UK regulator fines Russian Android malware firm

2012-09-01

Helen Martin

Virus Bulletin, UK

Editor: Helen Martin

Abstract

Russian company fined by UK regulator for distributing apps containing premium rate dialler.

A UK regulatory body has fined a Russian company for distributing Android applications that contained hidden premium rate dialler functionality. PhonepayPlus, the regulatory body for premium rate phone numbers and services in the UK, had received several complaints from members of the public about the app which appeared simply to offer access to various games, but which also sent SMS messages subscribing the phone to an expensive premium rate service without notifying the user of the charges.

PhonepayPlus tracked down the owner of the premium rate numbers to Moscow-based company Connect Ltd. PhonepayPlus said it believed the app had the sole purpose of generating high revenue, doing so via ‘recklessly misleading promotion and design’. The regulatory body issued a fine of £50,000 and ordered Connect Ltd to refund (within three months) all consumers who had used the service.

According to Sophos, consumers are believed to have spent between £100,000 and £250,000 on the service, although it is not known how much revenue the Russian firm made.

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