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Just to play the devil's advocate: if a software company tells you your data is secure and then someone hacks their server and steals your photos and personal d
by pyman 1y ago
Just to play the devil's advocate: if a software company tells you your data is secure and then someone hacks their server and steals your photos and personal data, did their CEO and marketing department oversell their level of security? Is this fraud as well?
- aprilthird2021 1y ago"Your data is secure" is known to never be 100%. But what assessments and technology they say they use for security needs to be followed. And if it's found out that those are lies, then it's fraud. Kind of like how these guys lied about the volume of sales they had. Textbook fraud. They aren't in trouble for saying "AI is going to be great"
- pyman 1y agoI agree. But using the "your data is secure" analogy, BuilderAI never actually told customers that development was done using AI, that's something people made up. If you look at their website (builder.ai) they explain that their virtual assistant "Natasha" assigns a developer (I assume from India). That part doesn’t sound like fraud to me, and it's the part everyone seems to be focusing on. The company went into insolvency because the CEO and CFO were misleading investors by significantly inflating sales figures through questionable financial practices. According to the Financial Times, the Indian founders and accountants reportedly engaged in round-tripping with VerSe Innovation. That raised red flags for investors, regulators, and prosecutors, and led to bankruptcy proceedings.