Analysis
Sextortion, in which scammers threaten to publish intimate images unless the victim pays, has grown quickly, and victims often search online for help in a panic. The FTC's case targets a business that it says advertised to those victims and charged up to $20,000 per package. The complaint's claims have not been decided by the court.
What the FTC alleges
According to the FTC, Digital Forensics sold sextortion victims a "Phase 1" package priced from $1,499 to $20,000 that was supposed to include tracking the blackmailer's location, communicating with the blackmailer, producing an investigative report and reporting the crime to law enforcement [1]. The agency alleges that in numerous instances the company did not perform those services and instead often just blocked the blackmailer on the victim's social media accounts, created fake chat transcripts and made up investigative information [1].
The FTC says the company then pressed victims to buy "Phase 2" monitoring that it also failed to provide, did not honor its own refund policy, and used telemarketing scripts built around victims' fears, such as warning service members of a dishonorable discharge [1]. It also alleges the company suppressed negative reviews and generated thousands of fake positive ones, including reviews written by employees in India and reviews bought from ride-hailing drivers who never used the service [1].
The case
The complaint was filed in the U.S. District Court for the Northern District of Ohio against the company, its owner and 11 affiliated companies, and alleges violations of the FTC Act, the Telemarketing Sales Rule, the agency's rule on reviews and testimonials, and the Gramm-Leach-Bliley Act [1]. The court granted the FTC's request for a temporary halt to the business's activities [1]. The commission voted 2-0 to file the case [1].
The FTC said the company told victims not to block the blackmailers and to keep communicating through the company, which it said runs contrary to FBI advice [1].
What remains uncertain
These are the FTC's allegations; the defendants have not had their case decided, and the temporary order is not a final ruling. The $60 million figure is the agency's estimate of what consumers paid.