Scott Zuckerman, Serial Spyware Founder, Seeks FTC Reinstatement

Spyware Executive Seeks to Lift FTC Ban After Data Breach

The individual who founded a company specializing in spyware and was previously prohibited from participating in the surveillance sector due to a prior data security incident is currently requesting a reversal of this ban, as reported by the Federal Trade Commission.

FTC Notice and Previous Ban

In a public notice released on Friday, the federal regulatory body stated that Scott Zuckerman is attempting to have the 2021 ban, levied against his company Support King and its related entities, either rescinded or altered.

The original ban stipulated that Zuckerman must adhere to specific cybersecurity protocols and undergo regular audits for all his business ventures. This requirement stemmed from a 2018 incident where his spyware subsidiary, SpyFone, exposed sensitive personal data – including photographs, text messages, and location information – belonging to thousands of individuals on the public internet.

Unanimous Commission Vote

The FTC’s commissioners, at the time, reached a unanimous decision to prohibit Zuckerman and Support King from offering, marketing, or selling any application designed for phone monitoring. This effectively barred him from further involvement in the surveillance industry.

Zuckerman's Claim of Undue Burden

Zuckerman now asserts that the imposed order presents an “unnecessary burden,” arguing that the financial obligations associated with compliance are hindering the expansion of his other business interests.

Potential Cybersecurity Test for the FTC

The FTC’s consideration of Zuckerman’s petition is anticipated to be closely monitored by privacy advocates and those critical of the surveillance industry. It may represent a significant early test of cybersecurity enforcement under the newly Republican-led federal agency.

Should the agency decide to modify or completely eliminate the order, it would potentially allow a surveillance vendor with a documented history of data breaches to resume operations without restriction.

Continued Involvement in Spyware Operations

Despite the ban’s implementation in 2021, Zuckerman was discovered to be involved in another spyware operation within a year.

The SpyTrac Incident

In 2022, TechCrunch obtained a collection of compromised data originating from the servers of a phone spyware application known as SpyTrac. This revealed that the application was being operated by a team of freelance developers with established connections to Support King, seemingly in an effort to circumvent the FTC’s ban.

The leaked data also included records originating from SpyFone, despite the FTC’s directive for the company to delete illegally obtained data from victims’ devices. Furthermore, it contained access keys for OneClickMonitor, another spyware application that Support King had previously shut down alongside SpyFone. SpyTrac was taken offline shortly after Zuckerman was contacted for comment.

Criticism from the Security Community

Zuckerman’s petition is already drawing criticism from cybersecurity experts.

“I believe this petition should be strongly opposed. Mr. Zuckerman has consistently demonstrated a pattern of unethical behavior, continuing to operate his stalkerware company even after the ban was issued,” stated Eva Galperin, Director of Cybersecurity at the Electronic Frontier Foundation, in an interview with TechCrunch.

“The ban and the ongoing reporting requirements are undoubtedly burdensome for him, but that is precisely the intended effect,” Galperin added. “I am confident that Mr. Zuckerman would launch another stalkerware company if he believed he could do so without consequence.”

FTC Review and Public Comment

The FTC has not yet indicated how it will rule on Zuckerman’s petition, nor has it established a timeline for a decision. An FTC spokesperson declined to comment when contacted by TechCrunch.

The agency is legally obligated to solicit public feedback on petitions seeking to overturn existing orders. The deadline for submitting comments on Zuckerman’s petition is August 19.

FTC Composition and Current Leadership

The FTC is currently chaired by Andrew Ferguson, appointed by former President Trump, alongside fellow Republicans Mark Meador and Melissa Holyoak. Democratic commissioner Rebecca Kelly Slaughter was recently reappointed to the FTC after an attempt by the previous administration to remove her. The fifth commissioner seat remains unfilled.

Zuckerman's Appeal to the Commission

In his petition, Zuckerman directly appealed to Ferguson and the commission’s “current enforcement philosophy,” which he described to TechCrunch as focusing on “ensuring that regulations genuinely benefit consumers and the public.”

Continued Monitoring Requirements

Galperin emphasized the importance of maintaining reporting requirements for Zuckerman’s future endeavors if they “have any connection to the internet, given his repeated inability to safeguard sensitive user data.”