Business ProfileforNTS IT Care Inc

DOJ vs NTS IT Care
Jagmeet Singh Virk was charged by a criminal information filed in the U.S. District Court for the Northern District of California on July 22, 2020. The information alleges that Jagmeet Singh Virk, along with others, did knowingly and intentionally conspire to commit wire fraud through methods of a “pop-up warning.”

Between on or about March 2014 through the present, in Santa Clara County, in the Northern District of California, and elsewhere, the defendant, Jagmeet Singh Virk and others devised a scheme to obtain money by means of materially false and fraudulent representation through the NTS IT Care Inc., and NTS Global Services, Pvt. Ltd. A “pop up warning” was used as way to obtain wire communications in interstate and foreign commerce as part of the scheme.

Consumers in the United States received fraudulent pop-up warnings disguised as urgent security alerts from a computer’s operating system. The pop-up warnings were designed to mislead consumers into believing that the warning was from Microsoft, Apple, or another legitimate technology company. The warnings falsely claimed to detect computer viruses or other intrusions, falsely warned of a complete disabling of the computer, and deceptively instructed consumers to call a telephone number to fix the purported computer problem. In addition, the warnings threatened that personal and private information such as Facebook logins, credit card details, email account logins, and photos stored on the computer, were being stolen. Consumers were then urged to immediately call a toll-free number to resolve the problem and prevent the computer from becoming disabled or experiencing further damage. The warnings sometimes displayed the Microsoft or Microsoft Windows logo, claimed to be a “Windows Support Alert,” or claimed that “Windows” has detected a security vulnerability. The warnings purported to provide a “Microsoft Security Tollfree” number, the “Microsoft Helpline,” or a “Certified Windows Technician.”

When consumers called the telephone number on the pop-up warning, they were routed to the NTS Global Services, Pvt. Ltd. (“NTS Global Services”) call center in the Republic of India, operated and managed by Kapoor. NTS Global Services representatives used false, misleading, and high-pressure sales tactics to defraud consumers. The NTS Global Services representatives remotely accessed a consumer’s computer, conducted fake security diagnostics, and misled consumers by falsely claiming to detect malicious software (including viruses, spyware, malware, and other malicious files), system compromises (such as infections and breaches), and other security vulnerabilities (such as claiming that the system had no security or was NTS Global Services representatives falsely claimed that a consumer’s computer was unprotected by antivirus and security software. NTS Global Services representatives falsely claimed to be affiliated with well-known technology companies, such as Microsoft and Apple, and falsely claimed to be authorized by those companies to service computers. NTS Global Services representatives pressured consumers into purchasing “services” that were expensive and unnecessary. NTS Global Services also deceived consumers into purchasing expensive, multi-year “technical support” packages.

On May 14, 2020, the defendant plead guilty to Count One of the captioned Information charging me with Conspiracy to Commit Wire Fraud in violation of 18 U.S.C. § 1349.

Outcome of Sentencing
On May 11, 2023, the Honorable Phyllis J. Hamilton, Senior United States District Judge, sentenced Jagmeet Singh Virk to 12 months and a day of imprisonment followed by three years of supervised release. Mr. Virk is scheduled to self-surrender to the Bureau of Prisons (BOP) on June 26, 2023. You can access the Bureau of Prisons website at www.bop.gov to obtain the current status of Mr. Virk upon his designation to a BOP facility by searching using his first and last name.

FTC vs NTS IT Care Inc

The Federal Trade Commission is providing full refunds to consumers who lost money to the NTS IT Care tech support scheme, which tricked consumers into buying expensive and unnecessary tech support services and often claimed to be affiliated with Microsoft, Apple, and other tech companies. According to a complaint, they often targeted older Americans and those unfamiliar with computer security.


The refunds stem from a 2020 settlement the FTC reached with NTS IT Care, Inc., and its CEO, Jagmeet Singh Virk. The FTC’s case against Virk and NTS had been under seal until earlier this year pending the outcome of a criminal case involving Virk and NTS brought by the Department of Justice.


“As a recent report to Congress makes clear, the FTC is committed to taking action to protect older consumers from scams like these that have a disproportionate impact on them,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “And, what’s more, the FTC will keep working with DOJ to ensure criminal prosecutions follow criminal conduct.”


In its complaint, the FTC said that NTS lured consumers through alarming and deceptive pop-up warnings that appeared when consumers browsed the Internet and often disabled their browsers. The pop-ups looked like a security alert from the computer’s operating system and falsely claimed that a consumer’s computer had been compromised by malicious software, such as a virus or spyware. The pop-up further stated that the computer had been “blocked,” and that the consumer’s personal information was being stolen. The pop-ups sometimes falsely claimed to be from Microsoft, Apple, or another legitimate tech company and instructed consumers to immediately call a toll-free number for help.


When consumers called the number, the company’s sales representatives ran bogus diagnostic scans to convince consumers that their computers needed immediate repair and used high-pressure and deceptive sales tactics to push consumers to buy multi-year technical support service packages that cost as much as $499. NTS and Virk made millions of dollars from the scheme.


Now, the FTC is using money obtained as part of the settlement to provide payments totaling more than $255,000 to 272 consumers who provided victim statements in the case against Virk and NTS. The average refund amount is $937. Most consumers will receive their payment by check and will have 90 days to cash their checks. Consumers who have questions about the refunds should contact the refund administrator by phone at 866-441-9746 or by email at [email protected].


The settlement imposed a $4.9 million judgment against NTS and Virk, which was partially suspended due to their inability to pay the full amount. In addition, NTS and Virk are permanently prohibited from selling or marketing any tech support service and from benefitting from any personal data they collected from consumers. They are also permanently banned from engaging in misleading telemarketing practices and from trying to collect payments from customers for technical support services they previously sold.

 

 The FTC would like to thank the Department of Justice, FBI, Santa Clara County District Attorney’s Office, the Regional Enforcement Allied Computer Team (REACT Task Force), and the Better Business Bureau of Los Angeles & Silicon Valley for their assistance with this matter.