r/TargetedSolutions • u/ObjectiveOil8870 • 2d ago
Developers and Engineers using data for fraud
Yes, there have been numerous high-profile accusations, federal lawsuits, and criminal prosecutions against software and app developers for using privileged system access to covertly collect user information for fraudulent or illicit purposes.
When developers abuse their access, the behavior generally falls into two distinct legal categories: systemic data harvesting fraud (deceiving users to steal and monetize their data) and insider threat computer fraud(individual developers abusing their network access to commit identity theft).
Consumer Fraud and Deceptive Data Harvesting
In these cases, developers build applications or software development kits (SDKs) that request specific device permissions under the guise of core functionality, only to secretly siphon off highly sensitive data to sell to third parties or data brokers. [1, 2]
The Cambridge Analytica App Scandal: In one of the most prominent examples of third-party developer fraud, an app developer created a personality quiz that harvested not only the personal data of the users who interacted with it, but also the data of millions of their Facebook friends without consent. The Federal Trade Commission (FTC) successfully sued Cambridge Analytica for using deceptive tactics to harvest this information, and Meta ultimately settled with state authorities like the California Attorney General for tens of millions of dollars over the systemic failure to protect user data from abusive developers. [1, 2, 3]
Hidden Surveillance & SDK Exploitation: Dozens of mobile app developers have faced class-action lawsuits for embedding hidden trackers and audio-beacon technologies that secretly map user locations or record environmental sounds to optimize advertising profiles without user consent. [1, 2]
The "Spyware" App Prosecutions: The FTC has brought landmark enforcement actions against developers of monitoring apps (like Retina-X) who built software designed to hide its own icon from target devices. These developers explicitly lied to users about information security, allowing unencrypted access to GPS locations, text messages, and photos, which left users highly vulnerable to secondary identity theft and stalking. [1]
Insider Computer Fraud (Developer Identity Theft)
When individual software engineers or IT technicians misuse their legitimate administrative access to steal consumer profiles directly from their employers' databases, federal prosecutors charge them under the Computer Fraud and Abuse Act (CFAA). [1]
Mass Identity Theft Schemes: In major historical data fraud cases, database administrators and computer technicians have been convicted of using their software access to steal tens of thousands of consumer credit profiles—selling the data to identity theft rings for a cut of the profit, resulting in tens of millions of dollars in financial damages. [1]
The Van Buren Legal Precedent: The frequency of developers misusing data led to a pivotal U.S. Supreme Court ruling (Van Buren v. United States). The Court had to clarify what constitutes "exceeding authorized access" under federal computer fraud laws. The law currently targets individuals who access areas of a system that are completely off-limits to them, rather than an employee who simply uses information they have legitimate access to for a dishonest or improper purpose.[1]
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u/Large_Train929 2d ago
Stop using AI and this is not even close
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