Stories
Slash Boxes
Comments

News for nerds, stuff that matters

A Day in the Life of a Spyware Company

Posted by ScuttleMonkey on Sun Jul 09, 2006 01:26 AM
from the get-rich-quick-schemes dept.
prostoalex writes "Business Week has a detailed expose of Direct Revenue. The article has some juicy details on the everyday workings of a spyware outlet, talks about the the business model and advertisers who funnel cash to Direct Revenue, and even mentions Direct Revenue's anti-spyware achievements (the company's installer blasted away competing spyware apps, so that the user's computer wouldn't be overwhelmed with redundant pop-ups)."
This discussion has been archived. No new comments can be posted.
Display Options Threshold:
The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
  • by bunions (970377) on Sunday July 09 2006, @01:31AM (#15686028)
    http://it.slashdot.org/article.pl?sid=06/07/07/155 1237 [slashdot.org]

    It's the same article in a different place.

    Additionally, it's in a different place, but it's the same article.
  • "Anti-spyware Achievements"? (Score:5, Interesting)

    by Pantero Blanco (792776) on Sunday July 09 2006, @01:32AM (#15686030)
    "and even mentions Direct Revenue's anti-spyware achievements (the company's installer blasted away competing spyware apps, so that the user's computer wouldn't be overwhelmed with redundant pop-ups)."

    The crack dealer on one side of the street achieved a victory against crime today when he killed the competing dealer on the other side.

    I very much doubt that their reasons for blasting away competing apps were for the benefit of the user. Most likely, they don't want the user's computer to slow down enough for them to notice and do a spyware sweep.
  • by atarione (601740) on Sunday July 09 2006, @01:33AM (#15686031)
    by spamming this story multiple times
  • Missing important details (Score:5, Funny)

    by arivanov (12034) on Sunday July 09 2006, @01:35AM (#15686032)
    (http://www.sigsegv.cx/)
    Latitude, longitude, altitude.
  • Hmm. (Score:5, Funny)

    by AndreiK (908718) <AKrotkov@gmail.com> on Sunday July 09 2006, @01:47AM (#15686051)
    So if you run their program and their competitor's program at the same time, they will kill each other off? Who needs virus scanners now?
    • Re:Hmm. by LazyDino (Score:2) Sunday July 09 2006, @01:56AM
      • Re:Hmm. by bmo (Score:2) Sunday July 09 2006, @03:09AM
    • Re:Hmm. (Score:5, Funny)

      by bblboy54 (926265) on Sunday July 09 2006, @02:04AM (#15686074)
      (http://www.bobkmertz.com/)
      So if you run their program and their competitor's program at the same time, they will kill each other off? Who needs virus scanners now?

      Actually, who needs this? Windows has this feature built right in.
      [ Parent ]
      • Re:Hmm. by EMiniShark (Score:1) Sunday July 09 2006, @04:56AM
  • Well then (Score:4, Interesting)

    by Dread Pirate Shanks (860203) on Sunday July 09 2006, @02:36AM (#15686130)
    What do the items on this list have in common?

    - Cingular Wireless
    - Vonage
    - Kazaa
    - JP Morgan Chase
    - Delta
    - Travelocity
    - Priceline.com

    All companies that will no longer have my business, ever. (not that Kazaa would anyways)

    I just wish I had the complete list
  • QA for a spyware company? (Score:5, Funny)

    by teratogenicbenzene (887723) on Sunday July 09 2006, @02:44AM (#15686142)
    (http://www.steelsnowflake.com/)
    Douglas Kee, then Direct Revenue's chief of quality assurance (QA)...

    Isn't having a quality assurance branch for a spyware company kind of an oxymoron?
    That's like having an "ethics department of sudan" or "NSA oversight committee".

    Sigh...
  • by r3st2 (987153) on Sunday July 09 2006, @03:25AM (#15686194)
    What are they thinking when they go about ruining peoples computers. I feel bad for all the windows users that complain about their computers getting slower. Its probably this companies fault.
  • by Anonymous Coward on Sunday July 09 2006, @04:10AM (#15686241)
    For persons concerned about spyware it should be pointed out that the important thing is not the spyware company,

    It is the companies which employ them.

    The article glosses over that with only slight mention. . .

    As a victim of the Aurora trojan on a Windoze box I became intimately aware of Direct Revenue and the damage they have caused to many people. Until this article, however, I always assumed they were supported by pr0n sites and spammers.

    Instead it turns out Vonage is their main customer!

    It's bad enough that Vonage plasters their annoying ads all over the net, and plays their annoying jingle on every channel of TV. Obviously, though, that is not sufficient. They must also use spyware to hook customers and violate more US and International laws.

    Vonage has a history of this type of illegal behavior (in chronological order):

    1. Its Chairman, Jeffrey Citron, was charged by the SEC with Securities violations due to illegal trades, while he was Chairman of Datek Securities, before starting Vonage.

    2. Vonage has consistently engaged in anticompetitvive behaviour against its competitors by blocking SIP calls, and locking down their devices to prevent customers from using the devices with competitors.

    3. Vonage has consistently engaged in deceptive advertising when selling their equipment and services by not disclosing that the equipment is not really owned by the consumer (it can't be unlocked to work with other providers).

    4. Vonage has consistently engaged in deceptive marketing by convincing customers to LNP port their existing phone number to Vonage when the LNP port could not be done. Even though Vonage could not port the number due to lack of a CLEC in their area code, Vonage reps would tell the customer it could be done "soon".

    5. Vonage deceptively operates a web site at Vonage-Forum.com. Only recently has a notice gone up that the site is not operated by Vonage. The site, however, uses the trademarked Vonage name and logo, and has Vonage ads on it.

    6. The whole Vonage IPO stock fiasco: not surprising if you noticed item #1.

    If Vonage doesn't qualify for U.S. Federal Prosecution on at least ONE of these items something is clearly wrong with our legal system that supposedly was fixed after Enron/Worldcom.

    • Re:The IMPORTANT part of the article: VONAGE! by MrNougat (Score:2) Sunday July 09 2006, @09:19AM
    • by grylnsmn (460178) on Sunday July 09 2006, @10:43AM (#15687014)
      Let's look at each of your points.
      1. Its Chairman, Jeffrey Citron, was charged by the SEC with Securities violations due to illegal trades, while he was Chairman of Datek Securities, before starting Vonage.
      If he was charged before, then he was either found not guilty (in which case from the law's standpoint he didn't do anything wrong and it can't be held against him) or he was found guilty and paid the penalty for his actions (in which case, unless the penalty included abandoning the business field, he is also in the clear).

      2. Vonage has consistently engaged in anticompetitvive behaviour against its competitors by blocking SIP calls, and locking down their devices to prevent customers from using the devices with competitors.
      They sold you a device designed to work with their service. What law requires them to provide support to you in using that device outside of hte parameters for which it was designed and sold? You are free to modify your device all you want, but they are not responsible for helping you or fixing it if you make it unusable.

      3. Vonage has consistently engaged in deceptive advertising when selling their equipment and services by not disclosing that the equipment is not really owned by the consumer (it can't be unlocked to work with other providers).
      It was sold for the purpose of connecting to the Vongage service, and no representation was made that it can be connected to other services (at least, I can't find any in the materials I got with my adapter). If anything, they are up front about it. You are still free to modify it if you want, but they are not required to help you, nor are they required to make it easy for you. If you want an unlocked adapter, you need to search out and buy an unlocked adapter.

      4. Vonage has consistently engaged in deceptive marketing by convincing customers to LNP port their existing phone number to Vonage when the LNP port could not be done. Even though Vonage could not port the number due to lack of a CLEC in their area code, Vonage reps would tell the customer it could be done "soon".
      This one may have some merit, but in order to really prosecute it, you would need to establish that it is company policy, not simply the actions of individual customer service reps.

      5. Vonage deceptively operates a web site at Vonage-Forum.com. Only recently has a notice gone up that the site is not operated by Vonage. The site, however, uses the trademarked Vonage name and logo, and has Vonage ads on it.
      Just because a site uses the official name and logo doesn't mean that it is operated by those people, especially if they have a notice saying that they aren't. Advertising also does not equal ownership. Vonage puts ads on a lot of sites that they don't own, operate, or control.

      6. The whole Vonage IPO stock fiasco: not surprising if you noticed item #1.
      I read the prospectus, and it was rather clear from the information provided that it would not do all that well. That is the fault of the people who either bought the stock without reading the prospectus, or who bought it in spite of all of the warnings. Those who made legal commitments to purchase stock but then wanted to back out after seeing the drop in price still have that legal obligation to purchase the stock.

      Of the items you listed, you have at most one valid point. Perhaps you might reconsider a lot of your position.
      [ Parent ]
    • 1 reply beneath your current threshold.
  • Ironic or am I being pickey (Score:2, Insightful)

    by bunbuntheminilop (935594) on Sunday July 09 2006, @04:38AM (#15686266)
    An article about internet advertising that makes me click through 5 pages for just one article. Its a shame I didn't click past the first page.
  • is it just me (Score:1)

    by xmodem_and_rommon (884879) on Sunday July 09 2006, @05:00AM (#15686296)
    Is it just me or is something broken around here? This story has been up for hours, and still only 2 comments, none of which are above the default viewing threshold? huh?
  • by Carpe Insomnia (983727) on Sunday July 09 2006, @05:19AM (#15686318)
    I have seen first hand that Norton and McAfee don't work on this. Simply run Ad-aware and ewido, both free, and both get the job done. But people seem to spend millions each year on crappy programs that perpetuate spy-ware and viruses. Stupid humans. I wonder if one can sue a company such as Revenue Direct for, well, I don't know, messing up someones computer? If only sleep could be caught.
  • Why is spyware not illegal? (Score:5, Insightful)

    by AriaStar (964558) on Sunday July 09 2006, @05:29AM (#15686343)
    (Last Journal: Tuesday January 16 2007, @03:06AM)
    It amounts to stalking, spying, possibly breaking and entering, and stealing, and the porn pop-ups break federal laws.

    When you go to many websites, such as Amazon or Adam & Eve, you can expect as much privacy as in a local mall. But if someone were to follow you around from store to store, at that point it would be stalking.

    Now when that "someone" (spyware company) breaks into your property (your computer) to install something without your consent (spyware programs), it's beyond just your typical stalking and into spying. Add to the charge that this "person" didn't have permission to enter your property in any way and you can add breaking and entering to this.

    To run this program that you didn't consent to having uses power you are paying for. If it causes your system to crash, if you are someone who can't fix it, you've got to pay someone to repair it for you. Money out of your pocket. Theft. At the least of your own time to fix it.

    When you go to a porn site, you usually have to click something saying you are at least 18 or of legal age to view sexually explicit material, and that you consent to doing so. If you were to sit a minor in front of the computer, or were to allow a minor to be nearby while viewing said material, you've commited an offense for which you could be required to register as a sex offender. But yet porn pop-ups happen on sites that aren't sexual in nature, sites that kids sometimes visit. The spyware company is giving no notice whatsoever that sexual material is about to pop up, no chance to consent or for children to be removed from the room first. Would this not be a violation of federal laws by the spyware companies by exposing minors to sexual material?

    So I repeat, why is spyware not illegal?
  • $%*&^! web-designer BS (Score:1, Offtopic)

    by coats (1068) on Sunday July 09 2006, @08:15AM (#15686617)
    (http://www.baronams.com/staff/coats/)
    I'm running
    SeaMonkey 1.0.1
    Mozilla/5.0 (X11; U; Linux i686; en-US; rv:1.8.0.2) Gecko/20060405 SeaMonkey/1.0.1
    but the web site gives me:
    Message boards - unsupported web client
    This feature requires a more recent version of Microsoft Internet Explorer or Mozilla Firefox. To download the latest version of Microsoft Internet Explorer, visit the Internet Explorer Web site.
    Damned incompetent web-site designers!!!! P?
  • I was browsing 4chan the other day, in their Random section, looking for interesting (ha) pictures to add to my new website that's been in the works for way too long, and bam -- I get tons of popups, a bunch of icons appear on my desktop, and I've got three freakin' toolbars (unhideable toolbars, mind you) in all of my Explorer windows. What's more -- I was using Firefox. I have IE's settings set to the highest possible security, so that even in the worst case that IE lauched for any reason, I won't get screwed. But wow, I certainly did not expect Firefox to be vulnerable to spyware. (I have since reformatted -- I tried everything to get rid of the toolbars and extra crap. I eventually got rid of most of it, but the thing made it so I couldn't right-click anything except for icons in Explorer. Arrrr. Why didn't I view 4chan on my Slackware box? -- More digression: the spyware managed to install some crappy program, which was actually listed in Add/Remove Programs, but the program was using over 10 MB. How can spyware install so quickly if it's so large?)

    I see a lot of computers with spyware. Most, if not all, of the computers that I fix have been completely demolished by malware, spyware, adware, and just general crap. A lot of times, it's from user ignorance (the kind of people that don't even skim EULAs). However, many times, it's from them visiting a website that looks just fine, and the website using some kind of hole in IE to screw over the viewer.

    So I must ask, how is exploiting security holes a legal business method? It's obvious that most spyware-creating companies use this tactic, since it's obvious that no one in their right minds would accept spyware voluntarily. Since many times it is known (through thorough searches and whatnot) who created the spyware with which one's machine is infected, I find it hard to believe that no serious legal action has been taken up with these companies.

    I am truly displeased to see even Firefox becoming a serious target for these jackasses. If Opera felt better (I have this thing about the "feel" of some programs that I can't explain) I might think about almost downloading it.
  • ...Steven Jobs, he comes to me.

    Speaking words of wisdow, 'A-P-P-L-E!'"

    OS X...because making UNIX friendly was easier than fixing Windows.
  • by Cygnusx12 (524532) on Sunday July 09 2006, @09:45AM (#15686861)
    I've been thinking about this alot lately, and why *not* make Site Operator's or ISP's liable for the client's activities?
    I mean, If an advertiser or client becomes a liability, wouldn't spyware go away on it's own without having to be illegal?

    I'm sure this angle has been covered before.. but it's early and I'm still on my first cup of caffiene.

    Companies have the right to advertise, but (imho)they don't have the right to install *anything* on your PC. (For that matter, what is acceptable advertising on the net?)
  • by humankind (704050) on Sunday July 09 2006, @10:53AM (#15687037)
    (Last Journal: Wednesday November 05 2003, @03:12AM)
    Direct Revenue has struggled to fend off a lawsuit filed in April by New York Attorney General Eliot Spitzer. The state court action alleges that Direct Revenue crossed a legal line by installing advertising programs in millions of computers without users' consent. Shining a light on the shadowy spyware trade, the suit asserts that the company violated New York civil laws against false advertising, computer tampering, and trespassing.

    Why aren't these guys in jail? Computer tampering is a federal felony criminal offense. If one of the infected computers ends up being a government machine, under the USA Patriot Act, this could be a capital crime. Why is the NY AG dicking around with some boneheaded civil lawsuit? They should march into the offices with federal marshalls and put these guys in chains.
  • suuuurre riiiight, whatever. (Score:4, Interesting)

    by v1 (525388) on Sunday July 09 2006, @11:04AM (#15687072)
    (http://vftp.net/ | Last Journal: Saturday December 09 2006, @09:52PM)
    My favorite page-1 quote from that article would have to be Some advertisers say their messages have appeared in pop-ups without their permission.

    How STUPID do they think we are? As an advertiser, you don't accidentally advertise for someone that's not paying you. When's the last time you saw a commercial on TV that the retailer denied they paid for? The spammers are charginng a lot for their service, and there is no shortage of customers, so I'm quite certain they are only spamming for paying customers.

    More than likely these are cases where someone in marketing got the brilliant idea to advertise with spyware and started it without really letting their uppers know what the fallout was going to be. Then six months later when the CEO's in-box is piled high with complaints they deny they had anything to do with it.
  • Hose your PC for $30 (Score:3, Funny)

    by DaveInAustin (549058) on Sunday July 09 2006, @11:07AM (#15687079)
    (http://www.abremod.com/)
    FTFA: by accepting its ads, consumers get popular software applications free of charge that otherwise can cost up to $30 apiece.
    Wow, I can save $30 by making my $500 PC unusable.
  • If I'm a Legit Business... (Score:5, Interesting)

    by istartedi (132515) on Sunday July 09 2006, @12:26PM (#15687342)
    (Last Journal: Thursday April 18 2002, @07:50PM)

    ...how can I prevent my ads from being served by spyware? How about a clause in my contract with the advertising company that says "Ads served by provider and any subcontractor will not be served by pop-up, and will only be served as the result of a user willfully navigating to a web page which serves ads, and may not be served as the result of any additional software installed on the user's computer. The definition of 'pop-up', 'willfully navigating' and 'installed' remains at the discretion of the customer, and we reserve the right to terminate this contract if the advertising agency is unable to assure us that it meets these criteria."

    For some small business this wouldn't work too well, but if big companies started doing it, and it became standard operating procedure for corporations, it would help a lot. Suddenly, other advertisers will just stop dealing with these guys.

    Nailing down the definitions is a bit tricky, and IIRC there was a case where some company sued over being designated as malware, so this approach isn't a cure-all. Going after the actual technical definition of something is a bit more effort, but it quashes the arguments of companies that might complain they are being singled out prejudicially.

    Also, pornographers and other shady businesses will always do stuff like this, but at least we'll maintain the association of sleaziness with pop-ups and spyware, which is where it belongs.


  • Personal email at one point was getting so bad that I was concidering telling people to send me a fax instead of an email.
    I do have a fax machine so if it would come to that crunch, I have it in preparedness. It has an added bonus that people who send junk faxes can be easily prosecuted.

  • by SnarfQuest (469614) on Monday July 10 2006, @02:24AM (#15689513)
    These spyware programs must talk to their host, so why hasn't someone reverse engineered the protocol, and written a program to flood them with crap. Make it look like someone clicked on their ad's a million times. Report back as a billion infected machines. If their statistics always come up as crap, their "customers" might get pissed off enough to quit paying them. It might also help to mask information being stolen from real people.
  • How to stop them in three easy steps:

    find executives
    kill them (or pay a crackhead to do it)
    rejoice


    Thus illustrating the old saying "for every complex problem, there is a solution that is simple, neat, and wrong." When it becomes OK to kill anyone that does something you don't like, it also becomes equally possible that others will kill you when you do something they don't care for. But of course you're a good enough troll to know that already.
    [ Parent ]
  • Dupe: First Paragraph of Each (Score:1, Interesting)

    by Anonymous Coward on Sunday July 09 2006, @02:51AM (#15686149)
    even the link is the same

    Yes [slashdot.org], here's some physical proof to save you all some time, but note the slight difference (you will see it because its the only bold text).

    BusinessWeek [businessweek.com]: ( JULY 17, 2006)
    Consumers have strong opinions about Direct Revenue's software. "If I ever meet anyone from your company, I will kill you," a person who identified himself as James Chang said in an e-mail to Direct Revenue last summer. "I will f------ kill you and your families." Such sentiments aren't unusual. "You people are EVIL personified," Kevin Horton wrote around the same time. "I would like the four hours of my life back I have wasted trying to get your stupid uninvited software off my now crippled system."

    MSNBC [msn.com]: ( Updated: 5:51 p.m. CT July 7, 2006 )
    Consumers have strong opinions about Direct Revenue's software. "If I ever meet anyone from your company, I will kill you," a person who identified himself as James Chang said in an e-mail to Direct Revenue last summer. "I will f------ kill you and your families." Such sentiments aren't unusual. "You people are EVIL personified," Kevin Horton wrote around the same time. "I would like the four hours of my life back I have wasted trying to get your stupid uninvited software off my now crippled system."

    The text is exactly the same, only the date is different. Seems like this cover story that was either launched too early or it was an unintentional error. No big news here.
    [ Parent ]
  • by proind (837269) on Sunday July 09 2006, @03:48AM (#15686216)
    just like they do in russia

    http://mosnews.com/news/2005/07/25/spammerdead.sht ml [mosnews.com]
    [ Parent ]
  • What, me worry? (Score:2, Funny)

    by CurtMonash (986884) on Sunday July 09 2006, @03:59AM (#15686228)
    (http://www.monash.com/blogs.html)

    Spy vs. Spy!

    Resolving the references in the title and content of this comment is an exercise left to the reader ...

    [ Parent ]
  • Re:Dupe (Score:2, Funny)

    by Anonymous Coward on Sunday July 09 2006, @04:44AM (#15686275)
    That comment almost made you spit your latte out over your PowerBook at Starbucks, didn't it?
    [ Parent ]
    • 1 reply beneath your current threshold.
  • Re:Oh, What Hath Marketing Wrought? (Score:5, Insightful)

    by the_womble (580291) on Sunday July 09 2006, @05:11AM (#15686304)
    (http://pietersz.co.uk/ | Last Journal: Wednesday May 04 2005, @05:22AM)
    Bill Gates and his company, Microsoft, who invented the market for computer operating systems for people too stupid to run and administer a computer


    They were only copying what Xerox, Apple and others had already done.


    If computers could only be used by people who knew how to administer the, then there would be far fewer computers in use. Most people do not want to learn about computers, they are not interested. Ease of use is necessary.


    It is also perfectly possible to have an OS that is easy to administer and reasonably secure. I have friends who no absolutely nothing about computers who have no problems with Macs. My father finds Ubuntu easier than Windows (although I initially installed it for him and occasionally give him some help).


    It is not ease of use that is the problem. It is bad design, poor implementation and simply not caring about security.

    [ Parent ]
  • Re:Oh, What Hath Marketing Wrought? (Score:4, Interesting)

    by Orange Goblin (945041) on Sunday July 09 2006, @05:22AM (#15686325)
    Jesus, what a load of crap. I run a stable XP box with a combination of a virus scanner and a hardware firewall, and I have no problem with spyware or viruses (you know, the actual plural of virus), and the only time it goes down is when I (rarely) shut it down. The one time I had a problem with spyware that a good dose of Adaware couldn't fix, I just went back to the last system restore point. I don't need to know how Windows "really" works to be able to use it. It's a tool. Do you know how your car really works? Your dishwasher? Your microwave? Could you build one from scratch? You don't need to, as long as you don't crash your car or put your foot through your microwave. Same goes with Windows - don't download stupid crap, and you'll be fine. "Insightful", indeed...
    [ Parent ]
  • I agree.. (Score:1)

    by Ougarou (976289) on Sunday July 09 2006, @06:18AM (#15686408)
    (http://seemymightyads.blogspot.com/)
    As long as they don't have Linux support, I'm not interested!
    [ Parent ]
  • Re:Dupe of Earl? (Score:2)

    by dlb (17444) on Sunday July 09 2006, @09:14AM (#15686771)
    If you have to remind us that it should be funny, then it wasn't funny.

    -1

    [ Parent ]
  • by toddestan (632714) on Sunday July 09 2006, @11:50AM (#15687241)
    who invented the market for computer operating systems for people too stupid to run and administer a computer.

    I thought that was the Mac. Or atleast that's what I have been told here.
    [ Parent ]
  • by rsilvergun (571051) on Sunday July 09 2006, @12:50PM (#15687397)
    they're pulling in enough money that the execs will just get replaced.
    [ Parent ]
  • 10 replies beneath your current threshold.