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In a federal court this week, Richard Wallace, a former investigator at cybersecurity company Tiversa, said the company routinely engaged in fraud — and mafia-style shakedowns.
To scare potential clients, Tiversa would typically make up fake data breaches, Wallace said. Then it pressured firms to pay up.
“Hire us or face the music,” Wallace said on Tuesday at a federal courtroom in Washington, D.C.. CNNMoney obtained a transcript of the hearing.
The results were disastrous for at least one company that stood up to Tiversa and refused to pay.
In 2010, Tiversa scammed LabMD, a cancer testing center in Atlanta, Wallace testified. Wallace said he tapped into LabMD’s computers and pulled the medical records.
