Feds keeping close eye on Kaspersky Lab – By Jordan Graham (bostonherald.com) / April 25 2018
Sanctions could be next
Federal officials are reportedly considering formal sanctions against Kaspersky Lab, a cybersecurity company with its U.S. headquarters in Woburn, over accusations the company is controlled by the Russian government and that its software could be used to spy on Americans.
Federal officials are mulling the action against the company as part of a wider group of Russian sanctions, according to a report by CyberScoop, an online cybersecurity news site.
Over the past year, accusations that Kaspersky’s virus detection software may have been used by Russian intelligence have surfaced. The Department of Homeland Security has directed federal agencies to stop using Kaspersky software.
Eugene Kaspersky, founder of the company, was trained at a KGB-sponsored cryptography institute and worked for Russian military intelligence before starting the company in 1997.
In a statement, Kaspersky denied the accusations and called on the government to declassify any evidence to the contrary.
“The continued actions by the U.S. government against Kaspersky Lab lack sufficient basis, have been taken without any evidence of wrongdoing by the company, and rely upon subjective, non-technical public sources, such as uncorroborated and often anonymously sourced media reports and rumors,” the company said.
U.S. Sen. Jeanne Shaheen (D-N.H.) has been one of the most vocal elected officials calling for action on Kaspersky.
“The evidence of close ties and cooperation between Kaspersky Lab and the Kremlin is overwhelming,” Shaheen said.
“Sanctioning Kaspersky Lab is a logical next step.”
Kaspersky has sued the U.S. government over the ban, claiming it wasn’t given enough notice under the law. The reports say sanctions would probably come after the lawsuits are resolved.
Kaspersky has been under increased scrutiny for more than a year. Last year, the company confirmed federal agents had approached employees, and at a Congressional hearing, six heads of the country’s intelligence agencies said they would not feel comfortable with Kaspersky software on their computers, with Director of National Intelligence Dan Coats saying it was a “resounding no.”
Kaspersky has faced some other consequences as the scrutiny becomes more public. Last week, Twitter told the company it would no longer be able to buy ads, and stores including Best Buy have pulled Kaspersky products from their shelves.
Blake Darche, a cybersecurity executive at Area 1 Security and a former NSA analyst, said formal sanctions would likely be crippling for Kaspersky.
“It’s very difficult to understate the significance of a sanction — it would be the end of them in the Western Hemisphere,” Darche said. “If Kaspersky is sanctioned by the United States government, it would be difficult to imagine they would be allowed to maintain a physical presence.”
Kaspersky had roughly 300 U.S. employees as of 2015, mostly in Woburn.
http://www.bostonherald.com/business/technology/2018/04/feds_keeping_close_eye_on_kaspersky_lab
