Feeds

Spamford Wallace's MySpace riches come under attack

The FTC's quest for spam stopping balls

Choosing a cloud hosting partner with confidence

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.

Intelligent flash storage arrays

Next page: Wallgotten Gains

More from The Register

next story
Webcam hacker pervs in MASS HOME INVASION
You thought you were all alone? Nope – change your password, says ICO
You really need to do some tech support for Aunty Agnes
Free anti-virus software, expires, stops updating and p0wns the world
USB coding anarchy: Consider all sticks licked
Thumb drive design ruled by almighty buck
Attack reveals 81 percent of Tor users but admins call for calm
Cisco Netflow a handy tool for cheapskate attackers
Privacy bods offer GOV SPY VICTIMS a FREE SPYWARE SNIFFER
Looks for gov malware that evades most antivirus
Patch NOW! Microsoft slings emergency bug fix at Windows admins
Vulnerability promotes lusers to domain overlords ... oops
prev story

Whitepapers

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.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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?
Managing SSL certificates with ease
The lack of operational efficiencies and compliance pitfalls associated with poor SSL certificate management, and how the right SSL certificate management tool can help.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.