Congratulations FTC: Internet Heroes
Next week’s Cyber Risk Report (CRR) will cover the successful prosecution of a gang of Internet criminals by the United States Federal Trade Commission (FTC). Their scam was selling “scareware,” bogus computer security software, including “Antivirus XP 2008,” from 2003-2008. One of the co-defendants had in 2005 been ordered to pay Symantec 3.1 million dollars in compensation for selling pirated copies of its popular Norton brand. Last week, the first of the defendants in the case settled with the FTC for the entirety of his assets less legal fees, a sum amounting to $116,697, in lieu of a much larger judgement of 1.9 million dollars. The other defendants will have their days in court starting in July, barring any continuances.

The defendants used interactive advertisements that suggested that they had scanned a victim’s PC and found malware, tracking cookies and pornography that did not exist but that could be removed for $39.95. If the initial approach was unsuccessful, the rogue anti-virus software would alter search engine results to include false warnings of spyware infections and would display pop-ups to the user warning of data loss.


Posted by Henry Stern at 10:09AM PST

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