Mauldin Man Falls Victim to Costly Computer Scam

A Mauldin man said he is out $300 after he fell prey to a rapidly spreading computer scam that extorts money from hapless victims.

James A. Newton, 56, told Mauldin Police that when he went to boot up his desktop computer last week, he encountered a screen purportedly from the U.S. Department of Justice.

The screen indicated that his computer had been compromised because of pornography websites and that he must purchase a MoneyPak card and pay $300 to resolve the issue and avoid any trouble, according to an incident report.

Newton said he purchased the prepaid card, which allows users to make online payments directly or through services such as PayPal, and input the card's code and made the required payment. 

"He then became suspicious…and contacted MoneyPak to see where his money had went," the report said. "MoneyPak advised him to make a police report and they could continue into the incident further."

A growing concern

The MoneyPak scam that befell the victim — referred to as the U.S. Department of Justice virus and the FBI virus — is one that is becoming more common, according to the FBI. Cyber thieves are extorting money from hapless victims by infecting their computers with "ransomware."

“We’re getting inundated with complaints,” said Donna Gregory of the Internet Crime Complaint Center (IC3), referring to the virus known as Reveton ransomware. (IC3 is a partnership between the FBI and the National White Collar Crime Center).

According to the FBI:

"Reveton is described as drive-by malware because unlike many viruses—which activate when users open a file or attachment—this one can install itself when users simply click on a compromised website. Once infected, the victim’s computer immediately locks, and the monitor displays a screen stating there has been a violation of federal law.

The bogus message goes on to say that the user’s Internet address was identified by the FBI or the Department of Justice’s Computer Crime and Intellectual Property Section as having been associated with child pornography sites or other illegal online activity. To unlock their machines, users are required to pay a fine using a prepaid money card service.

“Some people have actually paid the so-called fine,” said the IC3’s Gregory, who oversees a team of cyber crime subject matter experts.

The Reveton virus, used by hackers in conjunction with Citadel malware — a software delivery platform that can disseminate various kinds of computer viruses — first came to the attention of the FBI in 2011. The IC3 issued a warning on its website in May 2012. Since that time, the virus has become more widespread in the United States and internationally. Some variants of Reveton can even turn on computer webcams and display the victim’s picture on the frozen screen."

The IC3 suggests the following if you become a victim of the Reveton virus:

• Do not pay any money or provide any personal information.
• Contact a computer professional to remove Reveton and Citadel from your computer.
• Be aware that even if you are able to unfreeze your computer on your own, the malware may still operate in the background. Certain types of malware have been known to capture personal information such as user names, passwords, and credit card numbers through embedded keystroke logging programs.
• File a complaint and look for updates about the Reveton virus on the IC3 website.

For more on the virus and how to remove it, click here.

MoneyPak urges its customers to always verify that a new recipient of a MoneyPak payment has been verified and approved by the company. You can access a complete listing HERE. 

Have you encountered this virus? Tell us about it in the comments below.