State sues iYogi, alleges technical support scam

SEATTLE — Washington sued one of the world’s largest independent tech support companies Wednesday, saying it routinely scams customers into buying software and services they don’t need.

Attorney General Bob Ferguson filed the lawsuit against the U.S. operations of iYogi, an India-based company that boasts of 3 million customers and which announced over the summer that it was opening its first U.S. technical support center in Lewiston, Maine. The complaint also names the company’s co-founder and president, Vishal Dhar, of New York, as a defendant.

During a news conference, Ferguson said iYogi representatives often take remote control of the computers of people who seek help, make ominous warnings flash on the screen and then tell them they need to spend money to fix the virus — typically technical support plans costing $150 to $380, or sometimes $80 for antivirus software.

The company also falsely represents that it’s affiliated with major hardware and software companies, including Apple, Microsoft and HP, the complaint said, and even sometimes claims consumers must upgrade from Windows 7 to Windows 10 at a cost of $80 to $199 — even though Microsoft offers the upgrade for free.

“After gaining remote access to the consumer’s computer, iYogi identifies complex-looking files and claims these infected files harm the computer,” Ferguson said. “iYogi misleads the consumer into believing he or she must download iYogi’s diagnostic software to fully identify these alleged computer problems.”

Ferguson said hundreds if not thousands of Washington residents have been scammed by iYogi.

The lawsuit, filed in King County Superior Court, alleges deceptive business practices under the state Consumer Protection Act, violations of which are punishable by $2,000, as well as violations of the state Computer Spyware Statute, which are punishable by fines of $100,000.

An iYogi representative did not immediately return an email seeking comment.