Services
Support
Customer Service
Corporate
Links
Email
Spam wars hit home on quiet Ocala street OCALA - John McLeod might call himself a serial entrepreneur. Microsoft Corp. calls him a spammer. Last week, as part of a joint legal effort against unsolicited junk e-mail by the four largest Internet providers, giant Microsoft sued McLeod's JDO Media Inc. The company operates out of McLeod's Ocala home in the tree-lined subdivision of Shady Wood, about two hours north of the Tampa Bay area. According to Microsoft, JDO Media and unnamed John Does are among the nation's "most notorious large-scale spammers," responsible for millions of illegal e-mail messages sent in violation of the new federal Can-Spam law, which went into effect in January. McLeod, a lanky 59-year-old, is keeping his mouth shut. Answering the door at his neatly kept ranch home Friday afternoon dressed in jeans and an Old Navy T-shirt, McLeod said, "I can't say anything. It wouldn't do me any good." With a silver cell phone jammed to one ear, the white-haired and mustachioed McLeod was good-natured but firm in declining interviews. He identified his lawyer as Andy Jaffee of Michigan "or Ohio," but no lawyer by that name was found in either state. Asked whether JDO Media operates out of his $70,000 home, with its Welcome wreath on the door and Santa collection in the front hall, McLeod said, "Actually we do." Despite the homey surroundings, Microsoft contends that JDO Media, run by McLeod and 23-year-old David Penn of Ocala, deluges e-mail users with a tsunami of spam with misleading subject lines. Among them: "This is your lucky day," "Elite, Professional Invitation," and "Warning!! These three minutes could change your life." The suit says the real purpose of these messages is to promote JDO Media's multilevel marketing program, which in turn tells members how to generate more leads for the program and for other products through spam. The lawsuit alleges that many of JDO Media's spam messages are sent through computers hijacked via the Internet from unsuspecting victims, disguising the true sender. Among the Internet domains JDO Media used to advertise its products and services, the complaint says, are clickforsuccess.org, kash4u.net and my3minutemovie.org, none of which are now in operation. Internet experts say they're not surprised by Microsoft's allegations that a massive spam operation could be housed in a nondescript neighborhood in Ocala. "With a fairly sizeable PC and a good fast connection to the Internet, a mom-and-pop operation can send out millions of e-mails a day," said Stu Sjouwerman, founder and chief operating officer of Sunbelt Software in Clearwater, which produces antispam software. "And getting e-mail addresses is no problem because spammers simply swap databases of 5-million to 20-million names at a time. There's a wealth of addresses." JDO Media is not McLeod's first venture in multilevel marketing, where salespeople often make more money recruiting other salespeople than from actual product sales. After working in sales and management with Allstate Insurance in Ocala until 1996, McLeod started Satellite International Telecom the following year with partner Sidney Dosh. "It was a multilevel marketing program that sold prepaid telephone cards," said Dosh, who was vice president while McLeod was president. "We would hold rallies in different locations and explain the potential for earnings. People would buy our sales kits and whoever sold a kit would get a commission." Dosh said the business was fairly successful initially, then went down the tubes as long-distance prices plummeted. The company was dissolved in late 1999, but Dosh has no hard feelings toward his former partner. "John has real sales ability and is a very people-oriented person," he said. "We probably could have succeeded if the process of long distance hadn't become so competitive." From 1998 to 2000, McLeod started three more companies in Ocala: International Wealth Builders, F.M.M.S. and Galaxy Depot. After the editor of the WorldWide Scam Network raised questions on his Web site in late 2001 about International Wealth Connection's operations, McLeod replied, defending his companies. "One of our methods of product distribution is multilevel marketing," McLeod wrote in an e-mail to the WorldWide Scam Web site. "There are no scam artist (sic) at Galaxy Depot Inc. Just a dedicated management team, along with many core industry leaders, who believe in us and our vision." Stephen D. Foster, who was a partner with McLeod in Galaxy Depot and F.M.M.S., said Galaxy Depot was, in fact, a dud. "We wanted to get salespeople who would sell Web sites to small companies door-to-door," said Foster. "If we could have gotten 500 customers, we would have had a very nice business. In fact, we probably only sold a couple." Since Galaxy Depot went out of business, McLeod has started three more companies, including JDO Media in January 2003. Tracking down spam creators is no easy task. The spammers often use Internet providers outside the United States. That makes it tough to filter out bogus Web addresses, which can change on a weekly basis, said Eric Feinstein, president of Internet Junction, an ISP provider in Tampa. "We have all these filters for all these locations and, like clockwork, every Sunday night, which is Monday morning in Asia, we need to put new addresses in the filter." Feinstein, whose ISP has 20,000 customers, figures he has three full-time staffers searching for spammers who constantly change identity. "We probably reject 70 percent of all e-mail that comes in here (as spam)," he said. "But it's a constant struggle." Feinstein and Sjouwerman, the Clearwater software executive, applaud the big Internet providers' lawsuits against major spam operations, but say that's just one part of the puzzle. "This is just putting a head on a spike and hoping the rest get scared," Sjouwerman said. "Spam is a technological problem, and legislation just by itself will not cut it, especially when half of all spam comes from outside the U.S. It's like a game of Whack-a-Mole. They just stick their heads up somewhere else." - Times researcher Kitty Bennett and Times staff writer Robert Trigaux contributed to this report. Kris Hundley can be reached at hundley@sptimes.com or 727 892-2996. By KRIS HUNDLEY, Times Staff Writer Source: � St. Pete Times Published March 16, 2004. Full article.
Can anybody stop all this junk e-mail? WASHINGTON - Spam is out of control and Congress is vowing to stop it. Good luck. When you consider that even a relatively small Tampa Internet provider is bombarded with up to 2-million junk e-mails a day, taming spam seems virtually hopeless. But last week the Senate Commerce Committee approved a bill known as the CAN-SPAM Act that is supposed to reduce the flood of junk e-mail. It would require spammers to use legitimate return addresses, prohibit them from using aggressive techniques to "harvest" e-mail addresses and allow consumers to choose not to receive further messages. "Something has got to be done," said Sen. John McCain, R-Ariz. "This is a good start." Yet pessimism reigns. Experts on e-mail fear that spammers - a word now in American dictionaries - will have little trouble finding clever ways to evade any new federal rules. And they fear Congress' good intentions will backfire. They say that if the government creates new rules for "legal spam," legitimate marketers will find it attractive to join the spamming. Said John Mozena, vice president of the Coalition Against Unsolicited Commercial Email: "You've effectively given the federal stamp of approval to spam." From: Thomas G. Stephenson Subject: Worried? Don't let se'xual dysfunction stop you from enjoying life! Introducing the HOTTEST selling product of the year - Low Cost, All Natural Viagra Alternative. Internet service providers are constantly creating new ways to block the unwanted mail, but the spammers inevitably find ways to break through. Eric Feinstein, president of Internet Junction, a Tampa provider with 20,000 subscribers, says the problem is "really horrific." He says the battle against spammers is never ending. "There is always a new twist." His antispam filters block as many as 2-million spam messages each day, roughly 100 for every subscriber. But spammers still find ways to get through. The spammers harvest e-mail addresses from Web sites or any location that might have a list. That's why people who have never visited a pornographic Web site or ordered sexual products still get X-rated solicitations. There is even spam to help spammers. One offers "400 MILLION E-mail Addresses in a 3-volume, 5-disk set. Complete package only $139!!" Another way to find addresses: an aggressive technique known as a "dictionary attack," where spammers essentially pry open an e-mail server and then bombard it with random names, figuring some will get through. When they send messages, spammers usually disguise their identities by using fake return addresses or relaying their e-mail through someone else's network. They use misleading subject headings to entice people to read the message. The subject will say "About our lunch next week," but the message will be about mortgage rates or "a medical breakthrough for men." Some messages offer recipients a chance to reply so their name will be removed from future mailings. But the Federal Trade Commission has discovered those replies usually don't work. Internet service providers and companies that offer e-mail to employees use an arsenal of filters to block the unwanted mail. Internet Junction blocks anything coming from Asian computer networks frequently used by U.S. spammers. The Tampa company can also block messages when its computers determine a spammer has sent identical messages. Consumers can do their own filtering. Many e-mail programs allow people to block messages with certain words in the subject line or in the message itself. For example, they can specify they don't want messages that mention "mortgage rates" or "sex." But spammers have found ways around those filters, such as putting the apostrophe in se'x or using dollar signs instead of an S. To evade filters that detect identical messages, spammers include random names and numbers in each message to make them unique. Who are the spammers? They typically work alone or with one or two others, and are described as low-rent hitmen who get hired by shady companies. "We joke that the spammers are the same people who were selling snake oil out of covered wagons in the Old West," Mozena said. "It's the people who are always living the gray edge of legality." Feinstein, the head of Internet Junction, says a growing number of legitimate companies are using unsolicited e-mail because it is an inexpensive way to advertise. The spammers seem to be winning the game. Brightmail, a company that makes antispam software, says the unsolicited e-mails have increased more than 900 percent in the past two years. In April, the company estimates, there were 7-million spam "attacks." Each attack can contain millions of messages. The public outcry about spam has grown. Unlike paper mail that can be easily ignored or discarded, the unwanted electronic messages clog in-boxes and, depending on your e-mail program, require considerable effort to delete. "This is really gumming up the Internet," said Rep. Jim Davis, D-Tampa. Congress has been discussing antispam bills for several years, but the issue hasn't had enough momentum to get through the House or the Senate. Now, it appears likely to pass. From: Nikki Noak Subject: Millionaire MOM in the making! That extra Money you were looking for just found you...You deserve a new and lucrative lifestyle without a boss! About 30 states have antispam laws, but they have not been effective. Officials say that's because spammers are difficult to find, the messages can originate in other states or countries, and because the states have not put much effort into enforcement. Microsoft and other Internet providers are becoming more aggressive in pursuing spammers, usually with lawsuits that allege deceptive marketing. But it's too early to tell if it's working. Neither effort has deterred Nikki Noak from her search for Millionaire Moms. The proposed CAN-SPAM Act (short for Controlling the Assault of Non-Solicited Pornography and Marketing), would require spammers to use a valid return e-mail address. They also would have to provide a way for people to be removed from e-mail lists. The law would put restrictions on the techniques spammers use to hide their identity. The bill also prohibits those "dictionary attacks." It also would require that spammers indicate in the subject heading that the message is an ad, using a label like "ADV." Internet companies and direct marketers have opposed some of the antispam proposals because of fears they might hinder e-mail efforts by legitimate companies. But they endorsed the CAN-SPAM bill last week as a practical first step. Some proposals are tougher. A bill written by Sen. Charles Schumer, D-N.Y., would create a "No-Spam Registry" similar to the new federal database of people who do not want calls from telemarketers. From: ivoryprf Subject: CESSPOOL AIDE Keep Your Septic Working Efficiently! Get A FREE Trial of SPC Septic Cleaner Simply the most effective septic maintenance product available! Why not simply ban spam? Many businesses balked at that approach because they say e-mail is a valuable way to advertise. They've convinced lawmakers that a ban could damage legitimate marketing efforts. Sen. Bill Nelson, D-Fla., said some consumers like to receive e-mail ads and coupons. "There is a legitimate question of not hindering commerce," he said. But the bills now before Congress may not do enough. David Sorkin, a professor and spam expert at the John Marshall Law School in Chicago, says spammers are so elusive that new laws will only make a dent in the problem. "This may be one of the areas where we have to rely more on technology than the law," he said. Orson Swindle, a federal trade commissioner, told a Senate committee last month that tough laws are helpful, but "the biggest problem we have is finding those who are sending the spam." Swindle is skeptical about a do-not-spam registry. He said it would be difficult for the government to maintain such a large database. He also doubts spammers would live by it anyway. Several consumer groups want a more restrictive law that requires consumers to indicate that they are willing to receive spam. Otherwise, spammers could not send it. Nelson wants the government to use racketeering laws to catch spammers so prosecutors would have broader powers to seize assets. "We need to give the prosecutors the ability to go after the criminal enterprise," he said. But Sorkin is conflicted. The more the government tries to help, the worse the problem might get: "As we remove the stigma from it, a lot more legitimate businesses are going to start doing it." By BILL ADAIR, Times Staff Writer Source: � St. Pete Times published June 23, 2003 Full article.
Verizon Ups Ante In High-Speed Scramble
Taking on the broadband Goliaths Internet Junction will provide cable modem service in the Tampa Bay area. TAMPA -- Internet Junction, a small Internet service provider that built its business by offering online access for $9.95 per month, is getting a coveted chance to provide cable modem service in the Tampa Bay area. Internet Junction now has 20,000 subscribers, most of them using slower dial-up phone connections. Now it will compete with better-known giants Road Runner, America Online and Earthlink as an option offered to Time Warner cable customers in the bay area and the Orlando area. The company's executives say they aren't fazed by the heavyweight competition. "We're ecstatic," said Eric Feinstein, president and majority owner of Internet Junction (www.ij.net). "For Florida consumers, it really opens up a door for alternatives." The Federal Trade Commission ordered Time Warner to open its cable lines to competitors as part of its merger with AOL, and the agency has now approved the company's plan to do so. AOL Time Warner owns Road Runner, which until recently was the only option offered its cable customers, as well as America Online. The FTC also approved a Time Warner deal with Inter.net of Reston, Va., and it is reviewing a proposal that would give Juno Online Services access to the cable lines. Though only about 5 percent of U.S. homes have high-speed access, experts expect that share to grow in coming years as people want more multimedia music and video from the Internet. "We've been in conversation with Time Warner for quite a long time, back and forth, trying to understand what the FTC ruling would require and trying to work with them on the details," said Mary Rickert, vice president of marketing for Internet Junction. Cable access is up to 50 times faster than dial-up connections. It's also more expensive. Earthlink currently is the least costly in the bay area, with an introductory offer for $41.95 a month. Road Runner charges $44.95, and AOL has $44.95 and $54.95 plans. Verizon's WorldWind service, available in parts of Pinellas County served by americast cable, is $41.95. "We intend to be competitive," said Rickert, though Internet Junction has not yet set its rates. It hopes to offer the service within four months. "We have a distinct advantage in being a local provider in having quite a large customer base," Rickert said. The company, which started in 1996 with four employees and now has 35, will expand into the Orlando market as part of the deal. Rickert could not say how many new jobs, if any, the company might add. Source: � St. Pete Times, published December 28, 2001. Full article. -- Information from Bloomberg News was used in this report. Dave Gussow can be reached at gussow@sptimes.com or (727) 445-4228. CBS MarketWatch article The New York Times Technology Briefing article AOL Time Warner finds new ISP partner In an attempt to satisfy regulatory requirements, AOL Time Warner is asking the Federal Trade Commission to let another independent service provider offer high-speed Net access on the media giant's cable network. If the FTC approves the application, submitted last week, customers could choose to receive online access from Internet Junction Services over AOL Time Warner's cable systems in central Florida. The Internet and media company also asked the FTC to approve another ISP, New York Connect.Net, for cable-modem service via its system in New York. The company added that it plans to submit shortly for FTC approval an agreement with South Texas Internet Connections to offer its high-speed access on its system in Houston, San Antonio and Austin, Texas. As the owner of the nation's second-largest cable network, AOL Time Warner sells high-speed interactive services to customers. Regulators imposed conditions on AOL Time Warner's network after competitors raised concerns that the company's cable ownership would leave out rivals looking to launch high-speed Internet access services. The FTC is requiring the media giant to offer high-speed Internet access over its cable systems from at least three rivals. The company has deals to offer services from EarthLink and from United Online, formed by last month's merger of NetZero and Juno Online Services. But AOL Time Warner lost its third ISP partner last month when High Speed Access pulled out of its agreement, citing financial difficulties. Despite the collapse of the High Speed Access deal, AOL Time Warner has begun offering EarthLink and its own America Online division in Columbus, Ohio; Syracuse, N.Y.; Raleigh, N.C.; and Tampa, Fla. Click here for the entire article. Washington Post article |
|
||||||||||||
