Over 200,00 Sky customers have been sold fake insurance for their Satellite TV.
According to an investigation, three firms have been making stacks of cash by selling unauthorised Sky insurance.
The Financial Services Authority has since obtained a High Court ruling that closes for business Digital Satellite Warranty Cover Limited, Satellite Services and Nationwide Digital Satellite Warranty Services Limited.
The firms were run by just two directors, and they managed to persuade 200,000 customers to part with monthly premiums between £6.49 and £11.49, promising unlimited callouts covering all parts and labour costs.
But the firms did not have permission to offer this kind of insurance.
Sky has offered free cover for its customers affected by the scam. A Sky spokesperson said: 'We've worked with the relevant authorities to put the needs of our customers first.
'To ensure our customers are not left inconvenienced or out of pocket, we've stepped in to help.'