FBI Busts 'Scareware' Gang That Bilked Victims Of More Than $100 Million

[Earth Bound Misfit]

http://darkreading.com/insiderthreat/security/antivirus/showArticle.jhtml?articleID=225200545

Global cybercrime scheme yielded sales of more than 1 million phony software purchases from victims in 60 countries

May 28, 2010 | 11:03 AM
By U.S. Department of Justice Federal Bureau of Investigation

CHICAGO -- An international cybercrime scheme caused Internet users in more than 60 countries to purchase more than one million bogus software products, causing victims to lose more than $100 million, according to a federal indictment returned here against a Cincinnati area man and two other men believed to be living abroad. The charges allege that the defendants, through fake advertisements placed on various legitimate companies' websites, deceived Internet users into falsely believing that their computers were infected with "malware" or had other critical errors to induce them to purchase "scareware" software products that had limited or no ability to remedy the purported, but nonexistent, defects. The alleged scheme is widely regarded as one of the fastest-growing and most prevalent types of Internet fraud.

snip

As a result of the browser hijacking, multiple fraudulent scans, and false error messages the defendants and others allegedly deceived victims into purchasing the full paid versions of IM software products, such as "Malware Alarm," "Antivirus 2008," and "VirusRemover 2008." At times, the defendants defrauded victims into purchasing multiple products through a deceptive order screen that kept hidden certain pre-checked option boxes which, when checked, increased the total number of products being purchased, the indictment alleges.

The proceeds of these sales, typically by credit card, were allegedly deposited into bank accounts controlled by the defendants and others throughout the world, and then were transferred to additional bank accounts located in Europe.

The defendants and others allegedly used Byte Hosting to deflect complaints from victims who purchased IM software products. Knowing the products to be fraudulent and distributed and sold under false pretenses, Reno and others caused call center representatives to be instructed to lie to customers about the products and persuade them to remove legitimate pre-existing anti-virus software, the indictment alleges. To persuade the Byte Hosting call center representatives to continue their employment, Reno and others falsely informed them that they were not involved in a fraud scheme because United States law did not apply to IM and its business practices because IM was based overseas. The call center employees were authorized to provide refunds to discourage victims from notifying their credit card companies or law enforcement that they were deceived into purchasing the fraudulent software products, according to the indictment.

Individuals who believe they are victims and want to receive information about the criminal prosecution may call a toll-free hotline, 866-364-2621, ext. 1, for periodic updates.

More at link. Score one for the good guys.

[whistler162]

1. Well that mght curb some of it.......

for a few milliseconds.

[Twillig]

2. If we were China, we'd shoot them.

'Tis a Pity.