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 © 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

Brazil Begins Monitoring 18 Adult Sites for AV Compliance

Brazil’s National Data Protection Authority (ANPD) is now monitoring 18 high-traffic adult websites for compliance with the country’s Digital Statute for Children and Adolescents (Digital ECA), which requires such sites to age-verify users located in Brazil.

Ofcom Fines First Time Videos $100,000 for AV Noncompliance

U.K. media regulator Ofcom on Thursday imposed a fine of 80,000 pounds (more than $100,000) against First Time Videos, which operates FTVGirls.com and FTVMilfs.com, for failing to implement age checks required for compliance with the Online Safety Act.

Curves Ahead: How BBW Creators are Turning Differentiation Into Competitive Advantage

For centuries, curves have been celebrated as a symbol of beauty, sensuality and power. From the soft opulence of Rubens paintings to the glamorous silhouettes of pinup icons, fuller figures have long occupied a place in art, fashion and fantasy.

Woodhull Freedom Foundation to Host Virtual 'Pride' Edition of 'Fact Checked' Series

Woodhull Freedom Foundation is hosting a Pride Month virtual edition of its series “Fact Checked by Woodhull.”

'InMelanin' Relaunches Through PAYSITE

InMelanin.com has officially relaunched through PAYSITE.

Pearl Industry Network Partners With Takedown Piracy

Industry trade group Pearl Industry Network (PiN) has officially partnered with Takedown Piracy.

Hollywood Reporter Spotlights XBIZ Miami in Feature on Fan Platforms

Last month's XBIZ conference serves as the setting for a new Hollywood Reporter feature examining the competitive fan platform market.

F2F, Image Angel Launch 'Forensic Watermarking' for Traceability

Friends2Follow (F2F) and Image Angel have partnered to launch a new traceability solution to combat unauthorized content sharing with the use of forensic watermarks.

EU Court: France Can Require Foreign Sites to Implement AV

The European Union’s Court of Justice ruled on Tuesday that France may require pornographic websites based in other EU states to implement age verification in accordance with French law, as long as France follows EU electronic commerce rules.

LoyalFans Announces 'Group Walkthrough' Online Event Series

LoyalFans has announced its new “Group Walkthrough” online event series for creators, taking place every Tuesday and Thursday.

Show More