Kaspersky Baned

The Trump administration yesterday, on Wednesday 9/13/2017 told U.S. government agencies to remove Kaspersky Lab products from their networks, saying it was concerned the Moscow-based cyber security firm was vulnerable to Kremlin influence and that using its anti-virus software could jeopardize national security.

The Department of Homeland Security (DHS) issued a directive to federal agencies ordering them to identify Kaspersky products on their information systems within 30 days and begin to discontinue their use within 90 days. The order applies only to civilian government agencies and not the Pentagon, but U.S. intelligence leaders said earlier this year that Kaspersky was already generally not allowed on military networks.

The direct financial impact of the decision will likely be minimal for Kaspersky Lab, one of the world’s leading anti-virus software companies, which was founded in 1997 and now counts over 400 million global customers. Federal contracting databases, show only a few hundred thousand dollars in purchases from Kaspersky. But Kaspersky also sells to federal contractors and third-party software companies that incorporate its technology in their products, so its technology may be more widely used in government than it appears from the contracting databases, U.S. officials say. Also, last week, Best Buy Co (BBY.N), the No.1 U.S. electronics retailer, said it was pulling Kaspersky Lab’s cyber security products from its shelves and website.

Eugene Kaspersky, the company’s co-founder and chief executive, attended a KGB school, and the company has acknowledged doing work for the Russian intelligence agency known as the FSB. But he has adamantly denied charges his company conducts espionage on behalf of the Russian government.