Indian Tech Firm Sued in US for Alleged Illegal Business Practices

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A technology support company run by an Indian-American entrepreneur has been sued by the US state of Washington for alleged illegal business practices to pressure consumers into buying unnecessary software, a charge denied as false and baseless by the firm.”Tech support scams defraud consumers and often trade on the good reputations of legitimate businesses,”.This lawsuit sends a message to tech support scammers that my office will hold them accountable.His company “has attained its industry leadership by being customer focused and value driven, and our service is successful because it addresses a genuine need.”

Tech support frauds are a real issue in the US and as a responsible industry leader we have been working with authorities in both countries to counter the issue.As part of its investigation, Ferguson’s office found that in online ads, iYogi associated itself with major technology companies such as Microsoft, Apple and HP and when consumers called iYogi, the representative claimed to provide tech support services on behalf of whatever company the consumer inquiries about.

After gaining remote access to the consumer’s computer, iYogi identified benign but complex-looking files and claimed the “infected files” would harm the computer. Once iYogi has alarmed the consumer, the representative proceeded to aggressively sell a tech support plan to fix the non-existent problems for $140-379.According to Microsoft, an estimated 71,000 Washingtonians lose $33 million each year to these schemes. Nationwide, an estimated 3.3 million Americans suffer $1.5 billion in annual losses from tech support scams, the Washington Attorney General’s office said. Based out of New York, iYogi has over 5,000 employees with call centers in India.

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