MS Gets $7 Million From Spammer 373
pin_gween writes "Reuters UK reports that Microsoft has settled its spam suit against Scott Richter for $7 million. From the article: 'Microsoft and New York Attorney General Eliot Spitzer had sued Richter in late 2003, asserting that he had sent, or helped other spammers send, billions of e-mail messages to consumers touting everything from herbal products to loan consolidation schemes.'"
Spam Translation - Read the little font (Score:5, Insightful)
Richter knows nobody in their right mind would agree to receiving the loads of $hit he shovels. What he effectively saying is, "I'm going to hide in teeny-tiny font, at the bottom of some website, when you click "Accept" for your order (whatever that may be) you're also agreeing to receive my spam."
In his case he's a product of what he solicits - Garbage.
Re:Spam Translation - Read the little font (Score:5, Insightful)
and yet, miraculously, there are people out there who buy that stuff... if there weren't there wouldn't be any spam.
if we're really going to stop junk email, these are the people we should be working on educating. think what damage could be done to the spammers' pocket book if every new copy of outlook showed a little message every time a suspected spam was opened that said "warning: unsolicited commercial email may be fraudulant".
if ms is serious about shutting down spam, they should spend less on lawyers and more on educating their end users.
Re:Spam Translation - Read the little font (Score:4, Insightful)
Richter has sent "billions" of spams. Say, that's 2,000,000,000 to be conservative. If he's merely been fined $7,000,000 that works out to less than 1/2 a cent per spam sent.
If he can make one $50 sale per 100 emails, then he's still in the green. Just how teachable do you think the dumbest 1% of people are? (And actually... judgements like this will probably kill spam, because it probably takes more like 1,000 emails to make that one sale given filtering and noise ratios...)
Re:Spam Translation - Read the little font (Score:5, Insightful)
Maybe, although that is far from proven - all we have is the word of the spammers themselves, and you must remember rule #1 (spammers lie.)
if there weren't there wouldn't be any spam.
Bullshit. If this were true, then there would never have been spam to begin with, because the *very first* spammers got exactly zero orders. Nobody bought anything, and yet spammers still spammed - why? because they could.
It doesn't matter if nobody buys anything - as long as sociopaths believe someone *might* buy their crap, they will continue to do it, and new ones will pop up as the old ones run out of money.
What they see is lots of spam from other companies, and (just like others who lack critical thinking skills) believe that "someone must be buying", and start spamming.
if we're really going to stop junk email, these are the people we should be working on educating.
How are we going to do that when *YOU* buy into the self-perpetuating "someone must be buying" myth? Since *YOU* believe it, spammers will believe it, and they will keep spamming.
Re:Spam Translation - Read the little font (Score:4, Informative)
There is a study floating around (can't recall where) that found that spammers aren't making money off the products they "offer". They are making their money by selling email addresses to other spammers. Email address harvesting is where the true spammer makes his bread...
Still, how this translates into Microsoft getting the loot is beyond me.
B.
Re:Spam Translation - Read the little font (Score:3, Interesting)
I asked why on earth would you even dare read it. You are contributing to the problem by making it profitable.
His unfounded response was that he gets good deals sometimes. (Which is total BS upon inspection... any research on the product shows it can be had for the same or lesser cost)
Spam buyers are the same people who get sucked into paypal, nigerian investment and every other scam on the market.
Having said that, I've seen
Re:Spam Translation - Read the little font (Score:4, Insightful)
Yeah, you're right that it has nothing to do with sales, but you're wrong that's it just because "they can." They do it because "they make money." Spam pays off even if nobody buys anything so long as they click-through to a web site. This model is becoming outdated rapidly, and is being replaced by phishing and fraud.
Bullshit. If this were true, then there would never have been spam to begin with, because the *very first* spammers got exactly zero orders.
They weren't selling anything at first. They were just advertising. Advertising is a subconscious phenomenon that works on most people, regardless of how hard they consciously work to resist its impact. Even seeing commercials that you hate because of their simplistic stupidity can often generate sales. Most people don't remember the company that a given commercial is for, but they did hear the name and subconsciously associate it with a memorable event. People are constantly walking out of grocery stores and shopping malls, badmouthing the "stupid" commercials for products that they just purchased. Advertising is attention, the sales don't have to be direct to be counted.
Nobody bought anything, and yet spammers still spammed - why? because they could.
They kept doing it because they were making money, they didn't give a shit if anybody bought anything or not, as long as they made money. Spammers are usually intermediaries for somebody else's business. The spammer doesn't care if that business makes money as long as they pay the spammer to distribute advertising.
It doesn't matter if nobody buys anything - as long as sociopaths believe someone *might* buy their crap, they will continue to do it, and new ones will pop up as the old ones run out of money.
Again, I don't believe this is entirely accurate. It doesn't matter if anybody buys anything, but spammers spam because they make money doing it. They are paid by somebody else to spam on their behalf, they generate some traffic, they scrape email addresses and resell them to other spammers, they phish for information for identity theft or resell to identity thieves, they try to defraud the ignorant.
What they see is lots of spam from other companies, and (just like others who lack critical thinking skills) believe that "someone must be buying", and start spamming.>
No, they see that spammers are making money and getting wealthy with little risk so they do it.
How are we going to do that when *YOU* buy into the self-perpetuating "someone must be buying" myth? Since *YOU* believe it, spammers will believe it, and they will keep spamming.
Wrong again. Spammers will keep spamming as long as they make money off of it. When it's not profitable, it'll end. That profit is not necessarily tied to sales. Big telecom companies are often complicit in spam dissemination, there's too much money to be made off of leasing transatlantic bandwidth to strategic clients.
Spam has to stop paying before it'll end. The question is where do you deal it, on the demand-side, or the supply-side? The demand is not from end users who want spam, it's from businesses who want to send it.
Spam Education (Score:3, Informative)
Re:Spam Translation - Read the little font (Score:3, Insightful)
No, if we really wanted to stop spam then we need to do two things:
1. Force specific performance on the part of the end beneficiary of the spam. When I get a spam offering a guaranteed mortg4ge of $350,000 at %3.5 and $600/month regardless of credit then any mortgage broker who responds to my click here action should be absolutely forced to give me a mortgage on those terms. Let him take it up with the spamm
I wish they would stop settling (Score:4, Insightful)
and send some people to jail AND take their money
simply taking their money isn't good enough as they can afford it so it becomes a cost of doing business
untill they slam them in jail nothing will change
Re:I wish they would stop settling (Score:3, Interesting)
Re:I wish they would stop settling (Score:4, Insightful)
Re: (Score:3, Insightful)
Re:I wish they would stop settling (Score:2)
I'm certainly not saying they should get as much jail time a
Comment removed (Score:4, Insightful)
Re:Why shouldn't they be locked up? (Score:3, Insightful)
Re: (Score:3, Insightful)
Re:Why shouldn't they be locked up? (Score:4, Insightful)
Spam is a fact of life. It won't go away, it won't decrease. This is one of those wonderful "won't somebody please think of the children!" that people scorn so much on slashdot.
If your ISP has to buy more mail servers, the maybe they didn't do their maths correctly in the first place. Maybe they're not enforcing local policies clearly enough. Maybe they should have just thought of it all back when they designed their setup. It's easy to blame spammers, but reality shows that people just didn't think.
Stolen bandwidth? Stolen storage? Where was it taken? To say that it's stolen implies that somebody has been deprived of something. Sure, they may have less free space, but the capacity is still there - so nothing has been stolen. If you're running out of bandwidth/storage, then maybe you should have planned your business better and taken into account these things instead of counting on a bare minimum to survive.
Re:I wish they would stop settling (Score:5, Funny)
Re:I wish they would stop settling (Score:3, Interesting)
Re:I wish they would stop settling (Score:2)
Make the cost of doing business the entire business. Sue the company out of existance and, if their company is set up in such a way that allows it, sue the spammer into bancruptcy.
Comment removed (Score:4, Interesting)
Comment removed (Score:5, Insightful)
Re:I wish they would stop settling (Score:3, Insightful)
A central part of the suit was the fact that the spam was actually fraudulant. False claims, phony unsubscribe mechanisms, etc. You do that sort of crap a few billion times, that's exhibiting enough contempt for civil society that jail seems perfectly reasonable.
Re:I wish they would stop settling (Score:2)
Hrm (Score:3, Funny)
Re:Hrm (Score:5, Funny)
2) spammers create botnets from your OS
3) sue spammers
4) profit!!!
Re:Hrm (Score:2)
Re:Hrm (Score:2)
Running Windows?
Re:Hrm (Score:2)
Re:Hrm (Score:2)
Let's See... $7million divvied by... (Score:2)
Waiting...
Waiting...
Ah, Dang.
Missing information (Score:2)
-paul
The wrong example (Score:5, Interesting)
From a legal standpoint, this is a nice victory for Microsoft. I hope they achieve their deterrent effect by making the financial incentives to spam more dubious. I'm afraid, though, that they will only succeed in driving hardcore spammers deeper underground, with Richter serving as an example of the dangers of treating your spam operation like a legitimate business.
Re:The wrong example (Score:5, Interesting)
No, they don't.
Richter has done it all. He's done every dirty trick in the business, including spamming for a fake 9/11 charity and pocketing the money for himself.
Spamming using open proxies and zombies: check
Bulletproof hosting in China: check
About the only thing he has NOT done is hijacking unused netblocks to get anonymous Internet routing.
He may NOW be all "legit" and shit, but the money running his current spam empire has all come from various illegal activities.
The only thing different with him and your garden variety chickenboner is that he is somewhat successful in scamming businesses to buy spamming services from him. He gets repeat business, most spammers don't.
Mod Parent Up! (Score:2)
Re:The wrong example (Score:2)
Laws and law enforcement are much different in the US vs China and other well known spam countries. On my systemwide spam filter, I about 50% of the spam that gets caught gets hit with a spam rule that checks for urls that are based on servers in China and Korea. I believe its either the best or one of the best rules I ge
Total frickin BS if you ask me (Score:3, Insightful)
1. This was not a legal victory at all, it was a settlement. From TFA:
Microsoft knows that game very well. Settling out of court really doesn't do anything legally.
And how financially painful was it fo
Re:Total frickin BS if you ask me (Score:4, Interesting)
Why Microsoft? (Score:3, Insightful)
Re:Why Microsoft? (Score:5, Insightful)
Because they sued him and you didn't.
Re:Why Microsoft? (Score:2)
I always thought the government was 'for the people'
My bad
Re:Why Microsoft? (Score:2)
2) The story here is based on Microsoft's press release, describing their end of the settlement. Elliot Spitzer is busy right now, lessee, fining a radio station for a promotion in which participants, usually young women, took turns violently slapping each other [state.ny.us].
Re:Why Microsoft? (Score:2)
it use to be:
by the people, for the people.
change that to:
Buy the people, for itself.
Because you're a different victim (Score:5, Insightful)
If you run your own mail server, you may be entitled to sue the guy yourself. Good luck on that.
The CAN-SPAM law specfically restricts these sorts of lawsuits to ISPs, but I'm not certain of the details. Either way it's probably best to let a large corporation conduct this sort of lawsuit, because it'll cost you a fortune to sue the guy for the relatively small sums you'll get. It's unfortunately to have your right to sue removed, but in this case it's probably not worth your effort anyway.
Re:Because you're a different victim (Score:2)
Besides, with jokers like this, who else but Microsoft has the technical background and resources to fry spammers? Hate Microsoft all you want, but they can fight for us too.
Confused (Score:5, Interesting)
Re:Confused (Score:3, Insightful)
Pays (Score:2)
He who pays the lawyers, gets the cash. Problem is, most of us can not afford the time or money to hire an army of lawyers. M$ can.
Re:Confused (Score:3, Informative)
Microsoft sued Richter for the spam that Microsoft received and had to deal with -- ie: through MSN, Hotmail, etc. If you, running your own ISP, also received spam from Richter then you are free to sue as well. Setup and issue a call for donating to your legal prosecution fund and let us know how it goes.
Sad thing is (Score:3, Insightful)
What to do with the money... (Score:2)
Microsoft will reinvest all of the money, after legal expenses, including $5 million that will go to increase Internet enforcement efforts and expand technical and investigative support to help law enforcers to address computer-related crimes.
I presume this is marketingspeak for "prosecuting more spammers to get more money just like this."
(For the humour-impaired: I am not anti-MS, this is a joke.)
Re:What to do with the money... (Score:2)
Interesting... Sounds a lot like SCO. The only difference is that MS actually won in court first.
Notable exception! (Score:5, Informative)
From TFA:
Nevertheless, Richter said that he and his company had changed their e-mailing practices and pledged not to send spam to anyone who has not asked to be sent commercial e-mail.
So supposedly, from now on he will only be mailing to users who have "opted in". Hmm.. sounds familiar.
Circular bullshit.... (Score:4, Insightful)
A lot of the time these people buy lists from other SPAMers who "tell" tehm that the list they are buying is "opt-in". When the hammer comes down they tell the authorities "The guy I bought it from said they where all opt-in, how was I to know"? It's all circular bullshit.
Rule #1 (Score:2, Insightful)
Think of spammers as Harcourt Fenton Mudd.
Re:Notable exception! (Score:3, Funny)
Well, in that case, it seems the most sensible course of action is:
Re:Notable exception! (Score:2)
To consumers.. (Score:2, Interesting)
At first I was wondering why Microsoft gets the money, and whether they would keep it. What's the basis for this suit? It's not a class action, is it? Shouldn't the money be going to those consumers that were affected by it?
Granted the article mentions
Smith said that Microsoft will reinvest all of the money, after legal expenses, including $5 million that will go to increase Internet enforcement eff
quote: separate spammers from their money (Score:3, Funny)
He then added, "We do this by certifying all zombie machines through the Microsoft Genuine Advantage program. Only licensed copies of Windows will be used to send spam."
Re:quote: separate spammers from their money (Score:2)
they're not getting $7 million (Score:5, Insightful)
Microsoft's odds of actually seeing the money are about as likely as a spammer "unsubscribing" you.
Is email a technology that can be saved? (Score:5, Interesting)
How does Google filter spam so well or is it just that the service is new?
I still like the idea of publishing spammers home addresses and then sending credit card applications, catalogs and all the rest to their homes. If we could get each of them to receive a couple bushels of junk mail every day at their homes, maybe that would help. I'm against the idea of handing pornography to their children as they play on the playground, but it does seem poetically just.
What can be done to save email or as Google already done it?
Spammers money used for implememnting MS DRM... (Score:2)
Ah great! Spammers money being diverted to enforcing M$ proprietary email controls and DRM!
I guess everyone is getting the worst of ALL worlds.
This article was better (Score:2)
A critical piece this article left out was that Richters operations would be monitored for three years. While only three years in length the oversight will (hopefully) insure he doesn't try some other route to clog the net with crap.
Where is my cut? Why no conviction? (Score:2)
Do you see my point here? Microsoft has effectively found a(nother) way to make money off of spam - to sue spammers... although I'm very happy for anyone to make sending spam look like a poor business to get into, it's somehow hard for me to see this as anything other than Microsoft getting a cut of the take. Where's my share, I get spam al
Re:Where is my cut? Why no conviction? (Score:2)
Microsoft went after him for civil damages because they had to deal with his bullshit by way of Hotmail.com. If you want a some blood from Snotty Scotty, sue him for what he did to your mail server.
you can't trust this guy (Score:2, Interesting)
Re:you can't trust this guy (Score:2)
Oh...uh...
URGENT ATTENTION REQUIRED (Score:5, Funny)
The more things change... (Score:2)
10,000 Quatloos says that Richter pays for his judgement with the proceeds from his new company - YouOptedInReallyBigger.info - that sends spam only to people who opted in, because every ASCII string with at least one "@" character, from a@a, to my email address, to the Message-IDs of every USENET post made si
At least they're consistent... (Score:2)
Funny, I think that's their goal for me, too.
Wait, am I supposed to be bashing Microsoft, or the spammers? I hate these confusing topics...
Re:At least they're consistent... (Score:2)
Simple. "No honor among thieves".
Or in the microsoft-friendly version:
Bash both of them. Spammers for doing what they do, and Microsoft for not doing enough to stop them.
What does MS do with the money (Score:2)
Wake me when the check clears (Score:2)
Re:Wake me when the check clears (Score:3, Informative)
RTFA.
Additionally, as part of the settlement, Richter agreed to drop bankruptcy proceedings filed in March in the U.S. bankruptcy court in Denver, according to a joint statement by Microsoft and Richter. The settlement is conditioned on dismissal of the bankruptcy cases.
Re:Wake me when the check clears (Score:3, Interesting)
They specialize in moving around and hiding their resources so that they can't be easily tracked. If Richter can do it with e-mail, he can do it with any money he has. Whether he declares bankruptcy or not, I don't expect Microsoft to see $7M. I don't think Richter ever had $7M in the first place. Spammers don't make that kind of money. If they did, there would be a lot more of them than they are, and the stuff they would be promoting would be more substantive tha
They should... (Score:4, Funny)
Last tally i'd be getting >2200.00 / day USD. I'd be happy to even click "Mark folder read" for that price.
Ob (Score:2, Funny)
Oh, just throw it on the pile, I suppose.
Who gets the money (Score:2)
In this case, it looks like this is exactly what happened. As much as I personally dislike Microsoft, the system is working as planned on this one. The fact that they are reinvesting the proceeds into more enforcement efforts is encouraging.
As for the rest of us.... whoever run
he got off easy... (Score:2)
http://mosnews.com/news/2005/07/25/spammerdead.sh
I can see it now (Score:5, Funny)
Please contact me for your share of 7 million dollars!
Rich paying richer... (Score:2)
Turn about is fair play (Score:2)
Would that not be just as valid as most spammers
Jon Stewarts "The Daily Show"... (Score:5, Interesting)
Re:Jon Stewarts "The Daily Show"... (Score:2, Interesting)
The problem (Score:5, Funny)
Yeah. Turns out, this is how this guy is going to pay his bill.
The Good News: MS Campus is about to get all the verbal Viagra and "male enhancement" products they'd ever want!
The Bad News: MS Campus is going to have bigger dicks then ever before....
[/sarcasm]
They do it much better... (Score:2)
Excellent interview with Scott Richter (Score:5, Funny)
Quick math (Score:3, Insightful)
Re:Quick math (Score:3, Insightful)
Just because it takes 5 seconds to delete spam, you're assuming it's done on work time and if it is, then it's likely there's more productivity lost the employee even checking their mail at work. Not to mention that you can't measure productivity strictly as a function of time.
Not to ment
RAWR FIGHT THE MACHINE (Score:2, Insightful)
As for your "argument", it's shit. Nowhere did I say the spammer caused 4 million in damages. YOU extrapolated this from my hypothesis which is a framework under which you can (attempt to)EVALUATE or ESTIMATE the ACTUAL damages caused.
Next time READ before you flame.
Don't be so quick with your math (Score:2)
It's $40,000,000, not four million.
Re:Quick math (Score:5, Funny)
The real kicker (Score:2)
Re:7 million (Score:2)
Because THEY sued (Score:2)
What are you complaining about, again?
Because they were the ISP. (Score:2)
Individuals with states that have the laws that prohibit deceptive spam can sue spammers that use deceptive spam (check your state's laws).
If you want money, you can sue the spammers yourself if the law permits.
Re:Color me confused. (Score:2)
But when you try to make them act responsible w.r.t. spamming via their MSN members, they suddenly claim MSN is an independent company they are not responsible for...
(I cannot believe that Microsoft operates a company, MSN, that provides nearly bulletproof domain name registration an mail services for 419 scammers, and nobody at Microsoft or MSN wants to handle abuse for it. They have their abusedesk outsourced to India and th
Haven't you heard? (Score:2)