FTC Temporarily Shuts Down Digital Forensics Corporation Over Alleged Million Fraud

FTC Temporarily Shuts Down Digital Forensics Corporation Over Alleged $60 Million Fraud

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A federal court has temporarily shuttered Digital Forensics Corporation after the Federal Trade Commission alleged the company defrauded sextortion victims of at least $60 million. The firm promised to track criminals and secure evidence for law enforcement, but investigators found it often did nothing, instead pressuring victims into paying thousands for non-existent services.

The FTC Complaint Against Digital Forensics Corporation

The Federal Trade Commission announced on October 13, 2026, that it had secured a temporary restraining order against Digital Forensics Corporation (DFC). The agency’s federal complaint, which was filed under seal in Ohio the previous week, alleges the company orchestrated a massive scheme targeting individuals already in the midst of a crisis.

Sextortion involves criminals threatening to release intimate images unless a victim pays a ransom. According to the FTC, DFC positioned itself as a solution, using aggressive online advertising on platforms like Google, YouTube, and X to reach desperate targets. The company claimed it could track down cyber criminals across the world and give law enforcement the evidence they need to make arrests.

DFC Charged High Fees for Fabricated Investigative Reports

The company utilized an escalating fee structure that drained victims of significant funds. Customers were initially charged between $1,499 and $20,000 for a “Phase 1” package. This service supposedly included locating the blackmailer, communicating on the victim’s behalf, and producing an official report for authorities. In reality, the FTC alleges that DFC staff simply blocked the sextortionists on the victims’ accounts—a step the victims could have performed for free—and fabricated chat transcripts to make it appear as though they were negotiating.

Former employees told regulators that the company routinely reused map coordinates, often pointing to locations in Nigeria or the Philippines, to deceive clients. Following the initial payment, the firm frequently pressured customers to pay an additional $2,000 to $5,000 or more for “Phase 2” monitoring.

Tactics Used to Suppress Negative Feedback

To maintain its facade, DFC reportedly engaged in a coordinated effort to manipulate its online reputation. The complaint states that the company hired workers in India to write positive reviews and even paid Uber drivers to post testimonials using staged photos. When actual victims attempted to voice their dissatisfaction, the company allegedly directed them to fake Better Business Bureau websites. Furthermore, the firm conditioned any potential refunds on the victim’s agreement to remove their negative reviews from the internet.

The FTC’s investigation into the company’s practices mirrors previous reporting, including a 2025 investigation by USA TODAY that unearthed over 100 complaints. In court filings, FTC attorneys noted that the Defendants have repeatedly demonstrated they will not cease their unlawful activities despite many complaints and multiple inquiries from consumer protection agencies. Attorneys for DFC have indicated in court filings that they intend to oppose the restraining order and the appointment of a receiver for the company’s assets.

Free Resources for Sextortion Victims

Federal authorities are emphasizing that victims do not need to pay for-profit services to address sextortion threats. The FBI advises victims to ignore and block blackmailers rather than engaging with them or sending money.

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  • Take It Down: A service provided by the National Center for Missing and Exploited Children for minors to request the removal of intimate images.
  • StopNCII.org: A platform for adults to assist in the removal of non-consensual intimate imagery.
  • Law Enforcement: Victims are encouraged to contact their local FBI field office or report crimes to local police.

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