Panel Hears Fraud Schemes Involving Porn

WASHINGTON, D.C. – A House panel was told Thursday that the “early adopters” of the Internet have seized on opportunities against consumers – and most of the fraudulent activity involves online pornography.

Howard Beales, the Federal Trade Commission’s director, also said that peer-to-peer software can expose consumers to unwanted pornography, as well as games, videos and music that may be inappropriate for children.

Beales told the Subcommittee on Commerce, Trade, and Consumer Protection of the House Committee on Energy and Commerce that although the Internet has empowered consumers with instant access to a breadth of information, “fraud artists also have proven adept at exploiting this new technology for their own gain.”

He spoke at a hearing titled, “Online Pornography: Closing the Doors on Pervasive Smut.”

Beales, citing numerous incidents involving deceptive and unfair practices in the distribution of online pornography, said it has brought over 300 Internet-related enforcement actions.

In one example, Beales said the FTC sued John Zuccarini, who registered some 6,000 domain names that were misspellings of popular websites for “mousetrapping” consumers.

Beales said that in a ploy designed to capture teenage Internet users, Zuccarini registered 15 variations of the popular children's cartoon site, www.cartoonnetwork.com – for example “cartoon netwok” instead of “cartoon network” and 41 variations on the name of teen pop star Britney Spears.

Beales said that surfers who looked for a site, but misspelled its web address, were taken to the defendant's sites.

“Once consumers arrived, Zuccarini’s websites were programmed to take control of their Internet browsers and force the consumers to view explicit advertisements for pornographic websites, as well as websites advertising gambling and psychic services,” Beales said. “The obstruction allegedly was so severe in this case that consumers often were forced to choose between taking up to 20 minutes to close out all of the Internet windows, or turning off their computers, and losing all of their ‘pre-mousetrap’ work.”

After being sued, Beales said Zuccarini disappeared but was later found and convicted.

As for file-sharing programs, Beales said filters that block access to materials that contain adult-related or offensive content, “operate by only examining language found in the title or descriptor of the file, rather than the content of the file.”

Moreover, Beales said, the filters “may not be effective when users label files inaccurately, which can result in the transfer of files with pornographic or other unwanted content.”

The FTC was one of many federal agencies or groups asked to testify before the subcommittee.

Beales was joined by the FBI’s Kevin Lourdeau; Linda Koontz of the General Accounting Office; Charlie Catlett of the Senior Fellow Computation Institute; Martin C. Lafferty of the Distributed Computing Industry Association; Norbert Dunkel of the University of Florida; Penny Nance of the Kids First Coalition; and Ernie Allen of the National Center for Missing and Exploited Children.

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

Dreamcam Rolls Out Web-Based Passthrough VR

Dreamcam has introduced web-based passthrough VR functionality to its streaming platform.

2026 TEAs Nominees Announced

Nominees for the 2026 Trans Erotica Awards (TEAs), presented by Clips4Sale, have been announced. The ceremony will return to the Avalon in Hollywood on Sunday, March 8.

JD Directs New Arya Santana Showcase

Evil Angel has released director JD’s latest showcase, titled "Bad Behavior: Arya Santana."

Lauren Phillips, Derek Kage Cap AEBN's Top 100 Stars of 2025

AEBN has revealed its top 100-selling stars of 2025 in both gay and straight theaters.

The Game to Bring West Coast Fire to X3 Expo Grand Finale

Multi-platinum West Coast rapper The Game will close out X3 Expo grand finale, presented by Chaturbate, with a high-octane live performance at the Hollywood Palladium on Saturday, Jan. 17, delivering a finale built on swagger, legacy and raw LA energy.

Anna Bella Makes Her Studio Debut in Latest From Immoral

Anna Bella has made her studio debut in the latest release from Immoral Productions, alongside Matt Bird and studio honcho “Porno Dan” Leal.

Danni Jones Returns to Pervz

Danni Jones stars with Ryan Mclane in the latest episode of the Pervz series "ShoplyfterMYLF," titled "Case No. 8004409 — Weren’t You My Tutor?"

Former IEAU Officer Sentenced to 4 Months

Amanda Gullesserian, who performed in the industry under the name Phyllisha Anne and founded the now-defunct International Entertainment Adult Union (IEAU), has been sentenced to four months’ imprisonment for making a false statement in an IEAU federal financial report.

Sky Wonderland, Melody Marks Front Latest From Blacked Raw

Sky Wonderland and Melody Marks star with Sheem in the latest release from Vixen Media Group (VMG) studio imprint Blacked Raw.

2026 XBIZ LA Conference Schedule Announced

XBIZ is pleased to announce the release of the full show schedule for the XBIZ 2026 conference, set to take place Jan. 12-15 at the Kimpton Everly Hotel in Hollywood.

Show More