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Archive for 'Software Crimes'

Investigation Reportedly Launched by Department of Justice into Uber’s Use of “Greyball” Software

Written by on Saturday, May 6th, 2017

The Department of Justice has launched an investigation into Uber’s use of the “Greyball” software program, following recent reports about the company’s use of this software to evade local law enforcement officials and regulators in new markets where the service was not yet permitted, according to Reuters.  Reuters reports that Uber has received a subpoena from a grand jury in Northern California  “seeking documents concerning how the software tool functioned and where it was deployed.”

According to Reuters, the investigation is still in its “early stages” and the nature of any potential federal criminal violation is “unclear.”

Reuters is also reporting that the city of Portland, Oregon is also planning on issuing a subpeona to Uber to force it to disclose the Greyball software.   According to Reuters, if Uber does not comply with the subpoena, the city of Portland will “review” Uber’s ability to operate in the city.

Uber’s use of the “Greyball” software program first came under scrutiny as a result of a story by the The New York Timeswhich was published in early March 2017 and reported on how Uber had used this software program as part of a larger program at Uber known as “VTOS”–an abbreviation for “Violation of Terms of Service.”     Following the publication of the report, Uber announced that it had ended the program, as reported by  The New York Times.

The Mercury News described Greyball as a tool that “allowed Uber to display a fake version of the app to certain customers” and to “block law enforcement” from requesting rides where Uber was “operating in violation of local rules.

It has been reported that the law firm of Sherman & Sterling has been retained by Uber’s board to conduct an internal investigation into how the software was used.  See The Mercury News.

The Department of Justice investigation is the latest in a string of legal problems for Uber this year, which have included legal issues over Uber’s classification of drivers, sexual harassment claims, and a trade secret lawsuit.  One cannot help but wonder what the long-term business impact will be of all of these legal problems on the ultimate success or failure of the company.


Could a Software Developer Whose Code is Used for Hacking Be Convicted of a Crime?

Written by on Saturday, April 29th, 2017

If you are a software developer and you develop code that hackers then use to commit crimes, then you may be a risk for criminal prosecution, as an Arkansas developer named Taylor Huddleston recently discovered according to an article published by The Daily Beast.

According to The Daily Beast, Huddleston developed a remote administration tool called “NanoCore” that is popular with hackers but claims that he intended his tool to be adopted by “budget-conscious school IT administrators, tech support firms, server farms, and parents worried about what their kids are doing online.” The Daily Beast reports Huddleston is now being prosecuted on federal charges of conspiracy and aiding and abetting computer intrusions.

Could going after developers of software used by hackers be a new trend in law enforcement?

The Daily Beast article suggests that this could in fact be a new strategy in law enforcement, and points to the government’s 2012 prosecution of Michael “xVsiceral” Hogue, who had participated in “creating and selling a remote access program called Blackshades” which constituted ransomware, as possible motivation for the strategy, since the government subsequently entered into a deal with Hogue, which enabled U.S. & European authorities being able to successfully prosecute 100 users of the software over a two-year long investigation.

The bottom line is that developers who create code or products that may have legitimate as well as hacking applications should be on notice that they could become the target of a federal investigation or even be federally prosecuted as a result of their development activities.  The Huddleston case certainly suggests that software innovators should be considering how their innovations may be utilized once developed before they actually follow through with the development, and certainly should be seeing outside legal counsel on these issues prior to engaging in the development of a product that may have both innocuous and criminal applications.  Developers in such circumstances also may want to re-consider the wisdom of engaging in independent development and seek out corporate support for their development project.


Category: Software Crimes  |  Comments Off on Could a Software Developer Whose Code is Used for Hacking Be Convicted of a Crime?

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