FTC Orders District Court to Stop 'Scareware' Scheme

BALTIMORE — A U.S. district court has issued a temporary stop to a large-scale "scareware" scheme being perpetrated by two companies, Innovative Marketing Inc. and ByteHosting Internet Services LLC.

The court, acting at the behest of the Federal Trade Commission, halted a massive plan by the companies to dupe Internet advertising networks into running ads for their products and services, which purported to promote legitimate security companies, but when clicked, led only to the defendants' websites.

Once on the defendants' sites, users would receive a fake "scan" of their computers that would return frightening results listing all manner of viruses, illegal pornography or dangerous software. The websites would then try to sell the visiting users on security software like WinFixer, WinAntivirus, DriveCleaner, ErrorSafe and XP Antivirus.

Along with the two cpmpanies, the FTC complaint implicates individuals Daniel Sundin, Sam Jain, Marc D’Souza, Kristy Ross, and James Reno. Maurice D’Souza also was named in the complaint, though only as a "relief" defendant who got money from the scheme, though he didn't directly participate in it.

Along with the stoppage, the court has frozen the assets of everyone involved — and those assets are considerable. According to the FTC, more than 1 million consumers bought software because of the scheme at about $39.95 per unit.

The adult industry saw its own alleged scareware scheme recently. In September, Washington state Atorney General Robert McKenna sued James Reed McCreary IV, CEO of the web hosting company Alpha Red, for being involved in such a scheme. Alpha Red has since filed for bankruptcy.

For more information on how to avoid scareware schemes, visit the FTC website.

Related:  

Copyright © 2025 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

British Documentary Spotlights XBIZ Amsterdam With Candid Conversations

British creator and host Josh Pieters traveled to XBIZ Amsterdam to film a documentary about the annual European adult industry conference.

XBIZ 2026 to Debut 'New Talent Go-See' Special Event

XBIZ 2026, North America’s premier adult industry conference, will debut a special event designed to help new talent jump-start their careers: the New Talent Go-See.

Penthouse Announces Digital Archive Launch

Penthouse Magazine has announced that it will launch a comprehensive digital archive in 2026.

Dreamcam Joins Pineapple Support as Supporter-Level Sponsor

Dreamcam has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

AEBN Publishes Popular Searches by Country for August, September

AEBN has released the list of popular searches from its straight and gay theaters by country in August and September.

AV in Focus: A Guide to Unlocking Compliance With Clarity

The age verification era isn’t coming — it’s here. Laws are already on the books in numerous U.S. states, as well as in the U.K., France and beyond.

Canadian Privacy Commissioner Endorses National AV Bill

Philippe Dufresne, privacy commissioner of Canada, has voiced support for a bill that would impose fines of up to $500,000 on adult sites that do not implement age verification for Canadian viewers.

Ricky Johnson Launches 'Ricky's Resort' Through YourPaysitePartner

Ricky's Room studio honcho Ricky Johnson has launched his latest site, RickysResort.com, through YourPaysitePartner (YPP).

Industry Attorney Paul Cambria Retires After 50 Years of Practicing Law

After more than a half-century in practice, during which he provided the defense in some of the adult industry's most notable legal cases, attorney Paul Cambria has retired.

2026 XMA Nominations Party Set for Nov. 19 in Hollywood

The 2026 XMA nominations reveal party will take place at Keys on the Sunset Strip on Wednesday, Nov. 19, with red-carpet arrivals starting at 8 p.m.

Show More