Chinese Antivirus Firm NQ is Unsafe, Massive Fraud

[Ink]

Read more: Chinese Antivirus Firm NQ Called 'Massive Fraud'
Mobile anti-malware software developer NQ Mobile denies charges that it inflates its market share and makes spyware.

Report by MuddyWaters Research

"Our research estimates that NQ's real market share in China is only about 1.5%, versus the approximately 55% it reports," the report said. "We estimate that its China paying user base is less than 250,000, versus the 6 million NQ claims."

Adding fuel to the fire, the Los Angeles-based research firm said "top-flight security software engineers" that it hired to review NQ Mobile's antivirus software reported that it posed an information security and privacy risk to users. "NQ's Antivirus 7.0 is unsafe for sale to consumers, and we consider it to be spyware that makes users' phones vulnerable to cyber attack," it said. "Phones are vulnerable to MITM [man-in-the-middle] attacks because NQ fails to adhere to basic security protocols."

 

[isuru1]

Thanks for share

 

[aztony]

Chinese Antivirus Firm NQ Called 'Massive Fraud'

If true NQ would be one in a steady parade of numerous Chinese companies listed on American stock exchanges that have fleeced/defrauded investors with the fraudulent and misleading information these companies provide to the SEC. Been a victim myself with a coal company (PUDA) I invested in. The CEO sold the company out from under its shareholders and pocketed the money, while disclosure documents given to auditors and the SEC were fraudulent. All American investors were screwed, left holding worthless shares. That's why I am as leery about investing in Chinese stocks now, as I am in putting one of their AVs on my systems.

 

[Moose]

Thanks for your insight!

 

[aztony]

Additional cautionary info to shareholders and would be investors:
http://seekingalpha.com/article/1778362-nq-mobile-using-sino-forest-tactics-to-delay-the-inevitable?source=yahoo

 

[cruelsister]

NQ (Netquin) isn't really an AV firm as such, but a cellular company. The research firm, Muddy Waters, provides stock analysis to their clients, some really good, some not so much. The company did have a BIG press release about how they would have the China mobile security market sewed up, but with Qihoo, Tencent, and Baidu all there already this wasn't taken very seriously.

And if you would like to check out a CCTV (with English Subtitles) NQ business practices (this pertains to an installed trojan, so is appropriate for MalwareTips!):

CCTV video

(Just noticed this was the same link as Post 1, but needs repetition).