14 DAY TRIAL // Microsoft’s Digital Crimes Unit, along with the company’s Malware Protection Center and Customer Support Services collaborated with the Federal Bureau of Investigations in tackling a fake antivirus scam, which is estimated to have duped victims in paying in excess of $100 million for inexistent protection. On May 27th, the FBI revealed federal indictments for three persons accused of participating in an international cybercrime operation that tricked users in over 60 countries worldwide into buying useless rogue antivirus programs, also known as scareware.
“In the period leading up to these indictments, investigators from Microsoft’s Digital Crimes Unit, with the support of Microsoft’s Malware Protection Center and Customer Support Services, helped provide data to the FBI on damages caused by the scheme. We also testified before the grand jury to provide forensic analysis on the malware involved. Microsoft participated in the case not only because the scheme traded on Microsoft’s name and trademarks as a means of luring victims, but also because we believe in the importance of a trustworthy and reliable computing experience for everyone,” Tim Cranton, associate general counsel, Microsoft Digital Crimes Unit, revealed.
The FBI alleges that Bjorn Daniel Sundin, and Shaileshkumar P. Jain set up Innovative Marketing, Inc. (IM) in Belize, a company that operated a Kiev-based subsidiary called Innovative Marketing Ukraine. While masquerading as selling anti-virus and computer performance/repair software to users, IM was in fact cashing in on the users’ fear that they might have been infected with malware. The FBI also indicted James Reno of Amelia, Ohio, alleging that he owned and operated the Byte Hosting Internet Services, a company that offered call center, technical and billing support to victims.
“The scheme revolved around a form of malware called ‘scareware,’ which falsely persuades consumers that they need to purchase useless and expensive software to protect their computers. Microsoft is proud to have supported the FBI and the U.S. Department of Justice in these cases, which send a clear and important message to cyber-criminals that they will be caught and brought to justice,” Cranton added.
Cranton underlined that this particular case was a clear indication that governments, law enforcement and technology companies needed to work together on a global scale in order to stop international cybercrime. “The scheme in these indictments was global, complex and sophisticated. The scareware went by various names, including WinFixer – meant to mislead consumers into associating the bogus software with trusted Microsoft products. At one time, WinFixer and its variants are thought to have been responsible for 75 percent of scareware worldwide,” he added.