A small medical testing company in Atlanta is out of business, and the owner is blaming cybersecurity firm Tiversa. He's accusing the company of some seriously shady business tactics, and now there's a Tiversa whistleblower backing up his claims.
In 2008, Tiversa notified LabMD CEO, Michael Daugherty, that his company had a security leak that exposed a data file with more than 9,000 patients on a peer-to-peer network. The problem stemmed from a LabMD employee who installed Limewire file sharing software on his work computer. Tiversa's CEO, Robert Boback, offered to investigate the breach if LabMD hired Tiversa.
Daugherty saw the same conversation as veiled extortion. He believes Tiversa inflated the threat to sell LabMD on the firm’s services, and began retaliating when the medical testing company didn’t bite. Unsure of which employee was using the service, LabMD had trouble getting the file off the network, and Tiversa wasn’t shy about reminding them how serious the issue was.
Ultimatly, LabMD chose not to hire Tiversa. The cybersecurity firm then reported the security violation to the Federal Trade Commission as a potential risk to LabMD customers and violation of state data breach laws. The resulting FTC complaint essentially ended LabMD, though Daugherty is still fighting with the FTC in the courts.