Kaspersky leaves U.S. market following the ban on the sale of its software in the country

Kaspersky is leaving the U.S. market following the recent ban on the sales of its software imposed by the Commerce Department.

Russian cybersecurity firm Kaspersky announced its exit from the U.S. market following the ban on the sale of its software in the country by the Commerce Department.

In June, the Biden administration announced it will ban the sale of Kaspersky antivirus software due to the risks posed by Russia to U.S. national security. The U.S. government is implementing a new rule leveraging powers established during the Trump administration to ban the sale of Kaspersky software, citing national security risks posed by Russia.

The Commerce Department’s Bureau of Industry and Security banned the Russian cybersecurity firm because it is based in Russia.

Government experts believe that the influence of the Kremlin over the company poses a significant risk,, reported the Reuters. Russia-linked actors can abuse the software’s privileged access to a computer’s systems to steal sensitive information from American computers or spread malware, Commerce Secretary Gina Raimondo said on a briefing call with reporters on Thursday.

“Russia has shown it has the capacity and… the intent to exploit Russian companies like Kaspersky to collect and weaponize the personal information of Americans and that is why we are compelled to take the action that we are taking today,” Raimondo said on the call.

This isn’t the first time that Western governments have banned Kaspersky, but the Russian firm has always denied any link with the Russian government.

Reuters reported that the U.S. government plans to add three units of the cybersecurity company to a trade restriction list. The move will significantly impact the company’s sales in the U.S. and potentially in other Western countries that may adopt similar restrictions against the security firm.

TechCrunch reported that the ban will start on July 20, however, the company’s activities, including software updates to its US customers, will be prohibited on September 29.

“That means your software and services will degrade. That’s why I strongly recommend that you immediately find an alternative to Kaspersky,” Raimondo said. 

Raimondo is inviting Kaspersky’s customers to replace their software, it also explained that U.S. clients who already use Kaspersky’s antivirus are not violating the law.

“Russian cybersecurity firm, Kaspersky Lab, has told workers in its U.S.-based division that they are being laid off this week and that it is closing its U.S. business, according to several sources. The sudden move comes after the U.S. Commerce Department announced last month that it was banning the sale of Kaspersky software in the U.S. beginning July 20. The company has been selling its software here since 2005.” first reported the journalist Kim Zetter from Zero Day. “Kaspersky confirmed the news to Zero Day, saying that beginning July 20 it will “gradually wind down” its U.S. operations and eliminate U.S.-based positions as a result of the new ban, despite initially vowing to fight the ban in court.”

The Russian cybersecurity firm is going to gradually wind down its operations in the United States on July 20, 2024.

“The company has carefully examined and evaluated the impact of the U.S. legal requirements and made this sad and difficult decision as business opportunities in the country are no longer viable,” reads a statement issued by the cybersecurity firm.

It’s unclear how many US employees are impacted by the move, however the company said “it affects less than 50 employees in the U.S.”

Some U.S. workers told Zero Day that are receiving severance packages but declined to provide details about them.

The Department of Homeland Security and the Justice Department announced they will notify U.S. consumers about the ban. They will also set up a website to provide impacted customers with more information about the ban and instructions on the replacement.

The US cybersecurity agency CISA will notify critical infrastructure operators using Kaspersky software to support them in the replacement of the security firm.

In March 2022, the US Federal Communications Commission (FCC) added multiple Kaspersky products and services to its Covered List saying that they pose unacceptable risks to U.S. national security.

The Covered List, published by Public Safety and Homeland Security Bureau published, included products and services that could pose an unacceptable risk to the national security of the United States or the security and safety of United States persons.

In March 2022, the German Federal Office for Information Security agency, aka BSI, also recommended consumers uninstall Kaspersky anti-virus software. The Agency warns the cybersecurity firm could be implicated in hacking attacks during the ongoing Russian invasion of Ukraine.

According to §7 BSI law, the BSI warns against using Kaspersky Antivirus and recommends replacing it asap with defense solutions from other vendors.

The alert pointed out that antivirus software operates with high privileges on machines and if compromised could allow an attacker to take over them. BSI remarks that the trust in the reliability and self-protection of a manufacturer as well as his authentic ability to act is crucial for the safe use of any defense software. The doubts about the reliability of the manufacturer, lead the agency in considering the antivirus protection offered by the vendor risky for the IT infrastructure that uses it.

BSI warns of potential offensive cyber operations that can be conducted with the support of a Russian IT manufacturer, it also explains that the vendor could be forced to conduct attacks or be exploited for espionage purposes without its knowledge.

The United States banned government agencies from using Kaspersky defense solutions since 2017, The company rejected any allegation and also clarified that Russian policies and laws are applied to telecoms and ISPs, not security firms like Kaspersky.

In June 2018, the European Parliament passed a resolution that classifies the security firm’s software as “malicious” due to the alleged link of the company with Russian intelligence.

Some European states, including the UK, the Netherlands, and Lithuania also excluded the software of the Russian firm on sensitive systems.

Pierluigi Paganini

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(SecurityAffairs – hacking, Kaspersky)