Feeds

Spamford Wallace's MySpace riches come under attack

The FTC's quest for spam stopping balls

5 things you didn’t know about cloud backup

Analysis Anybody who says crime doesn't pay obviously hasn't talked to Sanford Wallace. In just six months' time, the prolific purveyor of spam and spyware engineered a scam on MySpace that netted at least $555,850, according to court documents filed this week.

The brazen scheme used a combination of malware and social engineering to push MySpace users onto porn- and gambling-related websites under Wallace's control. It began in late 2006, just months after Wallace and business associate Walter Rines settled charges related to spyware by agreeing to pay the Federal Trade Commission just $50,000 combined.

Now the FTC is trying to grow a pair. In a motion underscoring the difficulty of stopping spyware purveyors like Wallace, attorneys from the agency asked the federal judge overseeing the settlement to find the men in contempt for violating the terms of the settlement agreement. The commission seeks an order requiring the men to surrender their profits in the MySpace scheme.

"The contempt defendants repeatedly violated this court's permanent injunction by downloading computer code to MySpace users without their consent, 'pagejacking' or redirecting those users to websites that barrage them with advertisements, 'mousetrapping' or hindering those users from departing those websites to subject them to more advertisements, and 'phishing' for or otherwise capturing users' personal information without their consent," the motion reads.

Attempts to locate Wallace, Rines and their firm, Online Turbo Merchant, for comment were unsuccessful.

The Making of Spamelot

The saga began in September of 2005, when the FTC sued Rines and his now-defunct company, Odysseus Marketing. The complaint alleged they engaged in deceptive or unfair practices by secretly downloading spyware onto end-users' machines. Among other things, the drive-by installs subjected victims to pop-up ads, modified web browser search results and installed third-party programs without notice.

In late 2006, Rines and his cohorts entered into a settlement that ordered them to pay $1.75m, but the court agreed to suspend all but $10,000 of the penalty in light of the defendant's sworn inability to pay. In a separate action, a defendant affiliated with Wallace had been ordered to pay just $40,000. The parties in both cases agreed to a lengthy list of prohibitions that, among other things, prevented them from exploiting software vulnerabilities and required them to obtain consent before downloading software onto consumers' computers.

According to the FTC, the ink hadn't even dried on the agreement before Wallace and Rines were plotting a complex assault on MySpace. Wallace created more than 11,000 fraudulent profiles which he used to send large quantities of spam to legitimate users of the social networking site. He also set up pages that tricked users into revealing the log-in credentials for their accounts. Armed with this information, he used scripts that automatically accessed more than 300,000 accounts without permission so he could flood profile pages with at least 890,000 comments that linked to his websites. Wallace also took the liberty of bundling in code that prevented irate users from deleting the links.

The pages he linked to included freevegasclubs-dot-com and real-vegas-sins.com. They also contained so-called mousetrapping code, which made it hard for people who got redirected to them to leave.

According to a spreadsheet obtained by FTC investigators, the scheme generated at least $555,850 from advertising networks between November 21, 2006 and May 18, 2007. The actual amount is likely much higher, the motion argues.

The essential guide to IT transformation

Next page: Wallgotten Gains

More from The Register

next story
One HUNDRED FAMOUS LADIES exposed NUDE online
Celebrity women victimised as Apple iCloud accounts reportedly popped
Rubbish WPS config sees WiFi router keys popped in seconds
Another day, another way in to your home router
Goog says patch⁵⁰ your Chrome
64-bit browser loads cat vids FIFTEEN PERCENT faster!
NZ Justice Minister scalped as hacker leaks emails
Grab your popcorn: Subterfuge and slur disrupts election run up
HP: NORKS' cyber spying efforts actually a credible cyberthreat
'Sophisticated' spies, DIY tech and a TROLL ARMY – report
NIST to sysadmins: clean up your SSH mess
Too many keys, too badly managed
Scratched PC-dispatch patch patched, hatched in batch rematch
Windows security update fixed after triggering blue screens (and screams) of death
Attack flogged through shiny-clicky social media buttons
66,000 users popped by malicious Flash fudging add-on
New Snowden leak: How NSA shared 850-billion-plus metadata records
'Federated search' spaffed info all over Five Eyes chums
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?