Scareware Defendant Fined $163M in FTC Suit
A U.S. judge has imposed a judgment of $163.2 million against a defendant accused by the U.S. Federal Trade Commission of being part of an operation that sold software to people it tricked into thinking their computers were infected with malicious software. Ukrainian operation told computer users their PCs were infected and sold them software to fix the bogus problem.
FTC charged Ross and the other defendants with conning more than 1 million consumers into buying software to remove malware supposedly detected by computer scans. The operation used elaborate and technologically sophisticated Internet advertisements saying that a system scan had detected malicious software and other dangerous files on the computer of the person viewing the ad.
The advertisements then advised computer users to clean off the malware by buying the defendants' software for $40 to $60.Innovative Marketing, founded in mid-2002, grew to employ more than 600 people in the U.S., Ukraine, India and elsewhere,...