Scam scareware
Internet Security bloggers/writers use the term "scareware" to describe software products that produce frivolous and alarming warnings or threat notices, most typically for ficticious or useless commercial firewall and registry cleaner software. This class of program tries to increase its perceived value by bombarding the user with constant warning messages that do not increase its effectiveness in any way. Software is packaged with a look and feel that mimics legitimate security software in order to deceive consumers.
Some websites display pop-up advertisement windows or banners with text such as: "Your computer may be infected with harmful spyware programs. Immediate removal may be required. To scan, click 'Yes' below." These websites can go as far as saying that a user's job, career, or marriage would be at risk. Products using advertisements such as these are often considered scareware. Serious scareware applications qualify as rouge software.
In recent findings some scareware is not affiliated with any other installed programs. A user can encounter a pop-up on a website indicating that their PC is infected. In some scenarios it is possible to become infected with scareware even if the user attempts to cancel the notification. These popups are especially designed to look like they come from the user's operating system when they are actually a webpage.
In 2005, Microsoft and Washington State successfully sued Secure Computer (makers of Spyware Cleaner) for $1 million over charges of using scareware pop-ups. Washington's attorney general has also brought lawsuits against Securelink Networks, High Falls Media and the makers of Quick Shield.
In October 2008, Microsoft and the Washington Attorney General filed a lawsuit against two Texas firms, Branch Software and Alpha Red, producers of the Registery Cleaner XP Scareware. The lawsuit alleges that the company sent incessant pop-ups resembling system warnings to consumers' personal computers stating "CRITICAL ERROR MESSAGE! - REGISTRY DAMAGED AND CORRUPTED", before instructing users to visit a web site to download Registry Cleaner XP at a cost of $39.95.
On June 25, 2009, the Federal Trade Commission in the United States reached a settlement with two defendants in a case involving a massive “scareware” scheme. The two defendants settled charges of deceptive advertising and forfeited more than $100,000 in assets. According to the Federal Trade Commission, the two settling defendants were part of a massive deceptive advertising scheme that tricked more than a million consumers into buying “rogue” computer security products, including WinFixer, WinAntivirus, DriveCleaner, ErrorSafe, and XP Antivirus. The scheme allegedly relied on deceptive advertisements featuring bogus computer “scans” that falsely claimed to detect viruses, spyware, and illegal pornography on consumers’ computers. The settlement imposed a judgment of nearly $1.9 million against the two Cincinnati-based defendants, James Reno and ByteHosting Internet Services, LLC. This amount represents the gross revenues these two settling defendants realized from the alleged scam. The settlement prohibits James Reno and ByteHosting from using deceptive “scareware” advertising tactics and from installing malicious programs on consumers’ computers. The settlement also permanently bars Reno and ByteHosting from ever again doing business with their co-defendants. The settlement does not affect the FTC’s ongoing case against the remaining defendants in the suit. According to the complaint, the two companies charged in the case – Innovative Marketing, Inc. and ByteHosting Internet Services, LLC – operate using a variety of aliases and maintain offices in various countries. Innovative Marketing, incorporated as a company in Belize, maintains offices in Kiev, Ukraine. ByteHosting Internet Services is based in Cincinnati, Ohio. The complaint alleges that these two companies, along with individuals Daniel Sundin, Sam Jain, Marc D’Souza, Kristy Ross, and James Reno, violated the FTC Act by misrepresenting that they conducted scans of consumers’ computers and detected a variety of security or privacy issues, including viruses, spyware, system errors, and pornography. The complaint also names a sixth individual, Maurice D’Souza, as a relief defendant who received proceeds from the scheme.
A 2010 study by Google found 11,000 domains hosting fake anti-virus software, accounting for 50% of all malware delivered via internet advertising.
Combating Scareware
Prevention
Clearly, scareware presents grave dangers to users because not only does it compromise your privacy and security, but cybercriminals have become so sophisticated that the removal of such malicious software can be extremely difficult and in many cases, costly. They usually appear in the form of pop-up ads even in websites that are legitimate. Sometimes you are taken to the scareware website directly and clicking on the X button on the window actually activates the malicious program.
However, there are many measures that you can take to ensure you aren't victimized by these scams. As in many situations, prevention is often the most effective measure against the threat of scareware. There are many good quality pop-up blockers that you can make use of and some of them are offered free. A good pop-up blocker will be one that targets not only advertisements but also spam as well as spyware. It is also a good idea to install a pop-up blocker that actively looks for and then destroys tracking cookies.
Social networking sites are a favorite target of cybercriminals simply because they are so popular and people do have a tendency to be negligent when they are on these sites. If you are a frequent social network user, choose a strong password and change it often. Beware of applications that you find on the sites such as games and other entertainment applications. In some cases, launching the application means you are allowing the third-party website to access information contained in your personal page.
Other Measures
Scareware websites appear legitimate with layouts that are very well-designed so you wouldn't think of suspecting these attackers. Know that these scammers change the appearance of their websites often so as to reduce the possibility that they will be recognized by Internet users. Even if the site claims to be affiliated with legitimate companies, be wary of these claims, especially if there is no link that will take you directly to the authority site. Keep a list of trusted anti-virus software and check any new names against this list always.
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