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Telecommunications Spyware scammer forced to repay $US4 million
Telecommunications Spyware scammer forced to repay $US4 million | Spyware scammer forced to repay $US4 million |
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| by Stuart Corner | |
| Friday, 05 May 2006 | |
  
The FTC alleged that Sanford Wallace and his company, Smartbot.Net, exploited a security vulnerability in Internet Explorer in order to distribute spyware which caused the CD-ROM tray on computers to open and then displayed an on-screen “final warning!!” message that said, “If your CD-ROM drive’s open...You desperately need to rid your system of spyware pop-ups Immediately! Spyware programmers can control your computer hardware if you failed to protect your computer right at this moment! Download Spy Wiper NOW!” The product which, purported to remove spyware sold for $US30. In addition to ordering repayment of over $US4 million received through this scam, the judgement also barred Wallace and his company from downloading spyware onto consumers’ computers; from downloading any software without consumers’ consent; from redirecting consumers’ computers to sites or servers other than those the consumers selected to visit; from changing any Web browser’s default home page; and from modifying or replacing the search features or functions of any search engine. Similar orders were made against Jared Lansky and his company, OptinTrade, an ad broker who disseminated ads containing Wallace’s spyware, and Lansky was ordered to give up $US227,000 received through this means. |
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