{"id":14,"date":"2018-05-03T20:14:00","date_gmt":"2018-05-03T20:14:00","guid":{"rendered":"https:\/\/kasperskycontenthub.com\/threatpost\/?p=131679"},"modified":"2018-05-03T20:14:00","modified_gmt":"2018-05-03T20:14:00","slug":"phone-maker-blu-settles-with-ftc-over-unauthorized-user-data-extraction","status":"publish","type":"post","link":"https:\/\/www.threatshub.org\/blog\/phone-maker-blu-settles-with-ftc-over-unauthorized-user-data-extraction\/","title":{"rendered":"Phone Maker BLU Settles with FTC Over Unauthorized User Data Extraction"},"content":{"rendered":"<div class=\"media_block\"><\/div>\n<div><img decoding=\"async\" src=\"https:\/\/media.kasperskycontenthub.com\/wp-content\/uploads\/sites\/31\/2017\/08\/06223456\/BLU_Phone2.jpg\" class=\"ff-og-image-inserted\"\/><\/div>\n<p>Android phone-maker BLU Products agreed to a proposed settlement on Tuesday with the Federal Trade Commission, over allegations it allowed the third-party firm Adups Technology to collect detailed consumer data from users without their consent.<\/p>\n<p>In an administrative complaint filed earlier this week against BLU and the company\u2019s co-owner and president Samuel Ohev-Zion, the FTC accused the firm of sharing with China-based Adups the full contents of their users\u2019 text messages, real-time cell tower location data, call and text-message logs, contact lists, and applications used and installed on devices.<\/p>\n<p>Ultimately, the <a href=\"https:\/\/www.ftc.gov\/news-events\/press-releases\/2018\/04\/mobile-phone-maker-blu-reaches-settlement-ftc-over-deceptive\">FTC is alleging<\/a> Ohev-Zion and BLU violated the FTC Act\u2019s section pertaining to \u201cdeceptive representation regarding disclosure of personal information.\u201d The proposed settlement will be made final after a 30-day public comment period.<\/p>\n<p>In its <a href=\"https:\/\/www.ftc.gov\/system\/files\/documents\/cases\/1723025_blu_complaint_4-30-18.pdf\">proposed complaint<\/a>, the FTC said Florida-based BLU contracted with Adups to issue security and operating system updates to millions of phones sold by the firm through Amazon, Best Buy and Walmart. In addition to allegedly failing to protect consumer privacy, the FTC asserts that BLU failed \u201cto adequately assess the privacy and security risks of third-party software installed on BLU devices\u201d resulting in \u201ccommon security vulnerabilities that could enable attackers to gain full access to the devices.\u201d<\/p>\n<p>Issues with BLU phones became public <a href=\"https:\/\/threatpost.com\/android-sypware-still-collects-pii-despite-outcry\/127042\/\">in Nov. 2016, when<\/a> security researchers at Kryptowire first reported that several models of BLU phones actively transmitted user and device information to Adups.<\/p>\n<p>Problems allegedly snowballed for BLU from there, according to the FTC.<\/p>\n<p>\u201cBecause pre-installed software on BLU devices contained commonly known security vulnerabilities that, for example, made them susceptible to \u2018command-injection\u2019 attacks\u2026an unknown third party could exploit [these] to gain full access to users\u2019 devices and, among other things, factory-reset a device, take screenshots and video recordings of a device\u2019s screen, and install malicious applications,\u201d the FTC wrote in its proposed complaint.<\/p>\n<p>In a statement to Threatpost in July 2017, Adups said \u201cissues from 2016 have been solved\u201d and moving forward it would \u201conly send completely safe and reliable (firmware over-the-air update) versions to [its] customers.\u201d Yet in October, <a href=\"https:\/\/threatpost.com\/down-the-rabbit-hole-with-a-blu-phone-infection\/128390\/\">Threatpost worked with researchers at Lookout<\/a> to examine a number of BLU phones bought by a Florida-based network administrator James Lockmuller in July 2017.<\/p>\n<p>\u201cAfter 14 days of acting normal, an app called Setting installed itself mysteriously on the handsets, giving itself full permissions over the phones,\u201d Lockmuller said at the time. \u201cThe phone started popping up installers and displaying ads for other apps. I uninstalled Setting and everything else I could. But the apps kept reinstalling themselves.\u201d<\/p>\n<p>According to that forensic analysis, Lookout determined that the culprit behind the mysterious app installs and bombardment of ads was the firmware BLU used, provided by Adups. The firm observed malicious ad components being downloaded silently via Adups\u2019 advertising back-end platform.<\/p>\n<p>The <a href=\"https:\/\/www.ftc.gov\/news-events\/press-releases\/2018\/04\/mobile-phone-maker-blu-reaches-settlement-ftc-over-deceptive\">proposed settlement agreement<\/a> with the FTC does not include any financial penalty or consumer restitution over the alleged issues with affected phones, because in first offense matters such as this, the FTC lacks the power to levy such financial penalties. However, if BLU violated the final FTC settlement order, it could face a civil penalty of up to $41,484 per incident.<\/p>\n<p>The proposed agreement would subject BLU to third-party security assessments every two years for 20 years, as well as require it to maintain compliance-monitoring requirements.<\/p>\n<p>The FTC is inviting the public to\u00a0<a href=\"https:\/\/ftcpublic.commentworks.com\/ftc\/bluproductsconsent\/\"><strong>comment<\/strong><\/a>\u00a0on the settlement reached with BLU up until May 30. At that time, the Commission will decide whether to make it final.<\/p>\n<p>Read More <a href=\"https:\/\/threatpost.com\/phone-maker-blu-settles-with-ftc-over-unauthorized-user-data-extraction\/131679\/\">HERE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Florida-based phone maker BLU is facing an FTC complaint over allegations it shared detailed personal user data with a third-party firm that included full text messages, call logs and contact lists. Read More HERE&#8230;<\/p>\n","protected":false},"author":1,"featured_media":15,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[3],"tags":[30,31,32,33,18,28,29,5,19],"class_list":["post-14","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-threatpost","tag-adups-technology","tag-blu-products","tag-federal-trade-commission","tag-ftc","tag-hacks","tag-malware","tag-mobile-security","tag-privacy","tag-vulnerabilities"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Phone Maker BLU Settles with FTC Over Unauthorized User Data Extraction 2026 | ThreatsHub Cybersecurity News<\/title>\n<meta name=\"description\" content=\"ThreatsHub Cybersecurity News | ThreatsHub.org | Cloud Security &amp; Cyber Threats Analysis Hub. 100% Free OSINT 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