Cybersecurity Company Extorted Its Clients, Says Whistleblower

An anonymous reader writes: Richard Wallace used to be an investigator for Tiversa, a cybersecurity company that sells services like "breach protection" and "incident response." These days, Wallace is testifying in federal court that Tiversa faked breaches to encourage sales, and extorted clients that weren't interested. For example, Wallace said Tiversa targeted a cancer testing center called LabMD in 2010, tapping into their computers and downloading medical records. Tiversa then used those records as evidence to convince LabMD they had been hacked, offering its "incident response" service at the same time. LabMD didn't fall for it, so Tiversa told the FTC about the "hack." The FTC, none-the-wiser, went after LabMD in court, eventually destroying the business. Wallace has also cast suspicion on reports Tiversa has issued, including one saying President Obama's helicopter blueprints were found on Iranian computers.

Comments

Re:Tiversa breached systems?

[Pi1grim]

Well, fun fact, if some kid breaches the system and then gives the evidence that system is flawed to the company without demanding any money - than he's a criminal, if a large company does the same, only demanding a large payment for services rendered and subscription to future services - then it's business as usual.

LEO

[jythie]

I love how they use awards by law enforcement as an example of them being good actors. One of the old and scary problems in our legal system has always been law enforcement working with really shady companies and protecting them. The fraternal atmosphere tends to leave police departments particularly vulnerable to being scammed, esp when those scams result in things that benefit the department like cash, 'evidence', or validation of existing prejudice.

Re:Tiversa breached systems?

[Bob9113]

LabMD may still have had a security problem worthy of investigation. But Tiversa's behavior is the subject of this criminal investigation. If Tiversa only blew the whistle on LabMD after they declined to purchase Tiversa's services, they are arguably engaged in racketeering, and should be prosecuted.