Cybersecurity Policy Report, New York AG Fines 'Stalkerware' Provider, (Feb 3, 2023)
New York Attorney General Letitia James (D.) has secured $410,000 from an individual and 16 of his companies over the provision of "stalkerware" that enabled users to secretly monitor another person's device.
According to a settlement reached by AG James and Patrick Hinchy, the companies' owner, the software products allowed users to secretly monitor activity on another device, including call logs, text messages, photos and videos, location data, e-mails, social media activity, and browsing history. People were led to believe that the products were legal, but installing and using stalkerware to monitor devices without the owner's consent violates numerous state and federal laws, AG James said.
An investigation revealed that Mr. Hinchy created numerous websites that purported to offer independent technology advice, but the sites solely promoted the stalkerware products sold by the companies and failed to disclose the need to perform an invasive procedure called "rooting" for Android devices or "jailbreaking" for Apple devices without advising on the risks associated with the procedures, AG James said.
In addition to the fine, the companies will have to modify their apps to alert device owners that they are being monitored. The AG's office also found that the individual and his companies "misrepresented their refund and data security policies, failed to disclose the potential harm to a device caused by the installation of their products, and created sham review sites to lure customers into purchasing and using the stalkerware products." The agreement requires Mr. Hinchy and his companies to make accurate disclosures regarding endorsements, rooting and jailbreaking requirements, refund policies, and data security.
The companies named in the agreement include Powerline Group, Inc., Powerline Media LLC, Powerline Data LLC, Powerline Digital LLC, Powerline Commerce LLC, ILF Mobile Apps Corp., Auto Forward Data Services LLC, DDI Utilities, Inc., DDI Data Solutions, Inc., Highster Mobile, Inc., Highster Data Services LLC, PhoneSpector LLC, Safeguarde LLC, BFG Marketing LLC, Digital Security World LLC, and CTS Technologies Corp.
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