Attorney General James received $410,000 from tech companies for illegally promoting spyware and violating the privacy of New Yorkers

New York Attorney General Letitia James today received $410,000 from Patrick Hinchey and 16 of his companies for illegally advertising spyware that allowed people to control another person’s device without their knowledge. Software products sold by Hinchy’s companies allowed users to secretly track activities on another device, including call logs, text messages, photos and videos, location, Gmail activity, WhatsApp and Skype messages, social media activity, and browsing history. Company advertisements and promotions led customers to believe that the use of their spying products was legal, yet installing and using spyware to spy on another adult’s mobile device without their consent violates numerous state and federal laws. As a result of the agreement, Hinchy’s companies must pay a $410,000 fine and change their apps to alert device owners that their devices are being tracked.

“Spying on a partner and tracking their mobile phone without their knowledge is not just a sign of an unhealthy relationship, it is against the law,” the company said. Attorney General James. “These apps and products put New Yorkers at risk of harassment and domestic violence, and have been heavily promoted by Patrick Hinchey through 16 different companies. Today’s agreement will not allow these companies to allow control of New Yorkers without their knowledge and will continue our ongoing fight to protect the rights, safety and privacy of New Yorkers.”

A consortium of companies owned by Hinchy promoted several apps as tools to spy on spouses or intimate partners without their knowledge or consent. An investigation by the Attorney General’s Office (OAG) found that Hinchy and his companies also misrepresented their refund and data security policies, failed to disclose the potential harm to a device caused by the installation of their products, and set up bogus review sites to lure customers into buying and using stalkerware products.

The investigation found that Hinchy created numerous websites that purported to provide independent technology advice but were in fact exclusively promoting stalker products sold by Hinchy’s companies. The Hinchy intelligence companies also did not disclose the need to perform an invasive procedure known as rooting for Android devices or jailbreaking on Apple devices, nor the risks associated with such procedures. Customers have also been misled by confusing refund policies and false claims about the security of information obtained through stalkerware products.

Today’s agreement requires Hinchy and his companies to pay $410,000 in fines, seizure of money and legal fees. In addition, Hinchy companies must modify applications and software to ensure that the owner of the monitored device is notified and informed of the types of information that the application or software collects and is available for viewing by the user of the product. The agreement also requires Hinchy and his companies to make accurate disclosures about approvals, rooting and jailbreak requirements, refund policies, and data security.

Hinchy-owned companies named in today’s agreement include Powerline Group Inc., Powerline Media LLC, Powerline Data LLC, Powerline Digital LLC, Powerline Commerce LLC, ILF Mobile Apps Corp., Auto Forward Data Services LLC, DDI Utilities Inc., DDI Data Solutions Inc., Highster Mobile Inc., Highster Data Services LLC, PhoneSpector LLC, Safeguarde LLC, BFG Marketing LLC, Digital Security World LLC and CTS Technologies Corp.

The issue was handled by Assistant Attorneys General Mark Montgomery, Gina John, and Laura Mumm of the Bureau of Internet and Technology, under Bureau Chief Kim A. Berger and Deputy Bureau Chief Clark P. Russell. The Bureau of Internet and Technology is part of the Office of Economic Justice, which is led by Chief Deputy Attorney General Chris D’Angelo and First Deputy Attorney General Jennifer Levy.