Major scamware creator fined $163 million by U.S. authorities

Pill Monster

Quote:

Software scam artist Kristy Ross has been fined $163 million by U.S. authorities for running an unscrupulous "scareware" operation. The Federal Trade Commission had been following Ross since 2008 in hopes of closing in on her dealings and the judgment includes six others involved in her illicit scheme.

Ross is believed to be the mind behind nefarious "utilities" like WinAntiVirus, Winfixer, FreeRepair, DriveCleaner and System Doctor. These applications would pose as legitimate utilities, but led unsuspecting users to falsely believe their PCs were suffering from critical system issues like virus infections. The programs would then offer to solve those imaginary problems for a one-time fee -- an amount typically between $40 and $60. The FTC described Ross' scamware approach as "elaborate" and "technologically sophisticated".

The FTC article, "Free Security Scan" Could Cost Time and Money, explains how these types of scams work.

The hefty $163 million fine is largely due to the massive proliferation of aforementioned scamware. The imposter utilities managed to snatch over one million paying customers -- yep, one million -- who believed buying Ross' software would help alleviate their purported PC problems. In addition to the fine, Ross has also been barred from selling certain types of computer software and is now prohibited from engaging in deceptive marketing.

In the past, criminal outfits busted for similar antics have been forced to return a portion of their ill-gotten gains. The FCC cites Marc D'Souza's family-run malware operation as an example: they were ordered to repay $8.2 million of their revenue to victims in 2011.

Source.

More than once I've had to remove WinAntiVirus and WinFixer from infected computers, which is why this article caught my eye.

Good to see justice being served....

MerolaC · 10-06-2012, 22:18 | posts: 1,990 | Location: Argentina

Same here.
I had those too on infected clients computers.

Agreed with you.

CronoGraal · 10-06-2012, 22:21 | posts: 3,450 | Location: Sweden

"and is now prohibited from engaging in deceptive marketing"

lmfao what, isn't everyone supposed to be prohibited from doing that?

PhazeDelta1 · 10-06-2012, 22:41 | posts: 9,527 | Location: 90° N

Quote:

Originally Posted by CronoGraal

"and is now prohibited from engaging in deceptive marketing"

lmfao what, isn't everyone supposed to be prohibited from doing that?

Apparently not. Alot of companies out there are guilty of deceptive marketing.

airbud7 · 10-06-2012, 22:41 | posts: 2,065 | Location: Evans Ga,USA

Quote:

Originally Posted by CronoGraal

"and is now prohibited from engaging in deceptive marketing"

lmfao what, isn't everyone supposed to be prohibited from doing that?

Yea...I thought so too...

Finchwizard

I remember these types of software being fined before. Then they just changed their names and kept going.

They'll just say they're bankrupt and never pay. And start all over again with a new name.

Neo Cyrus · **Memory**: 6GB DDR3-2000 9-9-9-24-1T

Quote:

Originally Posted by Finchwizard

I remember these types of software being fined before. Then they just changed their names and kept going.

They'll just say they're bankrupt and never pay. And start all over again with a new name.

Well then they should get prison time.

Finchwizard

Quote:

Originally Posted by Neo Cyrus

Well then they should get prison time.

Most definitely.

hallryu · 10-07-2012, 00:01 | posts: 10,879 | Location: England

It's a Fraud, pure and simple.

Send the twats to prison.

volkov956 · 10-07-2012, 00:15 | posts: 5,914 | Location: Канад

Does dance but then sees the already large number of other similar things already there well good deterence unless u the perpetrator is in one of the OTHER countries that you wont get in trouble

Pill Monster · 10-07-2012, 00:23 | posts: 20,851 | Location: NZ

Quote:

Originally Posted by hallryu

It's a Fraud, pure and simple.

Send the twats to prison.

Totally agree. I don't get why there is no jail time mentioned....

sykozis · 10-07-2012, 00:59 | posts: 13,628 | Location: US East Coast

Yet you said justice was served.....

As long as people like this are still breathing, justice hasn't been served....

randomizer · 10-07-2012, 01:02 | posts: 808 | Location: Australia,melbourne

Sounds like deceptive marketing is legal in America.

Pill Monster · 10-07-2012, 01:04 | posts: 20,851 | Location: NZ

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Originally Posted by sykozis

Yet you said justice was served.....

That was before I realized they didn't get jail...or maybe that court case is still to come?

Neo Cyrus · **Memory**: 6GB DDR3-2000 9-9-9-24-1T

I find it hard to believe that they would not get any prison time for such a massive scam.

Pill Monster · 10-07-2012, 01:15 | posts: 20,851 | Location: NZ

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Originally Posted by Neo Cyrus

I find it hard to believe that they would not get any prison time for such a massive scam.

I'm sure they will....dunno what the procedure is in the US - maybe they'll be charged and a court case will follow?
Idk...

sykozis · 10-07-2012, 01:16 | posts: 13,628 | Location: US East Coast

Quote:

Originally Posted by randomizer

Sounds like deceptive marketing is legal in America.

legal, no....but it's tolerated because it's the only way some companies can stay in business. Would you buy a car if it's manufacturer openly admitted that it's a pile of ****?

Quote:

Originally Posted by Pill Monster

I'm sure they will....dunno what the procedure is in the US - maybe they'll be charged and a court case will follow?
Idk...

If they were fined....it's over unless they violate the orders they were given...

Pill Monster · 10-07-2012, 01:20 | posts: 20,851 | Location: NZ

Quote:

Originally Posted by sykozis

legal, no....but it's tolerated because it's the only way some companies can stay in business. Would you buy a car if it's manufacturer openly admitted that it's a pile of ****?

Obviously it's not tolerated or they wouldn't have been investigated and fined by the FTC.

Quote:

Originally Posted by sykozis

If they were fined....it's over unless they violate the orders they were given...

I find that very hard to believe.
More likely the FTC doesn't have the power to hand out sentences or else they haven't been officially charged by the police - yet.

sykozis · *Last edited by sykozis; 10-07-2012 at 01:27.*

"Deceptive Marketing" is a regulatory violation....which is enforced by the FTC. Had they decided to charge them with something like Fraud....it would be a criminal matter. Basically, the FTC either decided they didn't have enough evidence or they were short on funding.... Since the FTC decided to fine them under a regulatory violation, it's done and over with. No, the FTC doesn't have the authority to do anything but hand out fines for "regulatory violations". They do have the authority to file criminal charges through the US DoJ though. They can not hand out jail/prison sentences themselves though.

lmimmfn · 10-07-2012, 01:28 | posts: 9,270 | Location: Ireland

as long as there are idiots out there that will pay $40-$60 for these fake utilities then more and more Kristy Ross types will keep on appearing.

Ive had to clean that crap off PC's also, but you cant legislate or enforce against stupidity. Simple google searches for utilities will tell if theyre semi dodgy or not.

NoviceRei · 10-07-2012, 02:21 | posts: 2,134 | Location: Philippines

Quote:

Originally Posted by PhazeDelta1

[snip] Alot of companies out there are guilty of deceptive marketing.

+1

macdaddy · 10-07-2012, 08:41 | posts: 2,298 | Location: AUSTRALIA

what a about calls i'm getting form india saying they are microsoft reps and something is wrong with my pc and he was calling to help me solve it. I played along and in the end i gave the phone to my 6 year old to repeat to him " This is where i install the keylogger or trojan.".

Pill Monster · 10-07-2012, 09:09 | posts: 20,851 | Location: NZ

Quote:

Originally Posted by macdaddy

what a about calls i'm getting form india saying they are microsoft reps and something is wrong with my pc and he was calling to help me solve it. I played along and in the end i gave the phone to my 6 year old to repeat to him " This is where i install the keylogger or trojan.".

Regulators crack down on telemarketing scareware scammers

IcE · 10-07-2012, 10:35 | posts: 7,095 | Location: Toledo, Ohio

I'm glad she got fined out the ass, but why are people suggesting jail time? Yeah, it was a scam, but it was one entirely dependent on user stupidity to succeed. There are so many of these types of things in the world. It was just someone preying upon ignorant people. It's unethical, but hardly deserving of jail time. The jails are overflowing enough as it is.

hallryu · 10-07-2012, 10:47 | posts: 10,879 | Location: England

Quote:

Originally Posted by IcE

I'm glad she got fined out the ass, but why are people suggesting jail time? Yeah, it was a scam, but it was one entirely dependent on user stupidity to succeed. There are so many of these types of things in the world. It was just someone preying upon ignorant people. It's unethical, but hardly deserving of jail time. The jails are overflowing enough as it is.

Do not confuse stupidity with ignorance of otherwise technical matters. This was as much a fraud as the ponzi investment scandals.