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FTC Shuts Down Fraudulent Antispyware Company

spewey writes "The Federal Trade Commission has shut down MaxTheater, Inc., alleging the company participated in fraudulent practices with its Spyware Assassin site, which purportedly scanned user machines for spyware and reported infections, even though no scan was done and in most cases, the user machine was clean. The site then offered the user a $30 product to remove the spyware, which the commission reports 'didn't do a thing.'"

40 of 198 comments (clear)

  1. Down by maotx · · Score: 5, Informative

    with its Spyware Assassin site

    I'm getting a blank page with the title "New Page 1"
    Here is a google cache.

    --
    I'm a virgo and on Slashdot. Coincidence? Yes.
    1. Re:Down by Neophytus · · Score: 4, Funny

      The clue was in the tagline "The FTC has shut down...". Seemingly, they've gone back to the same site they had in Feb 04.

    2. Re:Down by TheSpoom · · Score: 2, Insightful

      I bet they change their name and resurface.

      --
      It's better to vote for what you want and not get it than to vote for what you don't want and get it.
      - E. Debs
  2. Clean Machines? by multipartmixed · · Score: 5, Funny

    > in most cases, the user machine was clean.

    Yeah, right. Where the hell did they get clean windoze boxen from??

    --

    Do daemons dream of electric sleep()?
    1. Re:Clean Machines? by Anonymous Coward · · Score: 5, Funny

      "windoze boxen"?

      You're thirteen, right?

    2. Re:Clean Machines? by thesnarky1 · · Score: 3, Interesting

      After I do a sweep of my system using McAffe, Zone Alarm, and Ad-aware, mine's pretty sqeeky clean. At least enough to know the 121 infections it reported had to be false.

    3. Re:Clean Machines? by blanks · · Score: 2, Interesting

      My business laptop which I only use for work and development has never had any type of infection on it.

      I dont download freeware, or any software really, everything is installed from cd.

      I dont use p2p, torrents etc. dont need it so I dont use it.

      I only visit about 30 websites, all of which I trust, everything else is set to be un trusted.

      anti virus, firewall, and security permissions set to high.

      Its really simple to keep your machine clean, as long as you keep the idea of infections at the top of your list of what to watch for.

    4. Re:Clean Machines? by greppy · · Score: 3, Funny

      He can tell because real geeks spell it: W1nd0z3 B0x3N

    5. Re:Clean Machines? by Anonymous Coward · · Score: 3, Funny

      if(site==slashdot) {
      language=l4nGu4g3;
      iq=40;
      }

  3. Interesting to note... by yuriismaster · · Score: 5, Insightful

    FTA:

    "[MaxTheatre's Media] represent that they have "scanned" or otherwise examined the consumer's computer and have detected that spyware already resides on it."

    I smell precedence!

    Almost every single pop-up ad proclaims to have found spyware on my machine, and not all of them are SpywareAssassin. Can we use this to take down other phony antispyware companies?

    1. Re:Interesting to note... by TheSpoom · · Score: 4, Insightful

      Hmm... Taking this a step further, wouldn't this also apply to those banner ads that look like a Windows dialog box saying that "viruses / spyware / adware / slowness / ... have been found on your machine, click here to remove / speed up"?

      --
      It's better to vote for what you want and not get it than to vote for what you don't want and get it.
      - E. Debs
    2. Re:Interesting to note... by ornil · · Score: 2, Insightful

      Almost every single pop-up ad proclaims to have found spyware on my machine

      Look at them carefully. Most of them say something like, "Your machine may be infected by spyware". Or even "is likely to". Which is perfectly true, given the statistics for this sort of thing.

  4. Re:I'm Confused, Tell Me what to Think by Tyler+Eaves · · Score: 5, Insightful

    You're confused. The FTC is probably one of the most useful and generally non-sucky government agencies. It's like the various state attorney generals offices on a larger scale. Bascailly all they do is shut down scams and the like. You're thinking of the evil that is the F*C*C. No relation, other than both being government agencies.

    --
    TODO: Something witty here...
  5. Oh this is... fun! by The-Bus · · Score: 5, Funny
    Why not these?

    "The Federal Trade Commission has shut down 3DRealms alleging the company participated in fraudulent practices with its Duke Nukem Forever game, which purportedly rehashed the bawdy actionated adventures of Duke Nukem, even though no game was done and in most cases, the user looked at shoddily put together "screenshots" which seemed to promise an actual game. The site then offered the user a 3D game product, which the commission reports 'doesn't exist.'"
    ...

    "The Federal Trade Commission has shut down Microsoft, alleging the company participated in fraudulent practices with its Windows and Office software, which purportedly gave the illusion of an operating system and/or increased productivity at work, even though no improvement was done and in most cases, the user machine would stop working correctly after a day. The company's site then offered the user a $30 product to enhance security, which the commission reports 'didn't do a thing.' At this time, the only customer that had accepted such a product was the U.S. Air Force, which spent over $30,000,000 allegedly 'securing' its systems."
    ...

    And so on... Any others?
    --

    Small potatoes make the steak look bigger.

    1. Re:Oh this is... fun! by Anonymous Coward · · Score: 5, Funny

      "The Federal Trade Commission has shut down Slashdot, alleging the site participated in fraudulent practices with its user comment forum, which purportedly gave the illusion being a font of insightful, and informative information, even though no valid information was ever conveyed and in most cases, users were posting at the site while giving their employers the false impression that they were working day after day. The site offered nothing in the way of journalistic content or insight employing its user base to do the dirty work of finding stories and then simply posting links and paragraph-long summaries of someone elses journalistic efforts and purporting this to be content while collecting add revenue. The site even went so far as to repeat some links multiple times with slightly different descriptions, to pass these off as new content, which the commission reports wasnt worth a thing.' At this time, the only user that had continuously fallen for this clever ruse was a citizen of the former Soviet Russia, who, in virtually discussion added valuable insights and contrasts to the way things were in his homeland in the good old days."

  6. No message? by caryw · · Score: 5, Funny

    The FTC should have put up an 0WN3D message explaining why the site was taken down, and what to do if you were defrauded by the company in the past.
    Much more informative than a blank page, and it's what the MPAA does for sites it takes down (ie. lokitorrent.com)

    Then again spywareassassin.com still resides at the same IP address (66.172.78.113) that it did before, so the order was probably to remove all content. Perhaps an A record change or domain transfer to an FTC controlled server (with informational message) is iminent.
    - Cary
    --Fairfax Underground: Where Fairfax County comes out to play

    1. Re:No message? by freshman_a · · Score: 2, Interesting

      Since some people seem to take everything posted on /. as 100% fact, I'd like to point out (as many other's did in that articles' comments) that it probably wasn't a hoax.

      a) The MPAA said themselves that they were taking action again LokiTorrent. Google cache here.

      b) I've also read that there was an entry in PACER about the lawsuit as well.

    2. Re:No message? by dosius · · Score: 5, Informative

      Look at the hosts surrounding 66.172.78.113...

      [%] resolved [66.172.78.105] to (www.xxxpersonals-london.co.uk)
      [%] resolved [66.172.78.106] to (www.xxxpersonals-southwest.co.uk)
      [%] resolved [66.172.78.107] to (www.hotadultcams.com)
      [%] resolved [66.172.78.108] to (www.getitspot.com)
      [%] resolved [66.172.78.109] to (www.crowgod.com)
      [%] resolved [66.172.78.110] to (www.iber-hosting.com)
      [%] resolved [66.172.78.111] to (www.topxxxdvdsites.com)
      [%] resolved [66.172.78.112] to (www.toppornstarsites.com)
      [%] resolved [66.172.78.113] to (www.spywareassassin.com)
      [%] resolved [66.172.78.114] to (www.auctionprofit.net)
      [%] resolved [66.172.78.115] to (www.advancedonlinemarketing.com)
      [%] resolved [66.172.78.116] to (www.smutdollars.com)
      [%] resolved [66.172.78.117] to (www.cheapestadultscripts.com)
      [%] resolved [66.172.78.118] to (www.scifiworld.us)
      [%] resolved [66.172.78.119] to (www.memscenter.com)
      [%] resolved [66.172.78.120] to (www.equivista.com)
      [%] resolved [66.172.78.121] to (www.orbz.org)
      [%] resolved [66.172.78.122] to (www.myseries60.net)
      [%] resolved [66.172.78.123] to (www.furaddicted.net)
      [%] resolved [66.172.78.124] to (www.animalhackerz.com)
      [%] resolved [66.172.78.125] to (www.crazedmodding.com)
      [%] resolved [66.172.78.126] to (www.free-adult-cartoons-x.com)
      [%] resolved [66.172.78.127] to (www.ovrimos.com)
      [%] resolved [66.172.78.128] to (www.interracialdirectory.com)
      [%] resolved [66.172.78.129] to (www.knoxvilleareapsychology.org)
      [%] resolved [66.172.78.130] to (www.lucent-inferno.com)
      [%] resolved [66.172.78.131] to (www.basd-action.net)
      [%] resolved [66.172.78.132] to (www.can-online.org)
      [%] resolved [66.172.78.133] to (www.masspersonalinjurylawyer.com)

      Sense a pattern? That whole chunk of IP addresses seems to be owned by a shyster.

      Moll.

      --
      What you hear in the ear, preach from the rooftop Matthew 10.27b
  7. "Shut down" is not enough by sdo1 · · Score: 5, Insightful

    There needs to be SEVERE penalties to discourage others from picking up where this left off. I vote for jail time for the company executives AND those developers who knew exactly what they were doing (or in this case, weren't doing).

    The risk/reward ratio is still tilting too far toward reward for those who would defraud others using the internet.

    -S

    --
    --- What parts of "shall make no law", "shall not be infringed", and "shall not be violated" don't you understand?
    1. Re:"Shut down" is not enough by JNighthawk · · Score: 2, Insightful

      Jail time for writing software. Jail time for falsely marketing software. Jail time for downloading software. Jail time for cracking software.

      Jail time is *never* the answer here. It's ridiculous to send someone to jail for a long time for selling snake oil. Fine them, ok. Jail them for a few months, ok. 10 years for false advertising? 10 years for cracking copy protection? They're both ridiculous.

      --
      Wheel in the sky keeps on turnin'.
    2. Re:"Shut down" is not enough by anagama · · Score: 2, Insightful

      The jail time would not be for writing software. That would be silly. However, FRAUD does warrant jail time. The method is mere detail and ultimately unimportant.

      --
      What changed under Obama? Nothing Good
  8. Great, now for ad destroyer by iamlucky13 · · Score: 2, Informative

    I'm glad to see spyware assassin gone, but the extortionware I see most on computers I work on is ad destroyer. Let's hope the FTC b!tch slaps them next.

  9. Spyware warrior lists numerous similar products by Anonymous Coward · · Score: 5, Informative

    for adding to your hosts file (if you havent already)

    http://www.spywarewarrior.com/rogue_anti-spyware.h tm

  10. Re:I'm Confused, Tell Me what to Think by tyleroar · · Score: 2, Informative

    The FTC did not try to shut down spyware. They shut down a site that pretended to clean people's computers of spyware.

    --
    Portland, North Dakota Puppies
  11. More like this by northcat · · Score: 2, Interesting

    Don't all those ads saying "Your computer is infected! Clean it now!" (or something like that) and "Windows is running slow! speed it up Blah blah blah bullshit bullshit" fall into this same category?

    1. Re:More like this by Rick+Zeman · · Score: 2, Funny

      Don't all those ads saying "Your computer is infected! Clean it now!" (or something like that) and "Windows is running slow! speed it up Blah blah blah bullshit bullshit" fall into this same category?

      I would think so. I like to visit those sites and have those messages appear and "we have scanned you and found...." on my Mac. Yeah, right. You got a bridge to sell me, too.

  12. Great news! by Phidoux · · Score: 3, Insightful

    Hopefully this will have a positive affect for those of us who develop free software but have to constantly deal with the paranoia of malware and spyware.

  13. So why can't the FTC go after... by jasonmicron · · Score: 4, Insightful

    CoolWebSearch / Adzilla / Look2Me / Miraclesearch?

    Personally I see this as doing really nothing for (or against) spyware.

  14. Fallback... by jemenake · · Score: 4, Insightful
    I guess it's back to the automotive repair buisiness for *those* guys.

    Honestly, when I read this, I had flashbacks to all of those TV news investigative reports of mechanics, exterminators, plumbers, etc. who climb under/behind your car/sink/house and come back with "evidence" of a problem that you need to pay them $$$ to fix.

    So... back to the auto shops with the bums! That's what I say! :)

  15. Re:Government interferes with business yet again by chrispl · · Score: 2, Informative

    Except there is no way of PROVING that the "healing rock" does NOT actually heal some people.

    As far as I know with software it is a little easier to test it to see exactly what it does and does not do. If it claims to "remove spyware" and does not, it is a pretty open and shut case that the company selling it is misrepresenting what it does.

    --
    What post? The one you're carrying inside your rusty innards!
  16. We need a new software category by mabu · · Score: 2, Insightful

    I'd call it "moronware". It's designed to troll for idiot users who believe everything they see and fall for stupid schemes. We can lump the Nigerians into this category too, with their stupid cashier's check and phony inheiritence schemes.

    I've said before, I really have less of a problem with these types of unscrupulous operations. They're like financial darwinism, and anyone stupid enough to fall for them deserves to be separated from their money.

    Ironically, there are lots of other schemes that defraud the populace that are based on deception that are protected by the government. I look at this crackdown as the government protecting idiots from small-time operators so that big corporations can continue to prey on them.

    Wake me up when the FTC starts cracking down on the overwhelming deceptive ad practices of all the major U.S. corporations.

    1. Re:We need a new software category by jcocomo · · Score: 2, Insightful

      Yes, yes, little old ladies who don't understand technology deserve to be fleeced out of their savings.

      Civilized societies attempt to protect the weak from the unscrupulous. The fact that a person, for whatever reason, is too weak in comprehension of the way computers work to protect him or her self from a scam like this does not make that person a "moron." It simply means that person doesn't understand how computers work.

      If you wish to invoke Darwinism, remember that that means survival of the fittest, lex talonis. Otherwise, consider yourself lucky that you live in a society where the weak are not allowed to prey on the strong, because we are all weak at some times and in some ways, and the ultimate implication of any sort of social Darwinism, financial or otherwise, is that if I am stronger than you I can overpower you and take from you what I want.

      Furthermore, the deceptive advertizing practices of many U.S. corporations do not bear on the fact that this was an outright scam which preyed upon people who didn't know any better.

  17. Mr. Nice Guys by caferace · · Score: 2, Interesting

    These are the guys that made Spyware Assassin. Their other products should be next...

  18. Outrageous claims by v1 · · Score: 2, Insightful
    How could even a huckster be so foolish as to make such outrageous, "100%" guarantees? From their (cached) web page:

    Not only will it scan your entire system and remove all spyware programs and files...

    ... which will locate any and all spyware currently residing on your system.

    Once SpywareAssassin is installed, your computer is completely guarded against spyware!

    ...will ensure no spyware is installed without your knowledge.

    twits. But then again it's handy that criminals are stupid by default, it makes them easier to catch.
    --
    I work for the Department of Redundancy Department.
  19. Re:Government interferes with business yet again by ocbwilg · · Score: 4, Insightful

    If someone wants to buy a "spirit healing rock" from me, why shouldn't he be able to? If he's dumb enough to buy it, well, what do they say about a fool and his money?

    There's a difference between making vague, general, or unproveable claims (one way or another) and outright fraud. A "spirit healing rock" can't be tested to prove what it actually does. You could advertise the rock as "using mystical powers to make you feel better" and probably get away with it. But the moment you slap on a claim that is demonstrably false like "this rock uses mystical powers to cure cancer" then you are committing fraud and will likely get busted.

    And while it's awfully popular right now to complain about "government interfering with business", I think that most people realize that a certain amount of "interference" (Republican-speak for "oversight") is desirable to protect the populace from criminaly fraudulent behavior. I don't recall anybody complaining about government interfering with business in cases like Enron, Worldcom, Tyco, Healthsouth, Global Crossing, etc. Neither do I recall much complaining when the government bailed out the airlines after 9/11 to keep them in business.

  20. Wow thanks! by Clay_Culver · · Score: 2, Funny

    Wow, that's a hellova pr0n list there. You've just made my saturday night!

  21. Re:I'm Confused, Tell Me what to Think by The+Archon+V2.0 · · Score: 2, Funny

    >You're thinking of the evil that is the
    >F*C*C. No relation, other than both being
    >government agencies.

    Yeah. The FCC is currently controlled by the Servants of Cthulhu, while the FTC is run by the Bavarian Illuminati. Completely different.

    (Note to self: Stop visiting sjgames.com just before posting to Slashdot....)

  22. Re:The Libertarian Response by rokzy · · Score: 2, Insightful

    are you taking the piss? I guess so. the problem with Americans (my assumption is you are) is that when you think "no one could the THAT stupid" you often turn out to be wrong.

  23. It's a good thing it did nothing... by MadAnthony02 · · Score: 2, Interesting

    Sure, Spyware Assasian did nothing, but there are even worse pseudo-anitspyware products out there. The article links to this chart, where PC Mag found spyware removal tools that added additional spyware or did things that aren't real good for Windows, like delete one of the driver folders.

    So it looks like there are even shadier companies out there

  24. Hello? by abb3w · · Score: 2, Informative
    That's total bullshit. Republican or democrat, the government's job is to protect and serve the people.

    Was that falling for a troll, or a counter-troll? Perhaps you might have noticed that this was titled "The Libertarian Response"? Libertarians are neither Republicans nor Democrats. They're a different political party entirely, generally agreeing with liberals on issues pertaining to the individual (such as drugs, abortion, and so on), and agreeing with the conservatives on economic issues (such as fiscal responsibility (Bush aside), corporate regulation, and the minimum wage).

    Commonly, libertarians make a distinction between the personal and economic aspects of liberal thought; the popular Nolan Chart makes the political spectrum a plane, rather than a line.

    Or, as I usually put it: in legislative sessions, the Conservatives sit to the right, the Liberals sit on the left, and the Libertarians are the baboons swinging from the chandeliers. (And it's suprising how many Libertarians will cheerfully agree with that description when asked....)

    The libertarian position stated was a trifle extreme... but does thus highlight the problems with the libertarian's more extreme free-market faction.

    --
    //Information does not want to be free; it wants to breed.