said.

"Bing has a fraud alert – when people buy advertising, we can check if it's a tech support scam," Schrade disclosed. "We have rejected 130 million ads as a result of that."

Microsoft recommends the following tips for consumers to protect themselves:

- Be wary of any unsolicited pop-up message on your device, don’t click on it, and don’t call the number.

- Never give control of your computer to a third party unless you can confirm that it is a legitimate representative of a computer support team with whom you are already a customer of.

- Hang up and contact Microsoft directly at the Microsoft Answer Desk

“While consumers in Singapore have shown that they are increasingly more knowledgeable about tech support scams, it is important to note that tech support scam methods will continue to evolve. Always remember that companies like Microsoft will never proactively reach out to consumers to provide unsolicited PC or technical support and do take action to report a scam to the authorities whenever you encounter one.

"At Microsoft, our Digital Crimes Unit uses a data-driven approach to investigate tech support fraud networks and work with law enforcement to combat them. At the same time, we are always making sure that we continue to strengthen our products and services to better protect consumers from the constantly-evolving nature of fraudulent practices,” said Richard Koh, CTO, Microsoft Singapore.

Details:

Read the survey report

If you think you may have been the victim of a tech support scam, report your experience at www.microsoft.com/reportascam and also file reports with law enforcement authorities, such as your local consumer protection authority

Learn how to protect yourself from tech support scams

Read the WorkSmart Asia blog post about the Microsoft PC Test Purchase Sweep

*The global study was conducted with 16,048 respondents in 16 markets: Australia, Brazil, Canada, China, Denmark, France, Germany, India, Japan, Mexico, New Zealand, Singapore, South Africa, Switzerland, the UK and the US.