11 May Ex-employee claims cyber-security company Tiversa hustled clients with doctored data
Quote from Brisbane Times
Fairfax has seen a transcript of Wallace’s testimony, which calls into question an industry that promises to shield companies from security threats but also outlines incentives to deceive them.
“I have never before heard of such an unethical company that would actually shakedown another using cyber threats,” Ty Miller, chief executive officer of Australian security firm Threat Intelligence, told Fairfax.
“The only technique that appears to be generally accepted is when a security breach has already occurred and the victims of the attack are approached to inform them.”
But offering services under those circumstances is “questionable”, said Miller. “It still raises suspicion as to whether the security company performed the initial breach.”
LabMD’s chief executive officer Michael Daugherty toldCNNMoney that the FTC’s lawsuit killed the business.
Daugherty hasn’t responded to questions by Fairfax, but he recently testified that the FTC used “extortionate” tactics to force a settlement that would have placed LabMD in a “hall of shame” that would doom the business.