The Federal Trade Commission today got a court to at least temporarily halt a massive "scareware" scheme, which falsely claimed that scans had detected viruses, spyware, and pornography on consumers' computers.
According to the FTC, the scheme has tricked more than one million consumers into buying computer security products such as WinFixer, WinAntivirus, DriveCleaner, ErrorSafe, and XP Antivirus. The court also froze the assets of Innovative Marketing, Inc. and ByteHosting Internet Services, LLC to preserve the possibility of providing consumers with monetary redress, the FTC stated.
The defendants used an elaborate ruse that duped Internet advertising networks and popular Web sites into carrying their advertisements, according to the FTC's complaint. The defendants falsely claimed that they were placing Internet ads on behalf of legitimate companies and organizations. But due to hidden programming code that the defendants inserted into the advertisements, consumers who visited Web sites where these ads were placed did not receive them, the FTC said. Instead, consumers received exploitive advertisements that took them to one of the defendants' Web sites. These sites would then claim to scan the consumers' computers for security and privacy issues. The "scans" would find a host of purported problems with the consumers' computers and urge them to buy the defendants' computer security products for $39.95 or more. However, the scans were entirely false, the FTC said
Innovative Marketing is incorporated in Belize and maintains offices in Kiev, Ukraine. ByteHosting Internet Services is based in Cincinnati, Ohio. The FTC complaint alleges that these two companies, along with individuals Daniel Sundin, Sam Jain, Marc D'Souza, Kristy Ross, and James Reno, violated the FTC Act. The complaint also names a sixth individual, Maurice D'Souza, as a relief defendant who received proceeds from the scheme.
Under US District Court for the District of Maryland order, the defendants are barred from falsely representing that they have run any type of computer analysis, or that they have detected security or privacy problems on a consumer's computer. They also are barred from using domain names obtained with false or incomplete information, placing advertisements purportedly on behalf of a third party without that party's consent, or otherwise attempting to conceal their own identities. The order also mandates that companies hosting the defendants' Web sites and providing domain-registration services take the necessary steps to keep consumers from accessing these Web sites, the FTC said.
The FTC seeks to permanently bar the defendants from engaging in "scareware" marketing and pay for any damages and ill-gotten booty.
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Hang em
by the thumbs
I see these programs every
I see these programs every day at work (I do tech support for an Antivirus/Antispyware product).
Since they are barred from doing business, how do I report when I see these programs on the computer (as it would be a violation of that bar).
I love the freakin' FTC.
I *just spent like 2 f'in hours removing this sh*t from my parents' computer today. I'd love to see these pr*cks strung up and executed for this extortion. This'll have to do.
How do you remove the infected files/programs?
One of my computers apparently has been infected with whatever this does. My browser (firefox and IE both) takes me to unwanted sites whenever I click on a link from google. This does not happen on my other computer, so it must be something on my first computer that is infected.
I installed Norton AV, but it could not perform its live update because it could not connect to symantec.com. I also installed Ad-aware, but it could also not do its own update because it could not connect to lavasoft.com. If I type either symantec.com or lavasoft.com into my web browser, it says the server is not responding, but I can get to those sites from my "good" computer, and I can get to other sites on my "bad" computer. There is some smart virus or something that prevents my computer from accessing anti-virus software sites.
Help!
I've been battling this crap
I've been battling this crap software for ages now. If these people don't deserve to get hung out to dry then no one does.
Don't just freeze their assets - return the funds to the poor folks that paid them and then fine them the exact same amount.
Authors of this software deserve no less. Maybe the next time around they'll get real jobs.
Finally! These B@stards have
Finally! These B@stards have been hacking many sites to plug in their bogus/rogue software. Just a few weeks ago I had to kick my hosting service to plug their security holes... which enabled these guys to hack my htaccess file. I hope these pricks burn!
Jail is too good for these guys
What they actually write are viruses. Why haven't they been arrested? Jail is too good for them. Hanging is too good for them. Hell being tortured at Gitmo for the rest of what I hope would be their short lives is too good for them.
I actually have spent more time as IT professionally dealing with their scareware then all other viruses put together.
Its good that this has been
Its good that this has been brought to an end(at least for the time being). But torture them? Hang them? Lol Its just a piece of malware, if some of you IT guys have a hard time removing it then you are probably in the wrong field. There are far more worse viruses than this. Its deceptive but with all due respect the people who fall for it are idiots. If it was a free product I'd understand, but paying for a rogue antivirus without even doing any research on it is their own fault.
Well, I just hope this
Well, I just hope this doesn't affect my job security (Kidding).
Over the past four years I have put in countless hours (while charging the poor users about half of the actual time involved) plucking this nonsense from their systems - I'm actually good at it.
Seriously though, I suspect that these miscreants will find some other way to get around these (rather weak) injunctions laid down by the FTC and just find another way to peddle their wares.
I read somewhere that they made about 11 Billion in recent years. Anyone here make their first 100K in cleaning it up?
Paltry!
I use Ubuntu exclusively, and quit doing even paid Windows repair work over a year ago, so I haven't had to deal with this. It's getting hard to find anyone where I live willing to fix windows boxes, everyone I know that is good enough at computers to do this kind of work is abandoning windows in favor of Ubuntu or Mac OSX. I advise everyone to do the same.
BUT, this FTC action is pathetic
1) They're already blatantly breaking the law... forcing Windows to run code (to pop up a window claiming you have viruses etc.) is illegal. Making the false claim itself is illegal. Selling software that does nothing is illegal. What difference does ignoring an FTC order make on top of all that?
2) If they behave like spammers, they'll tie up court or FTC time making the most twisted and convoluted arguments on how what they were doing technically wasn't what the FTC claims. They'll continue doing it, while making more convoluted arguments on how they technically aren't violating the FTC's order because they, ohh I don't know, shuffled ownership around, changed the software and domain names slightly, or some such excuse.
3) Without a LARGE fine at the minimum, this gives NO disincentive for others thinking of doing the same. Any scammer can give themselves a blank check, and the only risk is they're told not to do it any longer? Ridiculous.
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