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

Polish Government Proposes AV Mandate for Adult Sites

Poland’s Council of Ministers on Tuesday endorsed a proposed national law that would require sites and platforms to age-verify users to prevent minors from accessing adult content online.

Brazil Launches Complaints Page for AV Violations, Other Issues

Brazil’s National Data Protection Authority (ANPD) on Monday debuted a portal where citizens can report possible violations of the country’s Digital Statute for Children and Adolescents (Digital ECA), which requires adult websites to age-verify users located in Brazil.

FSC Launches 'Speak Out' Media Campaign for Creators

The Free Speech Coalition (FSC) has announced the launch of FSC Speak Out, a media campaign for content creators to tell their stories.

Pineapple Support, Stripchat to Host LGBTQ Support Group

Pineapple Support and Stripchat are hosting a free online support group for LGBTQ+ individuals within the adult industry, titled "LGBTQ and Proud."

Pornhub Awards Fiesta: A Night of Music, Dancing and Camaraderie

The eighth annual Pornhub Awards transformed Los Candiles Night Club in Glassell Park into a celebration of glamour, glitter, fashion and fame Wednesday night, as performers, creators and industry insiders toasted the year’s winners and danced late into the night while Diplo and Midnight Mary kept the party pulsing from behind the decks.

Ukrainian Parliament Rejects Porn Decriminalization Bill

The Verkhovna Rada, Ukraine’s parliament, on Thursday voted against passage of a bill that would have decriminalized the creation and distribution of pornography in that country — an activity that currently carries a prison sentence of three to five years.

FSC Launches Pride Fundraising Drive

The Free Speech Coalition (FSC) has launched its Pride Fundraising Drive to support its efforts on behalf of the LGBTQ+ community.

Cultpix Debuts AI-Generated Vintage Adult Films at Cannes

At this year’s Cannes Film Festival, B-movie streaming service Cultpix debuted a collection of AI-generated short films drawn from erotic magazine photo spreads published 50 years ago.

Ofcom Fines Youngtek Solutions $800K for AV Noncompliance

U.K. media regulator Ofcom on Wednesday imposed fines totaling 600,000 pounds (more than $800,000) against adult site operator Youngtek Solutions for failing to implement age checks and respond to information requests as required for compliance with the Online Safety Act.

Pornhub Launches Lesbian Site 'Pornhub Sapphic'

Pornhub has launched Pornhub Sapphic, a site dedicated to female and non-binary content and creators.

Show More