Menu
FTC settles with developers of sneaky cryptocurrency mining app

FTC settles with developers of sneaky cryptocurrency mining app

The Prized app secretly mined virtual currencies on mobile phones

The developers of an app called Prized have settled with the FTC for allegedly secretly mining cryptocurrencies on phones.

The developers of an app called Prized have settled with the FTC for allegedly secretly mining cryptocurrencies on phones.

The developers of a mobile app called Prized that secretly mined cryptocurrencies on people's mobile phones have settled with the U.S. Federal Trade Commission after being accused of deceptive trade practices.

Equiliv Investments and Ryan Ramminger, both of Ohio, settled for US$50,000, of which $44,800 will be suspended upon payment of $5,200 to New Jersey regulators, the agency said in a news release Monday. The suit was filed in U.S. District Court for the District of New Jersey last Wednesday.

The defendants were accused of violating the FTC Act and the New Jersey Consumer Fraud Act. As part of the deal, the defendants admitted to none of the allegations.

The Prized mobile app was available on Google's Play service and Amazon's App Store among others starting around February 2014. It presented itself as an app that rewarded people with points for playing games. Those points could be redeemed for items such as clothes and gift cards, the FTC said.

Although Prized claim to be free of malware, it contained a malicious component that mined the virtual currencies DogeCoin, LiteCoin and QuarkCoin. Those virtual currencies are generated by solving mathematical problems, which were processed by phones.

As a result, the computations used up people's battery power and ate through their monthly data plans, the FTC said.

The settlement requires the defendants to destroy any data collected through marketing and distributing the application. They are also banned from distributing misleading software or software that rewards people with points or prizes.

Send news tips and comments to jeremy_kirk@idg.com. Follow me on Twitter: @jeremy_kirk


Follow Us

Join the newsletter!

Error: Please check your email address.

Tags U.S. Federal Trade Commissionsecuritymobile securityCivil lawsuitslegalmalwareEquiliv Investments

Featured

Slideshows

Sizing up the NZ security spectrum - Where's the channel sweet spot?

Sizing up the NZ security spectrum - Where's the channel sweet spot?

From new extortion schemes, outside threats and rising cyber attacks, the art of securing the enterprise has seldom been so complex or challenging. With distance no longer a viable defence, Kiwi businesses are fighting to stay ahead of the security curve. In total, 28 per cent of local businesses faced a cyber attack last year, with the number in New Zealand set to rise in 2017. Yet amidst the sensationalism, media headlines and ongoing high profile breaches, confusion floods the channel, as partners seek strategic methods to combat rising sophistication from attackers. In sizing up the security spectrum, this Reseller News roundtable - in association with F5 Networks, Kaspersky Lab, Tech Data, Sophos and SonicWall - assessed where the channel sweet spot is within the New Zealand channel. Photos by Maria Stefina.

Sizing up the NZ security spectrum - Where's the channel sweet spot?
Show Comments