U.S. tech giant Alphabet (GOOGL)-owned Google has taken the fight to a gang of Chinese-based cybercriminals putting 100 million American credit-card holders at risk.
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Triad Warning
Google is filing a federal lawsuit against a network of foreign criminals based in China known in cyber circles as the ‘Smishing Triad’. They are allegedly using a smishing and phishing-as-a-service kit called “Lighthouse” which is responsible for launching massive text-message phishing attacks.
The texts apparently look legitimate warning recipients of a “stuck package” or an unpaid toll, but in reality they are scams designed to get people to reveal personal and sensitive information.
“These scammers ended up compromising anywhere from 15 million to 100 million potential credit cards within the U.S. and impacted, at our current estimates, over a million victims across 120 countries” Google’s general counsel, Halimah DeLaine Prado, said. “They were preying on users’ trust in reputable brands such as E-Z Pass, the U.S. Postal Service and even us as Google.”
Google said it found more than 100 fake website templates generated by Lighthouse using its logo and branding on sign-in screens to trick people into handing over passwords or credit card numbers.
Crime Rings
The lawsuit is being filed under the Racketeer Influenced and Corrupt Organizations (RICO) Act, the Lanham Act, and the Computer Fraud and Abuse (CFAA) Act and is seeking to dismantle the group and the “Lighthouse” platform. RICO is more typically used to take down organized crime rings or as a favorite tool of President Trump.
DeLaine Prado said the lawsuit is not meant specifically to help victims recover any losses, but rather to serve as a “deterrent for future criminals to create similar enterprises.”
An estimated 600 million people each year fall victim to scams with phone calls and texts being the most common method.
It can also impact the reputation of a business. It is why legal and regulatory issues and ability to sell are key risks for Google – see above. This is something investors need to consider when adding tech stocks to their portfolio.
Is GOOGL a Good Stock to Buy Now?
On TipRanks, GOOGL has a Strong Buy consensus based on 30 Buy and 7 Hold ratings. Its highest price target is $350. GOOGL stock’s consensus price target is $312.29, implying a 7.20% upside.
