“Scareware” sellers must pay $163M
A Maryland businesswoman who “tricked customers into thinking their computers were infected with malicious software” was ordered by a federal judge to join three others in paying $163 million in restitution, the Federal Trade Commission announced this week.
An FTC suit charged Kristy Ross , an officer of Ukraine-based Innovative Marketing Inc., with placing ads on popular websites that offered a “system scan” to detect security problems. The scan “invariably detected a host of malicious files” and then sold bogus software for $30 to $100 to more than 1 million customers.
Ross was permanently prohibited from engaging in deceptive marketing and from marketing security software and software that interferes with customers’ computer use.
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