Microsoft, Washington State Sue Over Scareware

SEATTLE — Washington State and Microsoft Corp. are suing a Texas man and his businesses for allegedly operating a “scareware” scam on the Internet.

James Reed McCreary IV, of Woodlands, Texas, is the individual named in the lawsuit, filed in King County Superior Court on Oct. 1. Also named are an inactive Texas corporation, Branch Software Inc., which marketed software called Registry Cleaner XP, and Alpha Red Inc., a Houston-based company that provides various web services.

XBIZ’ attempts to reach McCreary were not immediately successful.

The lawsuit targets McCreary for running a business that violated the state Computer Spyware Act and constituted unfair business practices under the state Consumer Protection Act. It seeks a permanent injunction and damages, restitution and civil penalties.

Registry Cleaner XP was advertised to users of computers running Microsoft Windows through pop-ups of the operating system’s Windows Messenger Service. Also known as “net send messages” or “messenger spam,” they were made to look like official Windows messages that told users their computer’s registry was infected and needed repair.

Clicking the message would lead to downloading of free scan software for Registry Cleaner XP and, eventually, a $39.95 charge to install the full version and repair the computer of the “errors discovered by the scan.”

“[Branch Software] are in competition with others engaged in the sale and marketing of these products in and from Washington,” according to the lawsuit.

This kind of scareware is emerging as a money-making scheme by tech-savvy criminals, Ryan Sherstobitoff, chief corporate evangelist global anti-virus specialist Panda Security, told XBIZ.

Its installation on computers could yield credit card numbers as well as other personal information, Sherstobitoff said.

There may be “a whole onslaught of teams around the world” producing scareware, Panda’ security researcher Sean-Paul Sorrell said.

“The line does get kind of blurry between this company and others that are similar to it,” Sorrell said. “This one is a U.S. corporation backing this software with marketing techniques.”

Because there may be instances of organized criminal organizations controlling scareware for their benefit, many adult affiliate programs can find themselves victims of extortion scams, Sorrell told XBIZ.

One example Sorrell gave was Motigo, a web analytics service. Scareware purveyors may purchase advertising for Motigo on affiliate sites. The resulting pop-ups, which weren’t originally intended to be malicious, end up being hijacked.

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

TeamSkeet, MYLF to Launch New Website FamilyStrokes.com

Sister studios TeamSkeet and MYLF are launching a new website, FamilyStrokes.com.

AV Bulletin: Age Verification Hits the Mainstream, Ofcom Sets a Date

Industry stakeholders and free speech advocates have anxiously been awaiting the Supreme Court’s decision in Free Speech Coalition v. Paxton, which could significantly impact state age verification laws around the country. In the meantime, state legislatures continue to weigh and pass AV bills, AV tech providers continue to tout their services, and legal challenges continue to play out in the courts — with some cases on hold pending the SCOTUS ruling in Paxton.

Segpay Names Kristi Greer VP of Sales

Segpay has promoted long-time employee Kristi Greer to the position of vice president of sales.

BranditScan Names Subgirl Newest Brand Ambassador

BranditScan has named content creator Subgirl its newest brand ambassador.

Arcom Reports Age Verification Enforcement Actions Against 5 Adult Sites

French media regulator Arcom released a statement Tuesday detailing recent actions to enforce age verification rules as set forth under France’s Security and Regulation of the Digital Space (SREN) law.

Pineapple Support, Clips4Sale to Host Performers' Partners Support Group

Pineapple Support and Clips4Sale are hosting a free online support group for partners and family members of adult industry professionals.

FSC Mourns the Loss of Board Director Emeritus Mark Kernes

Free Speech Coalition has released a statement regarding the passing of Board Director Emeritus Mark Kernes.

Alexa Creed Launches New Paysite

Creator Alexa Creed has launched a new membership site through MyMember.site.

Choice Talent Management Launches Fan Platform 'ChoiceFilmz'

Choice Talent Management CEO Chris Crisco has launched a new fan platform called ChoiceFilmz.

Dredd to Launch Official Site

Dredd has announced his new website OfficialDreddXXX.com, launching April 20.

Show More