FTC bans SpyFone and its CEO from continuing to sell stalkerware

Nearly two years after the US Federal Trade Commission first took aim against mobile apps that can non-consensually track people’s locations and pry into their emails, photos, and videos, the government agency placed restrictions Wednesday on the developers of SpyFone—which the FTC called a “stalkerware app company”—preventing the company and its CEO Scott Zuckerman from ever again “offering, promoting, selling, or advertising any surveillance app, service, or business.”

Wednesday’s enforcement action represents a much firmer stance from the FTC compared to the settlement it reached in 2019, when the government agency refrained from even using the term “stalkerware” and it focused more on lacking cybersecurity protections within the apps it investigated, not on the privacy invasions that were allowed.

FTC Commissioner Rohit Chopra, who made a separate statement on Wednesday, said much of the same.

“This is a significant change from the agency’s past approach,” Chopra said. “For example, in a 2019 stalkerware settlement, the Commission allowed the violators to continue developing and marketing monitoring products.”

That settlement prevented the company Retina-X Studios LLC and its owner, James N. Johns Jr., from selling their three Android apps unless significant security rehauls were made. At the time, critics of the settlement argued that the FTC was not preventing Retina-X from selling stalkerware-type apps, but that the FTC was preventing Retina-X from selling insecure stalkerware-type apps.

This time, the FTC spoke more forcefully about the threat that these apps present to overall privacy and their undeniable intersection with domestic violence, saying in a release that the “apps sold real-time access to their secret surveillance, allowing stalkers and domestic abusers to stealthily track the potential targets of their violence.”

In that same release Wednesday, Samuel Levine, Acting Director of the FTC’s Bureau of Consumer Protection said:

“SpyFone is a brazen brand name for a surveillance business that helped stalkers steal private information. The stalkerware was hidden from device owners, but was fully exposed to hackers who exploited the company’s slipshod security. This case is an important reminder that surveillance-based businesses pose a significant threat to our safety and security. We will be aggressive about seeking surveillance bans when companies and their executives egregiously invade our privacy.”

The FTC’s enforcement against SpyFone will require the business—which is registered as Support King LLC—to also destroy any information that was “illegally collected” through its Android apps. It must also notify individuals whose devices were manipulated to run SpyFone apps, warning them that their devices both could have been monitored and may no longer be secure.

According to a complaint filed by the FTC which detailed its investigation into Support King, SpyFone, and Zuckerman, the company sold three versions of its SpyFone app (“Basic,” “Premium,” and “Xtreme”) at various prices. The company also sold “SpyFone for Android Xpress,” which the FTC described not as an app, but as an actual mobile device that came pre-installed with a one-year subscription for Android Xtreme. The price of the device started at $495.

The FTC also focused on the install methods for SpyFone’s apps, revealing that SpyFone required its users to subvert built-in cybersecurity protections on other mobile devices so to avoid detection by those devices’ operating systems. Certain functions advertised by SpyFone  also required extra manipulations by users, the FTC said.

“To enable certain functions of the SpyFone products, such as viewing outgoing email, purchasers must gain administrative privileges to the mobile device, such as through ‘rooting’ the mobile device, giving the purchaser privileges to install other software on the mobile device that the manufacturer would not otherwise allow,” the FTC said. “This access enables features of the SpyFone products to function, exposes a mobile device to various security vulnerabilities, and can invalidate warranties that a mobile device manufacturer or carrier provides.”

The FTC also found that SpyFone apps could hide themselves from view to their end-user—a telltale trait of apps that have been used to non-consensually track another user’s location and dig through their private messages and information.

The enforcement action also shows that the FTC is not strictly investigating the most popular or the most detected stalkerware-type apps on the market.

For example, Malwarebytes for Android detects the products made by SpyFone. Since the start of 2021 until yesterday, August 31, 2021, Malwarebytes detected these products a total of 334 times. The average detection count for the past six months is about 42 detections per month. These are comparatively low numbers when looking at similar apps, as our most-detected stalkerware-type apps have accrued roughly 4,000 detections since the start of 2021.

Malwarebytes also welcomes the news of the FTC’s enforcement and is excited for the agency’s new direction on this well-documented, pernicious threat to privacy.

The post FTC bans SpyFone and its CEO from continuing to sell stalkerware appeared first on Malwarebytes Labs.

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