FraudNews
10-06-2012, 12:46 AM
U.S. officials cracking down on virus-cleaning scams fines another company for its role in the “scareware” computer scam to trick customers into thinking their computer was infected with viruses. According to the Federal Trade Commission, a $163 million judgment was levied against Innovative Marketing.
According to the FTC, the court also ruled that Kristy Ross, an employee with the company, could not sell computer security software or any software that impedes with computer use. Ross maintains that she was not the control person and had no knowledge of what was going on.
The FTC said defendants were using “scareware” to frighten consumers into thinking their computers were infested with malevolent software, in an effort to sell them a software program – even when it turned out they had no issue with malicious software.
In 2008, the agency charged seven defendants – Ross included –with duping over one million customers into purchasing software they really did not need. The FTC said the defendants used advertisements that did a “system scan” that always showed that the consumers’ computers were infected, scaring them into buying $40 to $60 anti-virus software.
The scheme was stopped by the U.S. District Court in Maryland, where defendants Maurice D’Souza and Marc D’Souza have been ordered to pay $8.2 million in company revenues. Two more defendants settled their charges while the FTC obtained default judgments against the remaining case defendants. They also held the assets of other alleged scammers who had deceived consumers into paying for fictitious computer virus programs.
According to the FTC, the operations took place mainly in India and targeted people in Australia, Canada, Ireland, New Zealand, United Kingdom and the United States.
According to the FTC, the court also ruled that Kristy Ross, an employee with the company, could not sell computer security software or any software that impedes with computer use. Ross maintains that she was not the control person and had no knowledge of what was going on.
The FTC said defendants were using “scareware” to frighten consumers into thinking their computers were infested with malevolent software, in an effort to sell them a software program – even when it turned out they had no issue with malicious software.
In 2008, the agency charged seven defendants – Ross included –with duping over one million customers into purchasing software they really did not need. The FTC said the defendants used advertisements that did a “system scan” that always showed that the consumers’ computers were infected, scaring them into buying $40 to $60 anti-virus software.
The scheme was stopped by the U.S. District Court in Maryland, where defendants Maurice D’Souza and Marc D’Souza have been ordered to pay $8.2 million in company revenues. Two more defendants settled their charges while the FTC obtained default judgments against the remaining case defendants. They also held the assets of other alleged scammers who had deceived consumers into paying for fictitious computer virus programs.
According to the FTC, the operations took place mainly in India and targeted people in Australia, Canada, Ireland, New Zealand, United Kingdom and the United States.