Paddle, a UK-based payment processor, recently faced a $5 million fine by the Federal Trade Commission (FTC) for facilitating tech support scams. These scams targeted U.S. consumers with misleading virus alerts, often ensnaring older adults. This blog explores what Paddle did, how these scams operated, and the potential exposure risks to your personal information. Learn how to safeguard yourself against such threats in the future.
What Datapoints Were Leaked?
Tech support scams like the ones Paddle enabled are more than just a nuisance—they’re a direct threat to your personal and financial security. Let’s break down what’s at stake.
Types of Information at Risk
Victims of these scams often end up sharing a lot more than they realize. Here’s what typically gets exposed:
Full Names and Contact Details: Scammers usually trick users into entering their name, email address, and phone number through fake pop-ups or phony tech support chats.
Payment Information: The main goal? Your credit card or bank details. Victims are convinced they need to “fix” their computer immediately, so they hand over their payment info for fake services.
Device Information: Sometimes, remote access tools are installed, giving criminals insight into your device type, operating system, and possibly saved passwords.
Location Data: IP addresses and geolocation can be captured, linking your digital footprint to your physical address.
How Fake Virus Alerts Work
These scams aren’t subtle. You might see a sudden pop-up warning: “Your computer is infected! Call this number now!” The sense of urgency is designed to make you panic, not think. Once you call, a fake technician takes over, convincing you to pay for unnecessary repairs or software.
Scare Tactics: Flashing alerts, loud alarms, and countdown timers are common, all engineered to push you into acting fast.
Remote Access Requests: The scammer may ask you to install software so they can “help.” In reality, this gives them entry to your system and sensitive files.
Unauthorized Charges and Subscriptions
After you hand over your details, the scam doesn’t end. Many victims discover recurring charges or new subscriptions on their bank statements—sometimes months later. It’s not just a one-time hit; your card could be used for ongoing fraud.
Cloaked offers a practical layer of defense here. With disposable card numbers and masked personal information, you can protect your real details even if you accidentally interact with a scam. If something looks off, you simply deactivate the card—no frantic calls to your bank.
Bottom line: If you responded to a suspicious pop-up or paid for questionable tech support, your personal and financial information could be floating in the wrong hands.
Should You Be Worried?
When a fake tech support pop-up flashes on your screen, it’s not just a nuisance. For some, it becomes the start of a financial nightmare. Let’s get straight to who needs to be on high alert and why these scams hit so hard.
Who’s Most at Risk?
Tech support scams prey on people who respond to alarming pop-ups warning of viruses or urgent computer problems. These messages are designed to look legitimate, often mimicking real brands or using urgent language to push you into immediate action.
The typical victim profile looks like this:
Older adults: Scammers often target those who might not be as familiar with digital threats. Many older individuals use computers to stay connected with family or manage finances, making them appealing targets.
Less tech-savvy users: Anyone uncomfortable with troubleshooting computers or unsure about online security is vulnerable.
People under stress: Even the most vigilant can slip up when panicked by warnings of supposed “infections” or threats to their bank accounts.
Why Are Older Adults Targeted?
Scammers see older adults as:
More likely to trust authority: Posing as “Microsoft Support” or “Apple Helpdesk” works better on people who respect official-sounding instructions.
Owning valuable data: Personal information, medical records, and financial details are often accessible on their devices.
Less familiar with online tricks: Pop-ups and fake alerts can seem credible if you haven’t grown up with these threats.
How Big Is the Problem?
This isn’t just a handful of unlucky folks. Millions of dollars move through payment processors like Paddle every year due to tech support scams. That means thousands—sometimes tens of thousands—of people fall for these tricks, paying for fake services, or worse, handing over sensitive information.
Widespread impact: Even if you’ve never clicked a suspicious pop-up, chances are someone you know has.
Financial and emotional toll: Beyond losing money, victims often feel embarrassed or stressed, making recovery even harder.
A Quick Note on Prevention
Services like Cloaked now help users mask their real contact details and payment info online, acting as a safety net if you stumble into risky territory. By using virtual cards and hidden emails, you can avoid giving scammers direct access to your real data—an extra layer of protection when things go sideways.
Stay sharp. Don’t ignore that gut feeling if something feels off. Scammers count on you to panic and click without thinking. You don’t have to play along.
What Should Be Your Next Steps?
Scams and frauds aren’t distant threats—they’re knocking on our doors every day. Acting quickly is your best defense. Here’s how you can take control and protect yourself, step by step.
Spot Fraud Early: Monitor Your Financial Health
Catching fraud starts with vigilance. Small, unfamiliar charges on your bank or credit card statements often signal trouble. Don’t brush off even minor discrepancies—they can snowball.
Check your bank and card statements weekly. Look for any transaction you don’t recognize.
Set up account alerts. Most banks let you receive texts or emails for every transaction.
Report suspicious activity immediately. Contact your bank or card issuer without delay.
Lock Down Your Personal Accounts
A weak password is like leaving your front door wide open. Cybercriminals prey on easy targets, especially when tech support scams trick people into handing over access.
Use strong passwords. Combine uppercase, lowercase, numbers, and symbols. Avoid personal info.
Enable two-factor authentication (2FA). This is a game changer—it adds a critical second lock on your accounts.
Never share your login details. No real company will ask for your password over the phone or email.
With privacy tools like Cloaked, you can generate masked emails and phone numbers. These keep your real contact details hidden when signing up for new services, reducing the risk of identity theft and phishing attempts.
Build a Wall Against Future Scams
Fraudsters are crafty, using pop-ups, fake ads, and unsolicited emails to get your attention. Don’t give them the chance.
Install ad blockers. They cut down on malicious pop-ups and phishing attempts.
Ignore unsolicited pop-ups. Never click “OK” or call phone numbers from unexpected warnings, especially those claiming your computer has a virus.
Update your devices regularly. Security patches fix vulnerabilities scammers exploit.
Be skeptical. If something feels off—a caller in a hurry, an urgent pop-up—trust your gut and double-check.
Being proactive isn’t just smart—it’s necessary. Take these steps seriously, and you’ll shut most doors scammers use to get in.
Cloaked FAQs Accordion
Frequently Asked Questions
Cloaked is a privacy-first tool that lets you create secure aliases for emails, phone numbers, and more—shielding your real identity online. With Cloaked, your personal info stays protected from breaches, scams, and tracking.
Look for urgent messages, unfamiliar links, or strange sender addresses. With Cloaked aliases, it’s easier to identify which site may have leaked your contact details and ignore suspicious communications.
Yes. If a Cloaked alias starts receiving spam, you can pause, delete, or rotate it. This eliminates the need to change your real email or phone number.
They do different jobs. VPNs protect browsing. Password managers secure logins. Cloaked protects your real identity at the contact level—emails, phones, and personal identifiers.
Definitely. Use Cloaked aliases to avoid spam and limit exposure to companies that may mishandle or leak your data.
At Cloaked, we believe the best way to protect your personal information is to keep it private before it ever gets out. That’s why we help you remove your data from people-search sites that expose your home address, phone number, SSN, and other personal details. And to keep your info private going forward, Cloaked lets you create unique, secure emails and phone numbers with one click - so you sign up for new experiences without giving away your real info. With Cloaked, your privacy isn’t a setting - it’s the default. Take back control of your personal data with thousands of Cloaked users.
*Disclaimer: You agree not to use any aspect of the Cloaked Services for FCRA purposes.
