Ubiquiti Files Case Against Security Blogger Krebs Over 'False Accusations'

In March of 2021 the Krebs on Security blog reported that Ubiquiti, "a major vendor of cloud-enabled Internet of Things devices," had disclosed a breach exposing customer account credentials. But Krebs added that a company source "alleges" that Ubiquiti was downplaying the severity of the incident - which is not true, says Ubiquiti. Krebs' original post now includes an update - putting the word "breach" in quotation marks, and noting that actually a former Ubiquiti developer had been indicted for the incident...and also for trying to extort the company. It was that extortionist, Ubiquiti says, who'd "alleged" they were downplaying the incident (which the extortionist had actually caused themselves). Ubiquiti is now suing Krebs, "alleging that he falsely accused the company of 'covering up' a cyberattack," ITWire reports:In its complaint, Ubiquiti said contrary to what Krebs had reported, the company had promptly notified its clients about the attack and instructed them to take additional security precautions to protect their information. "Ubiquiti then notified the public in the next filing it made with the SEC. But Krebs intentionally disregarded these facts to target Ubiquiti and increase ad revenue by driving traffic to his website, www.KrebsOnSecurity.com," the complaint alleged. It said there was no evidence to support Krebs' claims and only one source, [the indicted former employee] Nickolas Sharp.... According to the indictment issued by the Department of Justice against Sharp in December 2021, after publication of the articles in question on 30 and 31 March, Ubiquiti's stock price fell by about 20% and the company lost more than US$4 billion (A$5.32 billion) in market capitalisation.... The complaint alleged Krebs had intentionally misrepresented the truth because he had a financial incentive to do so, adding, "His entire business model is premised on publishing stories that conform to this narrative...." "Through its investigation, Ubiquiti learned that Sharp had used his administrative access codes (which Ubiquiti provided to him as part of his employment) to download gigabytes of data. Sharp used a Virtual Private Network (VPN) to mask his online activity, and he also altered log retention policies and related files to conceal his wrongful actions," the complaint alleged. "Ubiquiti shared this information with federal authorities and the company assisted the FBI's investigation into Sharp's blackmail attempt. The federal investigation culminated with the FBI executing a search warrant on Sharp's home on 24 March 2021." The complaint then went into detail about how Sharp contacted Krebs and how the story came to be published. Krebs was accused of two counts of defamation, with Ubiquiti seeking a jury trial and asking for a judgment against him that awarded compensatory damages of more than US$75,000, punitive damages of US$350,000, all expenses and costs including lawyers' fees and any further relief deemed appropriate by the court. Krebs' follow-up post in December had included more details:Investigators say they were able to tie the downloads to Sharp and his work-issued laptop because his Internet connection briefly failed on several occasions while he was downloading the Ubiquiti data. Those outages were enough to prevent Sharp's Surfshark VPN connection from functioning properly - thus exposing his Internet address as the source of the downloads... Several days after the FBI executed its search warrant, Sharp "caused false or misleading news stories to be published about the incident," prosecutors say. Among the claims made in those news stories was that Ubiquiti had neglected to keep access logs that would allow the company to understand the full scope of the intrusion. In reality, the indictment alleges, Sharp had shortened to one day the amount of time Ubiquiti's systems kept certain logs of user activity in AWS. Thanks to Slashdot reader juul_advocate for sharing the story...

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