FTC squashes scareware operation that tricked over a million users into losing money for fake software.

12/11/08

Finally!

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.

You may have read my article "pc wolves in sheep's clothing" either here or on the Hur Herald.

Messages telling you to install and update security software for your computer seem to be everywhere. So you might be tempted by an offer of a “free security scan,” especially when faced with a pop-up, an email, or an ad that claims “malicious software” has already been found on your machine. Unfortunately, it’s likely that the scary message is a come-on for a rip-off.

It appears the FTC has finally gotten enough complaints to get the ball rolling on squashing these scammers.

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.

Hopefully the Antivirus2009 deal will soon be added to the list.

Read more about the FTC's Case here.

I'll repeat again the scenario that gets people infected with this type of 'legitimate looking' malware.

Your minding your own business browsing the internet, when all of a sudden you get a popup window that tells you that an infection has been detected on your computer.  You are then directed to download a 'free' scanning program to further inspect/scan your computer.  Many users blindly click to do the scan because they have been tricked with the fear factor, that their computer is infected.  The 'rogue' software is then installed by the user, and it runs and appears to be scanning your computer and finding all kinds of malware.  The program lists a long list of legitimate looking results, and then proceeds to tell you that to actually remove any of these (albeit fake) infections, that you must purchase the full version of the software.

The software will pop up repeatedly interrupting anything you are doing after this point, constantly trying to scare you into thinking you have a severe infection.  In fact, you do have an infection.. the infection is this scanning program itself, it itself is malware.  The program looks very professional, very legitimate, but in reality it is a fake program who's only purpose is to scare you into sending your money to the scammers.  For those who purchase these programs, your money will either disappear into the twilight zone, or you will receive a 'full version' of the software, which is also a fake, that acts like it is removing the malware.  But in fact is doing absolutely nothing but flashing random text on your screen with legitimate malware names attached, making you think that you have a really good product..   again these products look real.. but are not.

Read more about the FTC's Case here.

NOTICE