Alleged 'Scareware' Vendors to Pay $8.2 Million to FTC
Grant Gross writes on ComputerWorld:
The operator of an alleged "scareware" scheme, using deceptive advertising to trick Internet users into buying software to fix their supposedly infected computers, will pay the U.S. Federal Trade Commission $8.2 million to settle a complaint brought by the agency, the FTC said.
Marc D'Souza and his father, Maurice D'Souza, will give up the money in the settlement, announced Thursday by the FTC. Marc D'Souza was one of the key participants in a group of businesses that delivered online advertisements falsely claiming that the viewers' computers were infected with malicious software, the FTC said in a press release.
The FTC will use money from the settlement to reimburse customers who purchased software from the defendants, the agency said.
The defendants in the case, doing business under several company names including Innovative Marketing and ByteHosting Internet Services, falsely claimed that scans had detected viruses, spyware and illegal pornography on consumers' computers, the FTC said. The defendants sold more than 1 million software products, with names such as Winfixer, Drive Cleaner and Antivirus XP, to remove the malware the bogus scans had supposedly detected, the agency added.