Microsoft, Washington State Sue Over Scareware

SEATTLE — Washington State and Microsoft Corp. are suing a Texas man and his businesses for allegedly operating a “scareware” scam on the Internet.

James Reed McCreary IV, of Woodlands, Texas, is the individual named in the lawsuit, filed in King County Superior Court on Oct. 1. Also named are an inactive Texas corporation, Branch Software Inc., which marketed software called Registry Cleaner XP, and Alpha Red Inc., a Houston-based company that provides various web services.

XBIZ’ attempts to reach McCreary were not immediately successful.

The lawsuit targets McCreary for running a business that violated the state Computer Spyware Act and constituted unfair business practices under the state Consumer Protection Act. It seeks a permanent injunction and damages, restitution and civil penalties.

Registry Cleaner XP was advertised to users of computers running Microsoft Windows through pop-ups of the operating system’s Windows Messenger Service. Also known as “net send messages” or “messenger spam,” they were made to look like official Windows messages that told users their computer’s registry was infected and needed repair.

Clicking the message would lead to downloading of free scan software for Registry Cleaner XP and, eventually, a $39.95 charge to install the full version and repair the computer of the “errors discovered by the scan.”

“[Branch Software] are in competition with others engaged in the sale and marketing of these products in and from Washington,” according to the lawsuit.

This kind of scareware is emerging as a money-making scheme by tech-savvy criminals, Ryan Sherstobitoff, chief corporate evangelist global anti-virus specialist Panda Security, told XBIZ.

Its installation on computers could yield credit card numbers as well as other personal information, Sherstobitoff said.

There may be “a whole onslaught of teams around the world” producing scareware, Panda’ security researcher Sean-Paul Sorrell said.

“The line does get kind of blurry between this company and others that are similar to it,” Sorrell said. “This one is a U.S. corporation backing this software with marketing techniques.”

Because there may be instances of organized criminal organizations controlling scareware for their benefit, many adult affiliate programs can find themselves victims of extortion scams, Sorrell told XBIZ.

One example Sorrell gave was Motigo, a web analytics service. Scareware purveyors may purchase advertising for Motigo on affiliate sites. The resulting pop-ups, which weren’t originally intended to be malicious, end up being hijacked.

Related:  

Copyright © 2026 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

AEBN Reveals Ariel Demure as Top Trans Star for Q3 of 2026

AEBN has named its top trans stars for the third quarter of 2026, with Ariel Demure landing atop the leaderboard.

Porn Piracy: How AI Is Transforming Content Theft and Protection

Gone are the days when the word “pirate” primarily conjured images of clever scoundrels like Captain Jack Sparrow, swaggering across the high seas in search of gold and jewels. Today’s most prolific pirates operate in the darkest corners of the internet, armed with bots, scrapers and generative AI.

Playhaus Network Launches Podcast Platform Through PAYSITE

Entertainment website The Playhaus Network is launching its new podcast platform through PAYSITE.

Sportsheets Wins Trademark Infringement Case Against Copycat Website

The World Intellectual Property Organization (WIPO) has ruled in favor of adult brand Sportsheets in a case against a copycat website using an infringing domain.

Kylie Rocket, Derek Kage Cap AEBN's Top Stars for 3rd Quarter of 2026

AEBN has revealed its most popular performers in straight and gay theaters for the third quarter of 2026.

JustFor.fans Launches Android Version of 'JFF Create' Mobile App

JustFor.fans (JFF) has rolled out an Android-compatible version of its creator management mobile app, JFF Create.

Kink.com Wins Trademark Infringement Case Against Copycat Website

The World Intellectual Property Organization (WIPO) has ruled in favor of Kink.com in a case against a copycat website using an infringing domain.

On-Chain JAV Distribution Platform 'HandSome' Goes Live With Open Beta

Fukuoka tech firm Fidem has officially rolled out an open beta version of HandSome, a new Japanese Adult Video (JAV) content distribution platform built on blockchain technology.

Arcom Investigates MYM Over SREN Compliance

French media regulator Arcom is investigating creator platform MYM to determine whether the site may have violated age assurance rules and/or other requirements of France’s Security and Regulation of the Digital Space (SREN) law.

England, Wales to Enforce 'Extreme' Content Laws Starting Nov. 6

England and Wales will begin enforcing new laws criminalizing depictions of “non-fatal strangulation,” as well as sexual content in which adults portray underage characters, starting Nov. 6, the U.K. Ministry of Justice announced Friday.

Show More