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Fake Antivirus Ringleader Must Pay $163 Million
informationweek ^ | October 03, 2012 | Mathew J. Schwartz

Posted on 10/05/2012 3:03:41 PM PDT by JoeProBono

Acting on a Federal Trade Commission complaint, a federal court has imposed a $163 million judgment on a woman who allegedly helped run a scareware ring that tricked over one million consumers across six countries into purchasing fake security software.

That decision, announced by the FTC Tuesday, came after a two-day bench trial last month. U.S. District Judge Richard D. Bennett, who presided over the case, also wrote in his related judgment that the defendant, Kristy Ross, "shall be permanently restrained and enjoined from the marketing and sale of computer security software and software that interferes with consumers' computer use as well as from engaging in any form of deceptive marketing."

The fake software in question--often referred to as scareware, fake antivirus, or fake AV--is part a social-engineering scam designed to trick users into thinking their PC contains viruses, system errors, spyware, or pornography. The software then advertises information security software to help, which is available for immediate download. But in reality, the results of the system scan, as well as security software's cleaning power, is fake.

According to the FTC, Kristy Ross, together with defendants Sam Jain, Daniel Sundin, Marc D'Souza, and James Reno, served as officers and directors of two businesses: Belize-based Innovative Marketing, Inc. (IMI), and a subsidiary, Cincinnati-based ByteHosting Internet Services. The businesses were used "to conduct a massive 'scareware' scheme that marketed a variety of computer security software via deceptive advertising."

According to the FTC, the operation "used elaborate and technologically sophisticated Internet advertisements placed with advertising networks and many popular commercial websites," which purported to display the results of a "'system scan' that invariably detected a host of malicious or otherwise dangerous files and programs on consumers' computers." The scanner then urged consumers to buy software, priced between $40 and $60, to remediate the issue.......


TOPICS: Computers/Internet
KEYWORDS: scareware

1 posted on 10/05/2012 3:03:47 PM PDT by JoeProBono
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To: JoeProBono

give me a half hour alone with them and a baseball bat...


2 posted on 10/05/2012 3:09:07 PM PDT by Mr. K ("The only thing the World would hate more than the USA in charge is the USA NOT in charge")
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To: JoeProBono

It’s called fraud and, yes, it is illegal.


3 posted on 10/05/2012 3:10:19 PM PDT by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: JoeProBono

and they GIVE you a virus to boot

How many are still doing this out there?


4 posted on 10/05/2012 3:24:27 PM PDT by GeronL (http://asspos.blogspot.com)
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To: OneWingedShark

No there are any number of FReepers who (if they got the cajones) explain to you that this is free enterprise and just part of the way the free market works and the government putting this poor woman out of business and on trial is just the government’s attempt to control the markets and swamp business with needless regulation. All business are honest as long as they are taking someone else’s money.


5 posted on 10/05/2012 3:26:43 PM PDT by Kartographer ("We mutually pledge to each other our lives, our fortunes and our sacred honor.")
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To: JoeProBono

Fake antivirus includes most commercial products out there, not least my old and murderous enemy Norman.


6 posted on 10/05/2012 3:27:05 PM PDT by Hardraade (http://junipersec.wordpress.com (I will fear no muslim))
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To: JoeProBono

Good. Now they can go after Rachel of Card Services.


7 posted on 10/05/2012 3:33:21 PM PDT by Fresh Wind ('People have got to know whether or not their president is a crook.' Richard M. Nixon)
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To: JoeProBono
The scanner then urged consumers to buy software, priced between $40 and $60, to remediate the issue....

I assume this is another class action lawsuit with the bulk payment going to the attorneys and not the victimized consumers.

8 posted on 10/05/2012 3:34:43 PM PDT by a fool in paradise (Obama likes to claim credit for getting Osama. Why hasn't he tried Khalid Sheikh Mohammed yet?)
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To: Mr. K

“give me a half hour alone with them and a baseball bat...”

Thou art a kind and forgiving soul.

I humbly suggest staking them (and all malware writers) out on a fire ant mound, but removing the bachelor’s chillen before death. Repeat as long as possible.


9 posted on 10/05/2012 3:38:09 PM PDT by GladesGuru (In a society predicated upon freedom, it is necessary to examine principles."...the public interest)
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To: Hardraade

10 posted on 10/05/2012 3:47:45 PM PDT by JoeProBono (A closed mouth gathers no feet - Mater tua caligas exercitus gerit ;-{)
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To: Mr. K

11 posted on 10/05/2012 3:53:18 PM PDT by JoeProBono (A closed mouth gathers no feet - Mater tua caligas exercitus gerit ;-{)
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To: JoeProBono

Lol. It wouldn’t surprise me, the incest in these outfits are worse than the Saudi family.

Norman bought a ceo from symantec a couple years ago, that was basically a case of the Beagle Boys throwing out Granny and getting a Gambino.

Threw him out again, back to the Oracle hand in the till.


12 posted on 10/05/2012 4:07:23 PM PDT by Hardraade (http://junipersec.wordpress.com (I will fear no muslim))
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To: Mr. K

+1 !


13 posted on 10/05/2012 4:19:29 PM PDT by Vendome (Don't take life so seriously, you won't live through it anyway)
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To: JoeProBono

Some of those programs were a royal pain to remove- the first one I encountered took me three hours to clean out as most of them block the installation of AV software. I did earn a fair chunk of change, though, because at one point I was getting several calls a week to clean infected PCs. Nice as that was, I’d rather be doing something productive.


14 posted on 10/05/2012 4:51:18 PM PDT by Squawk 8888 (True North- Strong Leader, Strong Dollar, Strong and Free!)
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To: a fool in paradise

The scanner then urged consumers to buy software, priced between $40 and $60, to remediate the issue....

I assume this is another class action lawsuit with the bulk payment going to the attorneys and not the victimized consumers.

***

Still better than them getting away with it scot-free.


15 posted on 10/05/2012 4:55:58 PM PDT by ROTB (Live holy, forgive all & pray in Jesus' name. Trust He is willing & able & eager to ANSWER BIG!)
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To: Kartographer

LOL - Thanks; that’s a good laugh.


16 posted on 10/05/2012 5:09:22 PM PDT by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: JoeProBono

I’ve dealt with this one on 2 different machines - it’s a royal pain to get rid of.


17 posted on 10/05/2012 7:47:37 PM PDT by Some Fat Guy in L.A. (Still bitterly clinging to rational thought despite it's unfashionability)
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To: JoeProBono

My mother clicked on some similar deal several years ago and the damn thing was almost ineradicable from her computer. I’d say that qualifies as a rootkit virus itself.

Don’t remember the name, but none of these was the one. I’ve been wondering if these “Clean my Pc” ads lately aren’t something similar.

All forms of virus, rootkits and trojans should qualify their developers for the death penalty.


18 posted on 10/06/2012 1:52:15 PM PDT by wildbill (You're just jealous because the Voices talk oMnly to me.)
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