Image by ILO Asia-Pacific, from Flickr

Startup’s ‘AI’ Was a Fraud, Human Labor in Philippines Did the Work

• Written by Kiara Fabbri Former Tech News Writer
• Fact-Checked by Sarah Frazier Former Content Manager

Albert Saniger, founder and former CEO of Nate, a startup that claimed to use AI to power online shopping, has been charged with fraud by U.S. authorities.

In a rush? Here are the quick facts:

• CEO Albert Saniger raised over $50 million from top venture firms.
• DOJ says Nate’s automation rate was nearly zero despite AI claims.
• Investors were left with near-total losses after Nate shut down.

The United States Department of Justice (DOJ) alleges that Saniger misled investors by saying his app was driven by AI when, in reality, it relied on human workers in the Philippines to complete purchases manually.

But according to the DOJ, Nate’s AI system didn’t actually work. Despite hiring data scientists and acquiring some AI tools, the automation rate was “effectively zero percent.” The purchases weren’t completed by AI but by hundreds of Filipino workers in a call center, who were manually handling transactions behind the scenes.

TechCrunch reports that Saniger raised over $50 million for Nate, including a $38 million Series A round in 2021. He told investors the app could function “without human intervention,” with only occasional “edge cases” needing manual help. But those claims, the DOJ says, were false.

“As alleged, Albert Saniger misled investors by exploiting the promise and allure of AI technology to build a false narrative about innovation that never existed,” said Acting U.S. Attorney Matthew Podolsky, as reported by the DOJ.

“This type of deception not only victimizes innocent investors, it diverts capital from legitimate startups, makes investors skeptical of real breakthroughs, and ultimately impedes the progress of AI development,” he added.

FBI Assistant Director Christopher G. Raia added: “Albert Saniger allegedly defrauded investors with fabrications of his company’s purported artificial intelligence capabilities while covertly employing personnel to satisfy the illusion of technological automation.”

The indictment also revealed that Saniger kept the truth from many of his employees by restricting access to automation data and claiming the information was a “trade secret,” as reported by the DOJ. Nate eventually ran out of money and sold off its assets in early 2023, leaving investors with “near total” losses, as reported by TechCrunch.

Saniger, now 35 and based in Barcelona, faces up to 20 years in prison if convicted of securities and wire fraud. He is also being sued in a separate civil case by the U.S. Securities and Exchange Commission.

Image by Yuri Samoilov, from Flickr

Fake Google Play Pages Spread SpyNote Malware To Android Users

• Written by Kiara Fabbri Former Tech News Writer
• Fact-Checked by Sarah Frazier Former Content Manager

A newly discovered Android malware campaign is distributing the powerful SpyNote Remote Access Trojan (RAT) by mimicking Google Play Store pages on deceptive websites.

In a rush? Here are the quick facts:

• Malicious APK downloads start via fake “Install” buttons.
• SpyNote enables spying, data theft, and remote device control.
• Malware abuses Android permissions to avoid detection and removal.

Security researchers at Infosecurity say the campaign uses recently registered domains to trick users into downloading infected apps disguised as popular software.

The fake pages closely resemble genuine Google Play listings, with image carousels, “Install” buttons, and traces of code referencing TikTok’s Android app. When users click to install, malicious JavaScript triggers an automatic download of a booby-trapped APK file.

Once installed, the APK executes a hidden function that drops a second APK containing the core SpyNote payload. This malware connects to command-and-control (C2) servers using hardcoded IP addresses embedded in its code, enabling remote access and surveillance.

SpyNote grants attackers sweeping control over infected devices. Its features include intercepting calls and SMS, accessing contacts, recording phone calls, logging keystrokes, activating the camera and mic, and tracking GPS location.

The malware can also install other apps, lock or wipe devices, and prevent removal by abusing Android’s accessibility services.

“SpyNote is notorious for its persistence, often requiring a factory reset for complete removal,” warned researchers at DomainTools, who uncovered the campaign, as reported by Infosecusiry.

Clues in the malware and delivery infrastructure suggest a possible link to China. The malware contains Chinese-language code and uses Chinese-hosted distribution platforms.

Infosecurity notes that while no definitive attribution has been made, SpyNote has previously been associated with espionage campaigns against Indian defense personnel and with advanced threat groups like APT34 and APT-C-37.

This discovery follows a wave of similar Android-targeted threats, including the recent ToxicPanda malware that targeted banking apps. Security experts recommend avoiding third-party app downloads and relying only on trusted app stores.