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FTC Gets Court to Freeze Scareware Operations

Posted by Kara Reeder Dec 11, 2008 10:54:50 AM

The FTC is asking a court to shut down two businesses it says are behind a massive scareware scam, reports vnunet.com.

 

According to The Inquirer, the FTC claims Innovative Marketing, Inc. and ByteHosting Internet Services, LLC falsely represented themselves to Web sites as legitimate advertisers. But the companies' ads actually told users that computer scans had detected malware and duped them into buying expensive but worthless "security" software. Millions of users have shelled out $39.95 or more for products such as WinFixer, WinAntivirus, DriveCleaner, ErrorSafe and XP Antivirus.

 

Network World says the U.S. District Court for the District of Maryland has frozen the activities of both companies. The FTC wants the companies to reimburse those people fooled by the scam, but that may prove difficult: Innovative Marketing is incorporated in Belize and maintains offices in Kiev, Ukraine.

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