In another victory for the security of New Jersey residents’ computers and mobile devices, the New Jersey Division of Consumer Affairs has joined with the Federal Trade Commission in a settlement with the makers of “Prized,” a mobile app that allegedly hacked Android smartphones and/or tablets with harmful malware.
Specifically, the State and the FTC allege that consumers who downloaded Prized onto their devices were also unwittingly downloading malicious software that infected their devices and caused them to “mine” for virtual currencies such as Litecoin, Dogecoin, and Quarkcoin.
But the “mining” process – which is highly strenuous on computers and even more so for smartphones and tablets – allegedly harmed the owners of the infected devices, and had the potential to leave the devices barely functional. The smartphone and tablet owners faced the possibility of increased costs for electricity and data usage; shortened life spans for their devices; and money, time, and effort involved in removing the malware.
The defendants in this matter, Ohio-based app developer Equiliv Investments and Ryan Ramminger, offered the Prized app through websites such as the Google Play and Amazon app stores.
The Division and the FTC today obtained a settlement with Equiliv Investments and Ramminger in the U.S. District Court, District of New Jersey, in which the defendants are prohibited from marketing or selling products that function as malware, and from using misrepresentations in the sale or advertisement of software products.
In addition, the defendants must, for the next 20 years, regularly provide the Division and the FTC with financial, personnel, and other records intended to help ensure their full compliance with the terms of the settlement as well as with the Federal Trade Act and Consumer Fraud Act.
The defendants also must pay $5,200 to reimburse the State of New Jersey’s investigative and legal costs. An additional $44,800 payment will be suspended and vacated within three years, provided the defendants comply with the full terms of the Order.
The defendants have removed the Prized app from the Google Play and Amazon App online stores, from Equiliv’s website, and from all third-party app stores. The app is no longer available for download.
Consumers who believe they have been cheated or scammed by a business, or suspect any other form of consumer abuse, can file a complaint with the State Division of Consumer Affairs by visiting its website or by calling 1-800-242-5846(toll free within New Jersey) or 973-504-6200.