Shopping App Temu Is 'Dangerous Malware,' Spying On Your Texts, Lawsuit Claims
Published on June 28, 2024 at 01:40AM
An anonymous reader quotes a report from Ars Technica: Temu -- the Chinese shopping app that has rapidly grown so popular in the US that even Amazon is reportedly trying to copy it -- is "dangerous malware" that's secretly monetizing a broad swath of unauthorized user data, Arkansas Attorney General Tim Griffin alleged in a lawsuit (PDF) filed Tuesday. Griffin cited research and media reports exposing Temu's allegedly nefarious design, which "purposely" allows Temu to "gain unrestricted access to a user's phone operating system, including, but not limited to, a user's camera, specific location, contacts, text messages, documents, and other applications." "Temu is designed to make this expansive access undetected, even by sophisticated users," Griffin's complaint said. "Once installed, Temu can recompile itself and change properties, including overriding the data privacy settings users believe they have in place." Griffin fears that Temu is capable of accessing virtually all data on a person's phone, exposing both users and non-users to extreme privacy and security risks. It appears that anyone texting or emailing someone with the shopping app installed risks Temu accessing private data, Griffin's suit claimed, which Temu then allegedly monetizes by selling it to third parties, "profiting at the direct expense" of users' privacy rights. "Compounding" risks is the possibility that Temu's Chinese owners, PDD Holdings, are legally obligated to share data with the Chinese government, the lawsuit said, due to Chinese "laws that mandate secret cooperation with China's intelligence apparatus regardless of any data protection guarantees existing in the United States." Griffin's suit cited an extensive forensic investigation into Temu by Grizzly Research -- which analyzes publicly traded companies to inform investors -- last September. In their report, Grizzly Research alleged that PDD Holdings is a "fraudulent company" and that "Temu is cleverly hidden spyware that poses an urgent security threat to United States national interests." As Griffin sees it, Temu baits users with misleading promises of discounted, quality goods, angling to get access to as much user data as possible by adding addictive features that keep users logged in, like spinning a wheel for deals. Meanwhile hundreds of complaints to the Better Business Bureau showed that Temu's goods are actually low-quality, Griffin alleged, apparently supporting his claim that Temu's end goal isn't to be the world's biggest shopping platform but to steal data. Investigators agreed, the lawsuit said, concluding "we strongly suspect that Temu is already, or intends to, illegally sell stolen data from Western country customers to sustain a business model that is otherwise doomed for failure." Seeking an injunction to stop Temu from allegedly spying on users, Griffin is hoping a jury will find that Temu's alleged practices violated the Arkansas Deceptive Trade Practices Act (ADTPA) and the Arkansas Personal Information Protection Act. If Temu loses, it could be on the hook for $10,000 per violation of the ADTPA and ordered to disgorge profits from data sales and deceptive sales on the app. In a statement to Ars, a Temu spokesperson discredited Grizzly Research's investigation and said that the company was "surprised and disappointed by the Arkansas Attorney General's Office for filing the lawsuit without any independent fact-finding." "The allegations in the lawsuit are based on misinformation circulated online, primarily from a short-seller, and are totally unfounded," Temu's spokesperson said. "We categorically deny the allegations and will vigorously defend ourselves." "We understand that as a new company with an innovative supply chain model, some may misunderstand us at first glance and not welcome us. We are committed to the long-term and believe that scrutiny will ultimately benefit our development. We are confident that our actions and contributions to the community will speak for themselves over time." Last year, Temu was the most downloaded app in the U.S. and has only become more popular as reports of security and privacy risks have come out.
Published on June 28, 2024 at 01:40AM
An anonymous reader quotes a report from Ars Technica: Temu -- the Chinese shopping app that has rapidly grown so popular in the US that even Amazon is reportedly trying to copy it -- is "dangerous malware" that's secretly monetizing a broad swath of unauthorized user data, Arkansas Attorney General Tim Griffin alleged in a lawsuit (PDF) filed Tuesday. Griffin cited research and media reports exposing Temu's allegedly nefarious design, which "purposely" allows Temu to "gain unrestricted access to a user's phone operating system, including, but not limited to, a user's camera, specific location, contacts, text messages, documents, and other applications." "Temu is designed to make this expansive access undetected, even by sophisticated users," Griffin's complaint said. "Once installed, Temu can recompile itself and change properties, including overriding the data privacy settings users believe they have in place." Griffin fears that Temu is capable of accessing virtually all data on a person's phone, exposing both users and non-users to extreme privacy and security risks. It appears that anyone texting or emailing someone with the shopping app installed risks Temu accessing private data, Griffin's suit claimed, which Temu then allegedly monetizes by selling it to third parties, "profiting at the direct expense" of users' privacy rights. "Compounding" risks is the possibility that Temu's Chinese owners, PDD Holdings, are legally obligated to share data with the Chinese government, the lawsuit said, due to Chinese "laws that mandate secret cooperation with China's intelligence apparatus regardless of any data protection guarantees existing in the United States." Griffin's suit cited an extensive forensic investigation into Temu by Grizzly Research -- which analyzes publicly traded companies to inform investors -- last September. In their report, Grizzly Research alleged that PDD Holdings is a "fraudulent company" and that "Temu is cleverly hidden spyware that poses an urgent security threat to United States national interests." As Griffin sees it, Temu baits users with misleading promises of discounted, quality goods, angling to get access to as much user data as possible by adding addictive features that keep users logged in, like spinning a wheel for deals. Meanwhile hundreds of complaints to the Better Business Bureau showed that Temu's goods are actually low-quality, Griffin alleged, apparently supporting his claim that Temu's end goal isn't to be the world's biggest shopping platform but to steal data. Investigators agreed, the lawsuit said, concluding "we strongly suspect that Temu is already, or intends to, illegally sell stolen data from Western country customers to sustain a business model that is otherwise doomed for failure." Seeking an injunction to stop Temu from allegedly spying on users, Griffin is hoping a jury will find that Temu's alleged practices violated the Arkansas Deceptive Trade Practices Act (ADTPA) and the Arkansas Personal Information Protection Act. If Temu loses, it could be on the hook for $10,000 per violation of the ADTPA and ordered to disgorge profits from data sales and deceptive sales on the app. In a statement to Ars, a Temu spokesperson discredited Grizzly Research's investigation and said that the company was "surprised and disappointed by the Arkansas Attorney General's Office for filing the lawsuit without any independent fact-finding." "The allegations in the lawsuit are based on misinformation circulated online, primarily from a short-seller, and are totally unfounded," Temu's spokesperson said. "We categorically deny the allegations and will vigorously defend ourselves." "We understand that as a new company with an innovative supply chain model, some may misunderstand us at first glance and not welcome us. We are committed to the long-term and believe that scrutiny will ultimately benefit our development. We are confident that our actions and contributions to the community will speak for themselves over time." Last year, Temu was the most downloaded app in the U.S. and has only become more popular as reports of security and privacy risks have come out.
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