A company which makes software that infiltrates users' computers and demands $30 to be removed has been targeted by US authorities.

The US Federal Trade Commission (FTC) is has asked a federal court to shut down the operations of Seismic Entertainment Productions and SmartBot.Net. The FTC action was initiated after it received a complaint from a Washington consumer group, the Center for Democracy and Technology. This is the first time that the FTC has taken action against a company that produces so-called "spyware".

The software exploits a flaw in Microsoft's Internet Explorer to gain access to a computer without the users' knowledge. The spyware interferes with the operation of the web browser, causes CD-ROM trays to slide open, slows down the computer or causes it to stop working entirely. The spyware then invokes a number of pop-up messages which urge consumers to buy programs called Spy Wiper or Spy Deleter to fix the problem for a fee of $30. Regardless of the veracity of the FTC's allegations, this tactic is not unknown among unethical spyware developers.

US gov targets spyware outfit | The Register


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