A CEO and a CSO have pleaded guilty to assisting scammers in carrying out tech-support fraud, which involves fake “blue screens of death” and pop-ups pretending to be from Microsoft and Apple.

Former Cloud Attribution CEO Adam Young and the company’s former CSO, Harrison Gevirtz, pleaded guilty to providing infrastructure to India-based scammers. The duo admitted to providing telecoms services to customers they knew were involved in tech-support schemes.

"By their own admission, they willfully profited from telemarketing and tech support scammers, here and abroad, who preyed on the elderly, exploited the vulnerable, and drained victims of their life savings and peace of mind,” said Ted E. Docks, Special Agent in Charge of the FBI’s Boston Division.

According to the authorities, from 2016 through 2022, Young and Gervitz were aware that some of their customers were engaged in fraud. The scheme involved deceptive pop-up messages that falsely claimed users’ devices were infected.

The pop-ups would claim they come from trusted brands such as Microsoft and Apple, instructing users to call a number shown in the pop-up. Some ads imitate a “blue screen of death,” coaxing users into thinking their machine was inoperable.

Phone numbers would lead victims to call centers, often based in India, where scammers persuaded them to pay money for problems that did not exist. Victims, thinking they’re in contact with a tech company representative, would allow scammers to remotely access devices, leading to loss of personal and financial data.

Court documents reveal that Young and Gevirtz learned about the schemes as early as 2017 and failed to report their customers' behavior to authorities. Moreover, Cloud Attribution received numerous complaints and inquiries from telephone companies and law enforcement about people who got scammed.

However, not only did the duo choose to ignore inquiries, but they also advised their scamming customers on how to avoid complaints and prevent account termination. For example, according to court documents, Young and Gevirtz directed their Sales Associates to deploy techniques, such as using large pools of telephone numbers in their pop-up ads and having customers regularly rotate the numbers.

Other details also point to the CEO and CSO being aware of crimes committed using their services. Young and Gevirtz prohibited tech support customers from using JavaScript on their landing pages. That way, they prevented their company name from appearing in fraudulent pop-up ads.

“Young and Gevirtz, on occasion, introduced customers on their platform engaged in Tech-Support Fraud with other customers engaged in Tech-Support Fraud who were looking to buy and sell calls to one another,” court documents read.

Not only that, but the duo also instructed their sales teams to market Cloud Attribution services towards businesses they knew were involved in tech-support fraud. The duo also separated legitimate customers from those involved in tech-support fraud.

The investigation into the companies’ dealings resulted in several arrests and convictions. At least five India-based fraudsters and one former company employee were convicted of taking part in the scheme.

FBI warns users to be wary of scammers imitating tech support via pop-up ads and by other means. Scammers may offer assistance to numerous services, such as:

• Computer/virus support
• Virus software renewal
• Banking
• Online shopping websites
• Utility companies
• Security (including virus software renewal)
• GPS
• Printer
• Cable and internet companies
• Cryptocurrency exchanges

“They'll inform you that they can fix the issue for you – for a fee – and that you have to act fast. Scammers may ask you to wire cash, send a gift card, or even transfer cryptocurrency as payment. Once you grant the scammer remote access to your computer or your account, they'll steal your personal information and/or money,” the FBI warns.

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