FTC Attacks Spyware Marketers Exploiting Flaws in Internet Explorer

CONCORD, N.H. — The Federal Trade Commission has been granted a temporary restraining order against several software companies based in New Hampshire and Pennsylvania that allegedly infected computers with spyware and then tried to sell surfers the solution.

The FTC’s complaint in U.S. District Court cited as defendants Seismic Entertainment Productions Inc., SmartBot.Net Inc. and Sanford Wallace, who is president and owner of Seismic and SmartBot.

Regulators accused the companies of showering computer screens with pop-up ads after secretly infecting them and then trying to get consumers to buy “spy wiper” or “spy deleter” for $30.

The companies, according to the complaint, exploited a number of vulnerabilities in the 5.01, 5.5 and 6.0 versions of the Microsoft Internet Explorer web browser to reconfigure consumers’ computers by installing software code onto their computers without their knowledge or authorization.

Once the spyware is downloaded to computers from the companies’ websites, the FTC said, it causes a debilitating sequence of events to occur.

The programs that the spyware installs include Favoriteman, TrojanDownloader, WinFetcher, VX2 and Clearsearch, among others.

“First the spyware replaces the web browser’s default homepage with a different web page, www.default-homepage-network.com,” the FTC said in a brief. “Upon visiting the web page, the computer screen is peppered with a cascade of pop-up advertisements, including ads that cover the entire screen and promote adult entertainment websites.”

The defendants also made money from affiliate programs based on the number of downloads and installs they induced, according to the FTC.

According to an affiliate program offered by Mailwiper Inc., the company that sold Spy Deleter and Spy Wiper received 45 percent of the purchase price, or $13.50.

The FTC’s complaint alleged that Wallace, acting either individually or in concert with others, “formulated, directed, controlled, or participated in the acts and practices of Seismic and SmartBot” in violation of FTC Act §5.

Regulators are attempting to seek a permanent injunction against the companies, as well as rescission of contracts, restitution and the disgorgement of ill-gotten gains.

The case is Federal Trade Commission vs. Seismic Entertainment Productions Inc., (no court docket number available).

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Justices Alito, Thomas Invoke Victorian-Era Morality Law, Raising Censorship Concerns

Several national publications reported this week on widespread concern among Free Speech advocates after U.S. Supreme Court Justices Samuel Alito and Clarence Thomas repeatedly invoked during a hearing the infamous segregation-era law the Comstock Act, which was the cornerstone of U.S. censorship of sexual material from the 1870s until the 1970s.

Nebraska AV Bill Moves Forward Despite Privacy, Free Speech Concerns

Nebraska’s unicameral Legislature has given first-round approval to LB 1092, the state’s version of the age verification bills being sponsored around the country by anti-porn religious conservative activists.

Performers in Meta Blacklisting Lawsuit Seek to Preserve Antitrust Claims

Adult Performance Artists Guild board officers Alana Evans, Kelly Pierce and Ruby have informed a California court that, although they want to drop their lawsuit claiming that Meta conspired with OnlyFans to blacklist rival premium fan platforms’ talent, they may still pursue antitrust claims in the future.

FSC, Co-Plaintiffs to Ask US Supreme Court to Review Constitutionality of Texas Age Verification Law

Free Speech Coalition (FSC) and its co-plaintiffs in the challenge to Texas’ controversial age verification law have petitioned the United States Court of Appeals for the 5th Circuit to stay its recent decision upholding the law, because they intend to appeal to the U.S. Supreme Court to review the law’s constitutionality.

FSC Vows to Fight Florida Age Verification Law

Free Speech Coalition (FSC) has issued a statement vowing to continue fighting Florida’s new age verification law, which was signed by Gov. Ron DeSantis on Monday as part of a comprehensive bill targeting minors’ use of social media.

Kansas Republican Aims to Create New Bureaucracy to 'Investigate' Porn Websites

Republican state legislators succeeded Monday in moving forward Kansas’ version of the age verification bills being sponsored around the country by anti-porn religious conservative activists, despite serious concerns raised by House Democrats about the cost of establishing a new bureaucracy tasked with investigating websites for pornographic content.

Industry Attorney, Free Speech Champion Clyde DeWitt Passes Away at 75

Noted industry attorney Clyde DeWitt passed away on Friday in Las Vegas at 75, according to friends and colleagues.

Texas AG Ken Paxton Sues Chaturbate, xHamster Over Controversial Age Verification Law

Texas Attorney General Ken Paxton filed lawsuits on Tuesday against the parent companies of Chaturbate and xHamster, claiming that the sites are not complying with the state’s controversial age verification law, HB 1181.

GirlsDoPorn's Michael Pratt Extradited From Spain, Pleads 'Not Guilty'

Former GirlsDoPorn owner Michael Pratt made his first appearance in federal court Tuesday following his extradition from Spain Monday night, according to a statement released by the Department of Justice.

Missouri Republican Behind FOSTA-SESTA Renews Attack on OnlyFans

Rep. Ann Wagner, the Missouri Republican legislator who was the original architect of FOSTA-SESTA, has renewed her call for federal action against OnlyFans.

Show More