The Secure Times

An online forum of the ABA Section of Antitrust Law's Privacy and Information Security Committee

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Allegation that payment processing software installed “spyware” states claim under federal and New Jersey Computer Fraud Statutes

An allegation that payment processing software installed unauthorized "spyware" on the purchaser’s server that diverted confidential customer data to the software developer makes out a claim under the federal and New Jersey computer fraud statutes. Slim CD, Inc. v. Heartland Payment Systems, Inc., No. 3:06cv2256, 2007 U.S. Dist. LEXIS 62536 (D. N.J. Aug. 24, 2007). The district court declined to dismiss the software purchaser’s claims under the New Jersey statute, rejecting the developer’s argument that the statute required a showing of how the developer had used the diverted information for its own benefit. The court also ruled that the purchaser had properly alleged damages in excess of $5,000 within one year under the federal computer fraud statute.