FTC Floats Spammer Bounty Scheme
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The FTC stipulated that, if successful, a bounty system for spammers would have to do several things: tie eligibility to a court order, rather than civil penalties; fund rewards separately from
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Unwanted e-mail from affiliates of an adult-entertainment company have garnered a $465,000 penalty in a settlement with the FTC, the latest in the agency's successful crackdown on sexually explicit junk e-mail.
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The vendor adds to its growing list of spam lawsuits one aimed at a service provider that hosts spammers. By Thomas Claburn. Cheapbulletproof.
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Lycos Europe has released a special screensaver for Windows and the Mac OS platforms that will attack spam web pages. The screensaver âMake Love No Spamâ will overload a variety of spam servers by flooding
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X marks the pest A Dutch spammer who used compromised PCs to spamvertise web sites has been fined â¬75,000 ($97,000) by Opta, the Netherlands telecoms regulatorâ¦
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An intricate scheme that included a "pump-and-dump" spam scam has netted its perpetrators an eight-figure return... and an assortment of jail sentences.
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The U.S. Federal Trade Commission (FTC) has asked a federal court to require an alleged Web page hijacking operation to obey previous orders barring unfair and deceptive practices.
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Thar she blows Spam messages exploiting the publicity surrounding the release of the latest instalment of the Pirates of the Caribbean film franchise are being used to trick users into installing Trojan horse malware.â¦
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An online advertiser that drove traffic to its Web sites by sending out spam with misleading subject lines has agreed to settle a U.S. Federal Trade Commission (FTC)&#160;complaint charging that it failed to tell consumers they had to spend money to receive so-called free products, the FTC announced Wednesday.The settlement requires Member Source Media to disclose the costs and obligations associated with the advertised products and services, and bars the company from sending e-mail that violates the CAN-SPAM Act, which regulates the sending of unsolicited e-mail. The company must also pay $200,000 in civil penalties, according to the settlement approved Wednesday in the U.S. District Court for the Northern District of California.Member Source Media -- doing business as ConsumerGain.com, PremiumPerks.com, FreeRetailRewards.com, and GreatAmericanGiveaways.com -- and the company&#8217;s owner, Chris Sommer, used deceptive spam and online advertising to lure customers to its Web sites, the FTC alleged.The company used e-mail subject lines such as, &quot;Congratulations. You&#39;ve won an iPod Video Player,&quot; &quot;Here are 2 free iPod Nanos for You: confirm now,&quot; and &quot;Second Attempt: Target Gift Card Inside,&quot; the FTC said in a press release. The company&#39;s Web-based ads contained similar offers: &quot;CONGRATULATIONS! You Have Been Chosen To Receive a FREE GATEWAY LAPTOP.&quot;When consumers arrived at Member Source Media&#39;s Web pages, they were led through a series of ads for goods and services from third parties.To qualify for their &quot;free products,&quot; consumers would have to first wade through pages of &quot;optional&quot; offers. Once they navigated those pages, they had to participate in a series of third-party promotions requiring them to do things such as purchase products, subscribe to satellite television service, or apply for multiple credit cards, the FTC said.Member Source Media&#39;s failure to disclose material facts was deceptive and violated the FTC Act, the FTC said. In addition, the agency charged that deceptive subject lines in Member Source Media&#39;s spam e-mails violated the federal CAN-SPAM Act.The settlement requires that Member Source Media clearly disclose in its ads and on its Web pages that consumers have to spend money or incur other obligations to qualify for a free product or service. The settlement also requires the company to provide a list of the obligations a consumer is likely to incur to qualify for their chosen item -- such as applying for credit cards or purchasing products.
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Spammers will find that the money to be made by bombarding computers with junk e-mails is not worth the risk. A Virginia jury sent a sobering message last week to the unscrupulous purveyors of junk e-mail.
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A bogus e-mail message supposedly sent by the U.S. Federal Trade Commission contains spyware and targets corporate and banking executives as well as consumers, the FTC said Monday.
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(InfoWorld) - Spammers have found a way to mine free Web-hosting services for cash. Online scammers have long used free hosting services such as Yahoo Geocities or Tripod as a way to get around e-mail filters that might otherwise recognize their spammy Web sites. But now some enterprising spammers have begun selling each other these free Web pages, according to security vendor McAfee Inc. For US$25 per week a spammer will sell 50 Web-hosting accounts that can be used to redirect Web traffic to sites that normally would be flagged. "These 'link providers' create and maintain thousands of free hosting accounts on behalf of the spammers," wrote McAfee's Nick Kelly in a recent posting to McAfee's Avert Labs blog. That posting can be foundÂ here. "They know that the bigger hosts are unlikely to get blacklisted because they have so many legitimate users," he added. Scammers also use the free Web pages to try to manipulate search engines, by making it look as if their Web sites are widely linked, said Adam O'Donnell, senior research scientist with Cloudmark Inc., an e-mail filtering company. And while the free hosting providers are taking steps to shut down this abuse, they appear to be fighting a losing battle. In late June, Cloudmark researchers were seeing about 1,500 phony URLs (uniform resource locators) on any given day on one of the most abused free hosting services (O'Donnell declined to name names). One month later, that number had jumped to 3,500. Spammers are simply able to out-pace the hosters' security teams, O'Donnell said. "They will gain more hosts for their pages than the company is able to take down," he said. The free hosters have been placed in a tough position because they do not want to shut down legitimate users, but they also do not have the technical resources to mine spam for Web pages that are being misused, O'Donnell said. Lately, however, the hosters have been partnering with security vendors to address the problem. Cloudmark is working with some hosting providers, hoping to sell them "reputation" information that tells them how many times their member URLs are being seen in spam. McAfee has been providing similar information to an undisclosed service provider, Kelly wrote. "This relationship has cut the abuse observed by us on that provider by over 90 percent in less than a week." He added, "let's hope those spammers are buying their new watches from pound$hop rather than Bolex this summer."
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(InfoWorld) - Two consumer protection groups are asking the U.S. Federal Trade Commission (FTC) to investigate FastMP3Search.com.ar, a Web site that distributes software that can be used to search for digital music on the Web. The FastMP3Search plugin disables the Windows Firewall, installs adware and Trojan horse programs, and generally hobbles the user's PC, said John Palfrey, the Harvard Law School professor who is StopBadware.org's co-director. The software is also virtually impossible to remove once installed, he added. StopBadware.org and the Center for Democracy and Technology plan to file a formal complaint with the FTC on Thursday. "We are asking the FTC to take a close look at an application that we consider to be the worst of the bad applications that we've seen over the course of the last year," Palfrey said. Representatives from FastMP3Search.com.ar could not be reached immediately for comment. The Web site is registered to a company called Direct S.A., based in Buenos Aires, according to the Network Information Center Argentina domain name database. StopBadware.org was also unable to reach representatives from the company before filing its complaint Palfrey said. The company's Web site tells users that the software will provide a fast way to search the Internet for downloadable music files, "in exchange for your agreement to also install our plugin software, which may occasionally display ads on your computer." Although the FTC has sought court orders to shut down Web sites in the past, the fact that FastMP3Search.com.ar appears to be based in Argentina complicates matters, Palfrey admitted. Still the FTC has worked on international efforts to fight spam and online fraud. "When an application is hosted outside of the U.S., but is plainly affecting U.S. consumers, they can coordinate with other governments," Palfrey said. "We would hope that they would start an investigation of this application." FTC representatives could not be reached immediately for comment. Formed earlier this year with funding from Google Inc. Lenovo Group Ltd., and Sun Microsystems Inc., StopBadware.org has issued reports on dozens of software products that engage in questionable or downright malicious behavior. It has exposed problems in everything from Kazaa to the Jessica Simpson Screensaver, to AOL LLC's free client.
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Internet users are being given the chance to hit back at the spammers that have become the scourge of the web, thanks to free software being distributed by Lycos Europe, the internet portal.
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com. Spammers are trying to make their junk mail look more legit by adopting the same technologies intended to stem their message tsunamis, said a filtering firm Wednesday.
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(InfoWorld) - Three U.S. men and one man living in France have pleaded guilty to charges related to a stock manipulation scheme that included sending out tens of millions of spam messages to pump up the stock value of 15 companies, the U.S. Department of Justice said Thursday. The four men cost investors more than $20 million in their so-called pump-and-dump scheme, the DOJ said. Michael Saquella, also known as Michael Paloma, 47, of Mesa, Arizona., pleaded guilty in U.S. District Court for the Eastern District of Virginia in Alexandria on Aug. 20. Lawrence J. Kaplan, 63, of Scottsdale, Arizona, pleaded guilty on July 25, in Alexandria to similar charges. Henry "Hank" J. Zemla, 38, of Harris Township, Michigan, also pleaded guilty in federal court in Alexandria on July 20. The three defendants are scheduled to be sentenced between late November and early February. Saquella pleaded guilty to a criminal information charging him with one count of conspiracy to commit securities fraud and one count of electronic mail fraud involving 15 publicly traded companies. Kaplan pleaded guilty to a criminal information charging him with one count of conspiracy to commit securities fraud involving 14 of these companies, and Zemla pleaded guilty to a criminal information charging him with one count of conspiracy to commit securities fraud involving one of the companies. The plea agreements for all three defendants were unsealed Thursday. The scheme involved stocks from companies including eDollars, Xtreme Technologies, and PokerBook Gaming. Justin Medlin, 26, of Paris, also pleaded guilty in federal court in Alexandria on Aug. 20 to a criminal information charging him with one count of electronic mail fraud and one count of conspiracy to commit securities fraud and electronic mail fraud involving seven of the companies. Medlin's plea agreement was unsealed Thursday. He will be sentenced on Nov. 30. The maximum penalties for each of the fraud charges is five years in prison and a $250,000 fine. The stock manipulation schemes generally followed a similar pattern, the DOJ said. The defendants generally solicited small, privately held companies that needed to raise money. One of the defendants would offer to help the company raise significant money through the sale of the company's stock, and then the defendants would list the company's shares on the Pink Sheets, a price quotation system primarily used for trading small companies' stocks. The group of defendants would then gain control of a majority of the stock of the company, the DOJ said. The co-conspirators then engaged in deceptive and manipulative trading practices to boost the price and volume of the company's stock, the DOJ said. In some cases, members of the conspiracy encouraged investors to purchase companies' stock by giving the investors free-trading shares in return for buying blocks of shares at agreed-upon prices, thereby creating the illusion of trading volume and active investor interest. In other instances, members of the conspiracy bought and sold shares of the companies' stock between and among themselves to give the appearance of investor interest, the DOJ said. The co-conspirators also falsely manipulated the price and volume of each company's stock by making materially false and misleading statements in news releases and in spam e-mails distributed by Medlin and other spammers to tens of millions of U.S. e-mail addresses, in an effort to create artificial demand for the companies' stock, the DOJ said. In related actions, the U.S. Securities and Exchange Commission has filed civil charges against Saquella and Kaplan for their part in the schemes to manipulate the price and volume of the companies' securities. Three other defendants, Steven P. Luscko, Gregory A. Neu, and Brian G. Brunette, have pleaded guilty and have been sentenced in federal court in Alexandria for their roles in related stock manipulation schemes. Luscko and Neu were each sentenced to five years in prison and Brunette was sentenced to one year in prison.
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New software allows recipients of spam to band together to target known websites behind the messages. The idea is to bombard the sites with messages, slowing them down and making them more expensive to run.