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The U.S. Federal Trade Commission has reached a settlement with CyberSpy Software, LLC, of Orlando, Fla., that requires that company to rewrite its keylogging software to give warning when it is being installed on a computer and stop a number of illegal practices.

The FTC in 2008 brought an action against CyberSpy that advertised its product as a “100% undetectable” way to “Spy on Anyone. From Anywhere.” The company provided the software to customers with instructions on how to send it to a victim disguised as another file which would secretly install the application. RemoteSpy then monitored key strokes and sent the information to a web site where the customer could download it.

According to the FTC: “The final Order bars the defendants from providing purchasers with the means to disguise the product as an innocent file or e-mail attachment. It also requires that they inform purchasers that improper use of the software may violate state or federal law. The final Order also requires the defendants to take measures to reduce the risk that their spyware is misused, encrypt data transmitted over the Internet, police their affiliates to ensure they comply with the order, and remove legacy versions of the software from computers on which it was previously installed.”

The order was entered in the U.S. District Court for the Middle District of Florida.

FTC news release here.

RemoteSpy has been in VIPRE detections since 2005. It can log chat conversations, keystrokes, website visited, application usage, windows viewed and documents opened

Tom Kelchner