Scareware scammer makes 10 million bucks in 3 years

happygeek 0 364 Views

A hearty slap on the back must go to authorities in South Korea who have the 41 year old ex-CEO of an antivirus software company with distributing fake security scareware. Lee Shin-ja was formerly CEO with security outfit Media Port, and stands accused of distributing the 'free' bogus software to an astonishing 3.96 million users since 2005, with 1.26 million of them going on to buy the full product. Of course, they only reached for the wallet after being presented by fake security warnings in the free product which directed them to upgrade in order to clean the non-existent infection from their PC.

Shin-ja is reported to have made something in the region of 9.2 billion won (which works out to $10 million) in less than 3 years, all thanks to the $4 per month subscription fee levied for use of Doctor Virus, the application required to fix those fake infections. "More and more people are becoming concerned about the security of their personal computer - and it's all too easy for the unscrupulous to try and fool users into believing a bogus warning," said Graham Cluley, senior technology consultant for Sophos. "Unlike many other countries, it's not uncommon for South Korean computer users to run multiple anti-virus programs at the same time - probably because many of their homegrown solutions don't come with an on-access scanner," explained Cluley. "This environment increases the likelihood that people will download and 'test the water' with a product they stumbled across on the internet. Unfortunately it seems there are cybercriminals desperate for increasing marketshare who are prepared to scare users into making an ill-informed security purchase."

An unnamed spokesperson for Doctor Virus claims that their software is no longer displaying bogus security warnings.

Dani AI

Generated

A concise expert note that adds context and practical next steps to ’s report.

This story describes the March 2008 indictment of Lee Shin‑ja, former Media Port CEO, over the Doctor Virus “scareware” scheme — prosecutors said a free scanner showed bogus alerts and drove large subscription sales. The core allegation (fake warnings upsold as a paid fix) is what attracted the Seoul prosecution. (koreajoongangdaily.joins.com)

Why this mattered then — and still does now — is social engineering, not a clever exploit. Scareware (aka rogue/rogue‑AV) uses fake scans, persistent popups and urgent language to push victims into paying for useless or malicious “cleaners.” The tactic scales (ads, malvertising, affiliate networks) and can make even cautious users pay if the UI and timing look official. (crn.com)

If the thread is being read for practical guidance: basic triage and recovery steps that work years later

  • Don’t pay or re‑enter card details; document any charges and receipts.
  • Contact your card issuer immediately and follow the written‑dispute route (FTC sample letter and 60‑day timing rules apply for billing errors). Keep copies.
  • Run known, reputable removal tools (Windows Defender/Windows Defender Offline, Malwarebytes, or similar) in Safe Mode or using an offline scanner; if the system is heavily compromised, back up data and consider a clean OS reinstall.
  • Report the scam to consumer authorities (FTC/your local consumer protection/USA.gov) and keep screenshots/URLs for enforcement. (consumer.ftc.gov)

A final practical note tying back to replies: ’s scepticism about vendor statements is warranted — vendor PR after a probe is not the same as independent validation. ’s later post looks like a product plug and should be treated with caution; always verify AV vendors against independent test labs (AV‑Comparatives / AV‑TEST) and independent removal guides before installing anything. (escapebusinesssolutions.com)

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Dani 5,664 The Queen of DaniWeb

I love the last line of your story, that they released a statement acknowledging they were doing this and that now they aren't, so now it's okay to go ahead and buy their software.

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happygeek 2,411 Most Valuable Poster

The phrase 'beggars belief' comes to mind, doesn't it? :)

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Anthea_123 -7 Newbie Poster

Rid of those pesky bugs you pick when surfing the net.
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