WASHINGTON (AFP) - Three men have been indicted in connection with a Ukraine-based fraud scheme which tricked Internet users into believing their computers were infected and collected some 100 million dollars.

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Internet users in more than 60 countries purchased more than one million bogus software products from the three defendants, two Americans and a Swede, the Justice Department said in a statement.

A 31-year-old Swedish citizen believed to be in Sweden, and 40-year-old US citizen believed to be living in Ukraine, were each charged with 24 counts of wire fraud and one count each of conspiracy to commit computer fraud and computer fraud.

A 26-year-old American was charged with 12 counts of wire fraud and one count each of conspiracy to commit computer fraud and computer fraud and is expected to appear before a US District Court in Chicago.

"These defendants allegedly preyed on innocent computer users, exploiting their fraudulently induced fears for personal gain," said FBI special agent Robert Grant.

The Swede and the 40-years-old American were the owners and operators of a company called Innovative Marketing located in Kiev that purported to sell anti-virus and computer repair software. The American was IM's chief executive while the Swede served as chief technology officer.

They are accused of placing fake advertisements on legitimate company websites which led Internet users to falsely believe that their computers had been infected with a virus or had critical errors.

The Internet users were then induced to buy software products with names such as "ErrorSafe" and "DriveCleaner" to fix the purported problems, paying online by credit card to bank accounts in Europe controlled by the defendants.

The scheme employing what is commonly known as "scareware" is considered one of the fastest-growing and most prevalent types of fraud on the Web.

Each count of wire fraud carries a maximum penalty of 20 years in prison.

Last Updated (Friday, 28 May 2010 07:30)