The Federal Trade Commission is asking a court to force the owner of multiple digital security and privacy companies from further operations, saying the businesses are serially defrauding their customers out of millions of dollars.

Earlier this month, the FTC filed a federal lawsuit in Ohio against Dmitry Belkin and 12 of his businesses, alleging they engaged in unfair and deceptive trade practices under the Federal Trade Act and violated the Telemarketing Act’s prohibition against deceptive and abusive telemarketing acts since at least 2020.

The majority of Belkin’s companies, with names like Digital Forensics Corp., 1^st All Data Recovery and Remote Backup Corp., advertised services to help people deal with ongoing online romance or “sextortion” scams, where a scammer threatens to publish a nude or sexual photo of the victim unless they pay a ransom.

They operated websites like BlackmailHelpline.com, DigitalForensics.com and other sites that would routinely be advertised on Google, YouTube, X and other sites when users are searching for help with sextortion attacks.

The FTC alleges that despite taking in at least $60 million from customers, Belkin and his companies routinely failed to deliver most of the listed services meant to protect customers from ongoing scams, generated fake transcripts to fool customers into believing a sextortion threat had dissipated and routinely denied requests for refunds.

“Defendants falsely portray themselves as digital forensics experts, claiming they can track and identify sextortionists, prevent the spread of explicit material, and coordinate with law enforcement to bring criminals to justice,” the FTC said in its complaint. “Defendants further mislead victims by asserting that law enforcement will not help stop the sextortion attack” and that contacting the police is “the last thing you want to do.”

According to the complaint, Belkin’s businesses would first pitch a “Phase 1” package of services, between $1,499 and $20,000, that included “stopping” an ongoing attack, handling communications with the sextortionist, tracing their location, sending a legal cease-and-desist letter and reporting the evidence to law enforcement.

The FTC complaint alleges that in reality, the companies simply use the customer’s account to communicate with the scammer, before changing account settings to block them, fabricating chat transcripts and using pre-saved geolocation coordinates to fool customers.

After customers purchased Phase 1 services, Belkin’s companies would routinely pressure them for thousands of dollars in additional “Phase 2” services, which were advertised as monitoring services for victim accounts that could detect and prevent future attacks.

“Defendants do not perform any of these services either,” the FTC alleged.

The complaint alleges that Belkin drafted a script for employees at his companies to use during telemarketing calls, designed explicitly to exploit victims’ fears and anxieties around their nude images being made public. This included comments implying that a bad actor could alter a real photo of the victim to include sexual acts with minors, spurring concerns about legal liability. After each call, employees filled out a form confirming they had used certain keywords or phrases, such as “pedophile,” “devastating consequences,” “life altering” and “no coming back after this.”

“I’ve seen these situations ruin people’s retirement all from the accusation of being a child predator,” the script said at one point, according to the complaint. “We need to make sure nothing gets posted.”

Some customers were also asked seemingly unrelated questions about their personal lives, such as if their marriage was “on the rocks,” had cheated on their spouses, or had young children that could “mean a custody battle” if the images were released publicly.  

The companies received hundreds of requests for refunds but often denied them, also going to great lengths to prevent or drown out negative reviews online. Unhappy customers were directed to a fake version of the Better Business Bureau’s website, controlled by Belkin, to submit their complaints.

The actual Better Business Bureau page for one of the businesses, Digital Forensics Corp., still includes numerous complaints from customers alleging they were defrauded. One customer complaint, filed in August, states that they signed a contract in 2023 “out of sheer panic and fear” and were still making payments because “they had my personal information and would contact me if I didn’t pay.”

Another review from a customer in June said they were “pressured” into a contract with the company in 2024, were still making monthly payments and when they contacted the company to cancel, were told they “could not close the account and must continue making payments.”

In both cases, the company responded within days, offering “alternative” options to resolve the disputes, such as paying a reduced settlement for the remaining balance.

They also allegedly flooded their own websites with fake positive reviews, gave partial refunds paired with non-disparagement agreements to push some customers to take down their negative reviews, and even hired Uber drivers to post fake testimonials with staged photographs.

Requests for comment sent to Belkin’s attorney and his personal LinkedIn account were not returned.

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Senators from both parties Thursday probed Trump administration officials about whether federal agencies and foreign governments are coordinated enough in the battle against scammers, something witnesses told the Foreign Relations Committee they were working to remedy.

At least 13 federal agencies have authorities to counter scams, raising questions about whether someone needs to be in charge of all those efforts. And while there was some bipartisan sentiment at Thursday’s hearing that the Trump administration has taken good actions to battle scammers, both lawmakers and administration officials said that scam operations have demonstrated that cracking down on them in one place often just leads to them going elsewhere.

Sen. Pete Ricketts, R-Neb., compared the situation to an international initiative that gained prominence in the 1990s to counter drug trafficking, Joint Interagency Task Force South.

“Given that today’s scam centers are similarly transnational, combining cybercrime, human trafficking, money laundering and cryptocurrency, has the threat reached the point that we should establish a comparable multinational coordination mechanism?” he asked.

Sen. Jeanne Shaheen, D-N.H., focused on federal coordination: She paraphrased a former federal official who said, “there is nobody that is heading that effort up across agencies. We need to treat this like combat, and so we need somebody in charge.”

Shaheen, the top Democrat on the panel, is a co-sponsor of the bipartisan Scam Compound Accountability and Mobilization (SCAM) Act, which seeks to unify federal efforts on the subject.

A State Department official told Shaeen scammers were a national security priority for President Donald Trump, and that his executive order on the topic sought to tackle coordination.

“I do understand that this is a whole-of-government approach, and many agencies are focused on this,” said David Bedard, deputy assistant secretary at State’s Bureau of International Narcotics and Law Enforcement Affairs “The Action plan that was directed by the president is currently in the interagency review process to deconflict some of the concerns that you have raised. We certainly think the task force that will be implanted through the executive order will solve the problems you might be referencing.”

There’s also an international plan under the task force, he said. Currently, the administration shares intelligence on scammers with foreign allies, and Interpol has “productive” channels to work through there and is setting up its own task force, Bedard said, but there are concerns about other countries taking similar, duplicative action.

There have been signs of progress on the international front, Bedard and another State Department witness told the panel.

Michael DeSombre, assistant secretary at the Bureau of East Asian and Pacific Affairs, said Trump has raised the subject with Chinese President Xi Jinping, and that China has used its influence in Asia as its own citizens have become scam victims. Still, there’s been more progress in countries where the United States has stronger relations, such as Cambodia, than in those where ties aren’t as close, like Burma and Laos.

In Cambodia, one key has been pursuing scam center bosses first and foremost, Bedard said.

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The State Department will restrict visas for cybercriminals like scammers to sextortionists, and in some cases even their family members, Secretary of State Marco Rubio said Thursday.

The Trump administration has sought to make a crackdown on foreign-based scams one of the signature issues of his second term. An executive order that the president signed in March indicated that visa restrictions would be on the table as one response.

“By restricting visa issuance to those who are responsible for or complicit in these criminal enterprises, we are sending a clear message: The United States will go after those who prey on our citizens,” Rubio said.

Other departments have also made efforts to reduce foreign-run scams. In June, the Department of Justice seized infrastructure used by subsidiaries of the Huione Group, a Cambodia-based corporate conglomerate tied to one of the world’s most prolific criminal marketplaces used to commit cyber scams and other crimes.

Rubio authorized the visa restrictions under a 1952 law that gives the State Department the ability to deport or rule as inadmissible someone who poses “potentially serious adverse foreign policy consequences.”

Critics have accused the Trump administration of abusing that provision of the law for political purposes.

Rubio’s statement on the visa restrictions mentions “individuals responsible for, or complicit in, cybercrime and cyber-enabled crime, such as those involved in cyberscams, and sextortion.”  Furthermore, he said, “Immediate family members of individuals engaged in such illicit activities may also be subjected to visa restrictions.”

Betsy Cooper, Founding Director of the Aspen Policy Academy, said the visa restrictions on cybercriminals could be valuable, but offered a caveat.

“Scamming people is a growing global enterprise, and it is a laudable goal to penalize those who scam and defraud people since they so rarely suffer consequences for their actions,” she said in a statement to CyberScoop. “So long as the new visa controls are used narrowly and deployed only against verified scammers and fraudsters, this is a positive step toward combatting cyber-enabled crime.”

While some cyber experts have questioned how much visa restrictions, prosecutions and other punishments of cyber miscreants who are based overseas will affect them, others maintain that it can serve as a deterrent to those who would consider getting into the line of work but want freedom to travel the globe.

FightCyberCrime.org, a nonprofit that seeks to help cybercrime victims, applauded the restrictions on the cybercriminals.

“We welcome efforts to hold cybercriminals accountable across borders. Cryptocurrency investment scams, romance scams, and sextortion cause devastating financial and emotional harm to victims,” it said in a statement to CyberScoop. “Meaningful disruption of these transnational criminal networks is an essential part of the response.”

But there’s still a long way to go in the fight, the statement continued.

“At the same time, we must invest more in victim support, prevention, and recovery resources,” the organization said. “Accountability is critical, but ensuring victims have access to trauma-informed support and resources is equally important.”

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