Scareware
Scareware is software that is installed onto a user's computer and makes the user think that they've been infiltrated by a computer virus or a worm. At the same time, it offers the user the chance to clean their computer by purchasing a computer program that will scan the hard drive and remove all threats. The threat is fake, but it can seem real enough to get people to put in their credit card numbers and purchase the "solution". In these cases, the creator of the malicious software manages to make a quick buck from a frightened end user.
In one case, the creators of the scareware had infected and collected money from over 1 million people, all of whom payed $40 for the solution. In December of 2008, the FTC brought charges against the company in the amount of $8 million dollars, which was set aside to go to the victims who were duped out of their money.
I'm not a super savvy business person, but doing something that brings in $40 million and only costs you $8 million seems like an awfully high profit margin, even for a software product. I'm not sure the FTC is going to be putting a stop to these kinds of shenanigans by issuing what seems like little more than a financial slap on the wrist.
In one case, the creators of the scareware had infected and collected money from over 1 million people, all of whom payed $40 for the solution. In December of 2008, the FTC brought charges against the company in the amount of $8 million dollars, which was set aside to go to the victims who were duped out of their money.
I'm not a super savvy business person, but doing something that brings in $40 million and only costs you $8 million seems like an awfully high profit margin, even for a software product. I'm not sure the FTC is going to be putting a stop to these kinds of shenanigans by issuing what seems like little more than a financial slap on the wrist.