Finally the FTC Steps In

You know your actions have to be really egregious before the FTC steps into the picture. This last week this finally happened to one of the more ingenious spyware scams going around.

If you have a copy of Spy Wiper or Spy Deleter on your system you were a victim of the scam developed by Seismic Entertainment Productions, Inc., Smartbot.Net, and Sanford Wallace.

Since December 2003, they have operated Web sites that distribute spyware. According to the FTC, the defendants used a variety of techniques to direct consumers to their Web sites. At these Web sites, consumers had spyware downloaded onto their computers. The spyware attacks a feature of Internet Explorer’s Web browser to download software, so consumers received no notice that it is being installed and did not consent to its installation.

The spyware changed the consumers’ home pages, changed their search engines, and triggered a barrage of pop-up ads. According to the FTC, the spyware also installed additional software, including spyware that can track the computer use of consumers. As a result of the spyware and other software the defendants installed, many computers malfunctioned, slowed down, or crashed, causing consumers to lose data stored on their computers.

Having created serious problems for consumers, the defendants offer to sell them a solution. The spyware causes the CD-ROM tray on computers to open, and then tells consumers “FINAL WARNING!! If your cd-rom drive(s) open. . . You DESPERATELY NEED to rid your system of spyware pop-ups IMMEDIATELY! Spyware programmers can control your computer hardware if you failed to protect your computer right at this moment! Download Spy Wiper NOW!” Spy Wiper and Spy Deleter, another purported anti-spyware product the defendants promoted, were sold for approximately $30.

One of the nice features Microsoft added to Internet Explorer was the ability to download in the background without the users being aware of it. This was intended to allow a website to download things like new version of Flash or other programs but was soon discovered by people who were a bit more challenged in the ethical sense than even Bill Gates.

Protect yourself from spyware and other rogue code. Keep the security settings on your Internet Zone set to High unless you are familiar with the site. Use the Trusted and Restricted Sites zones to track sites you trust and those you do not.