A global payment processor has agreed to pay $4.85 million to settle Federal Trade Commission allegations that it provided payment services to merchants engaged in fraud, including tech support schemes that took millions of dollars from consumers. The FTC announced the proposed settlement with Canada-based Nuvei Corporation and several subsidiaries on September 4. According to the agency’s complaint, Nuvei opened and maintained payment processing accounts for merchants it knew or should have known were engaged in deceptive practices. The $4.85 million payment is expected to be used for consumer redress.
FTC Says Nuvei Processed More Than $30 Million for Reimage
One of the central merchants identified in the FTC complaint is Reimage, an offshore tech support operation that also did business under the Restoro name. The FTC alleges Nuvei processed more than $30 million in credit card charges for Reimage between 2017 and 2023.
Reimage allegedly used deceptive advertising and computer warnings to frighten consumers into believing their devices had viruses, security problems or performance issues. Consumers were then encouraged to pay for software or tech support services they didn’t need. The FTC previously pursued Reimage and Restoro directly, resulting in millions of dollars being returned to affected consumers.
Nuvei Allegedly Continued Processing Despite Warning Signs
The FTC complaint goes beyond alleging that a fraudulent merchant simply slipped through a payment processor’s screening system. According to the complaint, Nuvei’s own policies were supposed to restrict merchants with known fraudulent activity, excessive chargebacks or unclear ownership.
FTC officials allege Nuvei nevertheless continued processing transactions for Reimage despite receiving complaints and encountering internal warning signs about the business. The complaint also alleges that Nuvei helped Reimage obtain and maintain access to payment processing in ways that avoided scrutiny from banks and credit card networks.
Nuvei has agreed to settle the allegations, but the FTC case remains pending and the allegations haven’t been established through a final court judgment.
Other Questionable Merchants Allegedly Received Accounts
Reimage isn’t the only merchant identified in the FTC’s case. The agency alleges Nuvei Technologies Inc., a U.S.-based subsidiary, opened or maintained merchant accounts for companies accused of selling business opportunities using false or unsupported earnings claims. The complaint also cites merchants accused of impersonating government tax authorities.
Some merchants had allegedly already been terminated by other payment processors or acquiring banks because of excessive chargebacks or suspected fraud. The FTC previously brought separate enforcement actions against businesses identified in the Nuvei complaint, including DK Automation and American Tax Service.
Settlement Would Change How Nuvei Screens Merchants
The proposed settlement goes beyond the $4.85 million monetary payment. Nuvei would be prohibited from processing payments for businesses selling tech support products or services through telemarketing or certain pop-up messages claiming a computer or other device has security or performance problems. The company would also be prohibited from making false or misleading statements to obtain merchant accounts and from using tactics designed to circumvent fraud or risk-monitoring programs.
Nuvei would have to strengthen screening and monitoring of prospective and existing clients, particularly merchants in higher-risk categories such as outbound telemarketing. The order also requires enhanced scrutiny of existing clients when their chargeback rates exceed limits established by the settlement.
A Credit Card Payment Doesn’t Prove a Company Is Legitimate
The case carries an important lesson for consumers: the ability to accept a major credit card doesn’t guarantee that a business has been thoroughly vetted or that its claims are legitimate. Payment processors and acquiring banks are important parts of the infrastructure that allows merchants to accept credit and debit card payments.
That’s one reason the FTC has increasingly scrutinized companies that allegedly continue providing payment services when warning signs suggest a merchant may be harming consumers. Someone who encounters a computer pop-up claiming a device is infected shouldn’t assume the company offering to fix the supposed problem is trustworthy simply because the website accepts Visa, Mastercard or another familiar payment method.
Consumers should independently verify computer-security warnings rather than calling phone numbers or clicking payment links supplied through unexpected pop-ups.
What to Do If You Paid a Tech Support Scammer
Consumers who believe they paid for fraudulent tech support should act quickly. Contacting the card issuer may provide an opportunity to dispute a charge, depending on the circumstances and how recently the payment occurred.
Consumers should also consider changing passwords if they gave the supposed technician access to accounts or allowed remote access to their computer. If a scammer gained remote access, disconnecting the device and having it evaluated by a trusted security professional may also be appropriate.
Suspected fraud can be reported directly to the Federal Trade Commission, and consumers should keep receipts, emails, screenshots and transaction records that document what happened.
The Nuvei case illustrates why the FTC isn’t focusing solely on the people who allegedly operate scams. Regulators are also looking at the financial infrastructure that allows questionable merchants to collect money from consumers in the first place.
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Amanda Blankenship is Chief Editor at District Media, Inc., leading content strategy, quality assurance, and editorial operations across high-traffic personal finance sites like SavingAdvice.com and CleverDude.com. A Wingate University graduate with a BA in Communications (Journalism focus), she brings over a decade of experience in digital publishing, writing, and team leadership in the personal finance space.
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