PC users lose $10m to fake computer virus scam

Photo / Thinkstock

Aggressive, relentless telephone scammers have spread their net to nearly a third of New Zealand, siphoning $10 million from people who are conned into thinking their computer has a virus.

Believed to originate in India, the phone scam is the largest ever detected by the Ministry of Consumer Affairs' Scamwatch service, which says one in 20 of those called - tens of thousands of people - has lost money.

Scamwatch spokesman Jarrod Rendle said victims lost a relatively small amount - between $40 and $500 - but the sheer scale of the operation meant it had taken millions from New Zealanders' pockets.

A tally of complaints combined with research found that an estimated 30 per cent of adult New Zealanders had received a cold-call from the con artists.

"Our reports show recipients ... are losing an average of $200 each time. Based on the New Zealand population, up to $10 million could have been swindled out of unsuspecting Kiwis," said Mr Rendle.

The scammers usually claimed to be Microsoft technicians, and tricked people into believing that their computer had a virus.

They then requested remote access to the computer and charged the victim for antivirus software.

Wellington resident Bob Stephens lost $123 after giving his credit card details to a supposedly Microsoft-related service which emailed and then called him.

He said that despite his initial scepticism, he was swayed by the slickness of the scam and the supposed association with a known brand.

"The Microsoft part induced me into going further," Mr Stephens said. "And I'm nearly computer illiterate, so when I saw them opening up what looked like viruses in my computer ... that's the point that I became naive and they became sophisticated.

"When I began to explain it to my wife, I realised, 'Oh, I've been scammed'."

He cancelled his and his wife's credit cards and spent $100 to ensure the scammers had not left harmful software on his computer.

Need-a-Nerd computer worker Martin Beveridge said the scammers were unusually aggressive, especially when rebuffed, and often intimidated people.

The ministry cited cases of people who were initially sceptical but caved in to the con on the scammers' third or fourth attempt.

The calls are reportedly made from internet-based lines in India. They have a weak signal and a timelag.

Microsoft New Zealand says it never cold-calls customers about security incidents.