This article was produced in collaboration with Court Watch, an independent outlet that unearths overlooked court records.
The Federal Trade Commission (FTC) filed a legal complaint against two companies based in Cyprus on Wednesday that it claims are behind a wave of malicious pop-ups that trick people into downloading a fake piece of antivirus software that generated tens of millions of dollars for its operators, according to court records. The scam also involved misrepresenting results on malware repository VirusTotal as infections on the user’s own computer. (Update: after the publication of this piece the FTC announced that Restoro and Reimage will pay $26 million to settle the FTC's charges.)
The move is the latest from the FTC in a series of actions in the privacy and cybersecurity space. In January, the FTC banned a data broker called X-Mode from selling sensitive location data after I revealed it was harvesting location data from Muslim prayer and dating apps. In this case, the FTC says it went “undercover” against the two related companies, called Restoro and Reimage, to buy the deceiving software and have phone calls with company representatives.