If you've ever seen your computer act like the image above, or something similarly scary where it claims your computer has been hacked, chances are you haven't been hacked yet. This really is the first step of a social engineering hack, and what you do afterwards may be where the so-called hackers get you.
These Technical Support Scams work by convincing you that you need help, getting you to pay for said help, and them likely doing absolutely nothing, or simply provide instructions on how to close a window on your desktop. It's not really that much more elaborate than the nigerian prince scam, since the actual hack is what they do over the telephone.
That said, sometimes these people can encounter someone much smarter than themselves. An actual hacker that can hack into their CCTV system and literally watch >them< while they try to scam him over the phone. This is expert-level exposing, the kind you would expect to see on 60 Minutes or CNN. Except it's on Youtube.
Here's the first part. It's fascinating!
JoseQ's Look at this Thing
Part of my job involves dealing with the effects of hackers on legitimate businesses. My own company has been the target of devilish individuals. It is mind blowing to see some of the stuff they come up with. Some more elaborate than others, but all malicious in the end. Simply put, the world would be a better place without these people who put their minimal personal benefit over the hard work of others. It gives me strange pleasure to watch the tables flipped on them.