A major distribution network for rogue anti-virus products has been shut down following reports by Security Fix about massive profits that the network's affiliates were making for disseminating the worthless software.

On Monday, Security Fix profiled TrafficConverter2.biz, a program that pays affiliates handsome commissions for spreading "scareware" products like Antivirus2009 and Antivirus360. Scareware tries to frighten consumers into purchasing fake security software by pestering them with misleading and incessant warnings about threats resident on their systems.

According to a message posted at TrafficConverter2.biz and its sister sites, the program's credit card payment processor pulled the plug on them shortly after our story ran. TrafficConverter2.biz is currently unreachable, but a message posted to the home page earlier this morning reads:

    On March 18th, in the evening, with no warnings, the German Merchant Processing was cut off. Merchant was at the bank personally (without intermediaries), proved and with the arrangements on the highest level. Up until now the bank was not replying to our inquiries, but finally we received answers from them your Merchant was blocked and the account frozen until the determination of the facts. According to unofficial channels, we have been able to ascertain the following:

    "I am sorry to inform you that both VISA and MC have done a surprise on site visit at the [...] offices in Frankfurt. They are actually there as we speak.

    They have instructed WC to freeze your account until further notice and both of these companies have different reasons for doing so:

    VISA; they want to investigate where all the volume comes from.
    MC; High [chargebacks] the past few days."

    This is absolutely unprecedented case when two of the largest payment system called the requirement to block the Merchant. We also have a reason to believe that the situation was caused by the recent publication about us and our products in Washington Post:

    There are, as you can see, some very serious accusations. Including the relation to Conficker, which we actually are not implicated with (and can prove it if necessary).

    As a result of this situation:
    - No money to pay;
    - No capacity to process products (not because we're not working, but because this volume is not endure any processor)
    - There is a chance to get ourselves under prosecution and let down Webmasters.
    So, the decision was made to default and shut down the Traffic Converter. In case we resolve this issue and manage to refund the money from the bank, we will pay you off all debts as quickly as possible.
    If we manage to get the stable traffic conversions we have demonstrated during the year and a half, we will contact you on individual basis.
    Thanks to everyone for succesful [sic] business cooperation.

{Washingtonpost}