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

New Fansly Analytics Platform 'SlyKiwi' Launches

SlyKiwi, a new analytics platform exclusively designed for Fansly content, has officially launched.

FPNCash Appoints Kimi Evans Head of Business Development

FPNCash has appointed Kimi Evans as its new head of business development.

CamModelDirectory Launches Platform Upgrade

CamModelDirectory has launched its CMD 3.0 platform upgrade.

AEBN Publishes Popular Searches by Country for June, July

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

Playboy to Move Global HQ to Miami Beach

Playboy announced today that it will be moving its global corporate headquarters from Los Angeles to Miami Beach.

Bellesa Plus Names Magalie Rheaut as Chief Growth Officer

Bellesa Plus has named Magalie Rheaut as its Chief Growth Officer.

PASS to Relaunch Performer Subsidy Fund

PASS has announced that it will relaunch the Performer Subsidy Fund (PSF) to cover sexually transmitted infection (STI) test panel costs for up to 10 people each month.

Pineapple Support Taps Austin Ponce as Brand Ambassador

Pineapple Support has named Austin Ponce as its newest brand ambassador.

Taylor Vixxen Stars in New DezyRed Interactive VR Game

Taylor Vixxen stars in an interactive VR game from DezyRed.

XBIZ Amsterdam's Jakarta Hotel Sold Out, Additional Hotels Announced

Guest rooms at XBIZ Amsterdam’s host conference venue, Jakarta Hotel, are now completely sold out.

Show More