Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Risk

5/31/2010
10:18 PM
George V. Hulme
George V. Hulme
Commentary
50%
50%

FBI Busts $100 Million 'Scareware' Gang

The three men who were indicted are alleged to have been part of an illegal scheme that spanned 60 countries and sold victims $100 million worth of bogus software that purported to fix system problems that apparently didn't exist.

The three men who were indicted are alleged to have been part of an illegal scheme that spanned 60 countries and sold victims $100 million worth of bogus software that purported to fix system problems that apparently didn't exist.From the Chicago FBI field office:

According to a federal indictment returned here against a Cincinnati area man and two other men believed to be living abroad. The charges allege that the defendants, through fake advertisements placed on various legitimate companies' websites, deceived Internet users into falsely believing that their computers were infected with "malware" or had other critical errors to induce them to purchase "scareware" software products that had limited or no ability to remedy the purported, but nonexistent, defects. The alleged scheme is widely regarded as one of the fastest-growing and most prevalent types of Internet fraud.

Two defendants, Bjorn Daniel Sundin, and Shaileshkumar P. Jain, with others owned and operated Innovative Marketing, Inc. (IM), a company registered in Belize that purported to sell anti-virus and computer performance/repair software through the internet and that operated a subsidiary called Innovative Marketing Ukraine, located in Kiev. The company appeared to close down last year after the U.S. Federal Trade Commission filed a federal lawsuit in Maryland seeking to end the allegedly fraudulent practices.

Like most of these scams, federal officials claim that the company, Innovative Marketing Inc. (IM), lured Internet users to a web site that would serve bogus alerts:

• the IM scareware site appeared not to be a website at all, but rather a warning message from the computer user's operating system, falsely informing the user of an error and prompting the user to click on a box to address the purported error. Further error message prompts occurred regardless of whether the user clicked the box agreeing to or declining to proceed or attempted to close the error message window;

• the IM scareware displayed an animated graphic image that gave the fake appearance that the computer was being scanned for various errors or viruses. Bogus results falsely showed that critical errors were detected by the fake scan; and

• the IM scareware website then prompted the victim user to download a free trial version of an IM product, falsely promising that the software could repair the nonexistent critical errors. Those who fell for the alleged scam then purchased fake software named "Malware Alarm," "Antivirus 2008," and VirusRemover 2008."

These types of scams have been increasing during the past couple of years. In January we highlighted how Microsoft customers were being targeted in the post Office Users Targeted In Phishing, Rogueware Attacks as wells as this post from October 2009: Scammers Up Rogueware War.

 

Recommended Reading:

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
COVID-19: Latest Security News & Commentary
Dark Reading Staff 7/14/2020
Omdia Research Launches Page on Dark Reading
Tim Wilson, Editor in Chief, Dark Reading 7/9/2020
Russian Cyber Gang 'Cosmic Lynx' Focuses on Email Fraud
Kelly Sheridan, Staff Editor, Dark Reading,  7/7/2020
Register for Dark Reading Newsletters
White Papers
Video
Cartoon
Current Issue
Special Report: Computing's New Normal, a Dark Reading Perspective
This special report examines how IT security organizations have adapted to the "new normal" of computing and what the long-term effects will be. Read it and get a unique set of perspectives on issues ranging from new threats & vulnerabilities as a result of remote working to how enterprise security strategy will be affected long term.
Flash Poll
The Threat from the Internetand What Your Organization Can Do About It
The Threat from the Internetand What Your Organization Can Do About It
This report describes some of the latest attacks and threats emanating from the Internet, as well as advice and tips on how your organization can mitigate those threats before they affect your business. Download it today!
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2020-6287
PUBLISHED: 2020-07-14
SAP NetWeaver AS JAVA (LM Configuration Wizard), versions - 7.30, 7.31, 7.40, 7.50, does not perform an authentication check which allows an attacker without prior authentication to execute configuration tasks to perform critical actions against the SAP Java system, including the ability to create a...
CVE-2020-6289
PUBLISHED: 2020-07-14
SAP Disclosure Management, version 10.1, had insufficient protection against Cross-Site Request Forgery, which could be used to trick user in to browsing malicious site.
CVE-2020-6290
PUBLISHED: 2020-07-14
SAP Disclosure Management, version 10.1, is vulnerable to Session Fixation attacks wherein the attacker tricks the user into using a specific session ID.
CVE-2020-6291
PUBLISHED: 2020-07-14
SAP Disclosure Management, version 10.1, session mechanism does not have expiration data set therefore allows unlimited access after authenticating once, leading to Insufficient Session Expiration
CVE-2020-6292
PUBLISHED: 2020-07-14
Logout mechanism in SAP Disclosure Management, version 10.1, does not invalidate one of the session cookies, leading to Insufficient Session Expiration.