The Russian government can potentially access US data through Kaspersky and put the country’s security at risk, the Commerce Department warned.
Russian cybersecurity company Kaspersky Labs confirmed it intends to shut down all operations in the United States following a government ban imposed last month.
Kaspersky Labs will gradually wind down its U.S. operations and eliminate its U.S.-based positions, the Russian antivirus software maker said on July 15. It did not allow consumers to purchase any products on its website earlier in the day, citing “purchase unavailable for U.S. customers.” New U.S. business for Kaspersky will be blocked 30 days after the restrictions were first announced on June 20.
The decision to ban Kaspersky was made after the Commerce Department determined that the company was subject to Russian government jurisdiction, which forces it to comply with information requests from Moscow. This could lead to personal information stored on devices with the company’s antivirus software getting into the hands of Russian authorities.
Kaspersky was also found to have the power to install malicious software on its customers’ computers or selectively deny updates. This could leave U.S. citizens and U.S. critical infrastructure vulnerable to malware attacks.
Kaspersky said the ban was based on “present geopolitical climate and theoretical concerns” rather than judging the company’s offerings through a comprehensive evaluation. It dismissed accusations that the company is engaged in any activity that threatens the national security of the United States.
On the contrary, Kaspersky “has made significant contributions with its reporting and protection from a variety of threat actors that targeted U.S. interests and allies,” it said.
In 2022, the U.S. Federal Communications Commission added the company’s products to its “List of Communications Equipment and Services that Pose a Threat to National Security.”
Kaspersky Usage in America
According to a July 9 report by cyber-risk management company Bitsight, the tech sector was the leading user of Kaspersky products in the United States, with 27 percent of companies using the company’s offerings. This was followed by the education sector at 10 percent, manufacturing at 8 percent, and business services at 7 percent.
“Interestingly, we observed a number of government and political organizations within the U.S. that appear to be using Kaspersky products, despite the fact that Kaspersky product usage was heavily discouraged in the past years and even prohibited within the U.S. federal government,” the report said.
“In fact, in spite of the federal ban on Kaspersky product usage, we observed multiple U.S. federal government organizations connecting with Kaspersky servers.”
The state where Kaspersky was most prevalent in government agencies was California, followed by New York and Texas, Bitsight stated.
The company noted that the government ban will affect thousands of U.S. customers who would need to shift to another antivirus solution that can be “complex, costly, and disruptive to operations.” This is especially true for larger organizations.
With Kaspersky withdrawing from the U.S. market, those who use the company’s antivirus software could be vulnerable to hackers and newer viruses. Failing to install new, updated antivirus software on time can put company data, including intellectual property, at risk of theft.
The Commerce Department allowed Kaspersky to continue providing antivirus signature updates and codebase updates in the United States until Sept. 29. This is expected to give U.S. businesses and individuals enough time to shift to alternative services.
Kaspersky’s offerings are used by more than 400 million users and 270,000 corporate clients globally.
“Russia has shown time and again they have the capability and intent to exploit Russian companies, like Kaspersky Lab, to collect and weaponize sensitive U.S. information, and we will continue to use every tool at our disposal to safeguard U.S. national security and the American people,” Secretary of Commerce Gina Raimondo said last month.
Reuters contributed to this report.