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Kaspersky To Shut Down U.S. Operations Amid Security Concerns

The sign is seen above the headquarters of Kaspersky Lab in Moscow, Jan. 30, 2017. Beginning July 25, 2024, the cybersecurity firm Kaspersky said it will begin to "gradually wind down" all of i

Cybersecurity firm Kaspersky has announced its decision to cease all operations in the United States following a recent ban imposed by the Commerce Department on the use of its software within the country. The Moscow-based company revealed that it will begin the process of winding down its U.S. operations on July 20, with plans to eliminate positions based in the U.S., affecting fewer than 50 employees.

Kaspersky, which has been operating in the U.S. for nearly two decades, emphasized its contribution to the nation's cybersecurity goals by protecting organizations and individuals from evolving cyber threats. The company cited the impact of U.S. legal requirements as the primary reason for its decision, stating that the business opportunities in the country were no longer viable.

Last month, the Commerce Department implemented a ban on the sale of Kaspersky software in the U.S., citing concerns over the company's Russian connections posing a risk to national security. The department highlighted the potential exploitation of Kaspersky's software to access sensitive data of U.S. citizens, which could be made available to Russian government entities.

Kaspersky has consistently refuted claims of being a security threat, asserting that it cannot intentionally access sensitive data on Americans and that its operations in Russia are limited to aggregate or statistical data. The company criticized the government's decision as being influenced by geopolitical factors rather than verified risks, warning that such actions could benefit cybercriminals and limit consumer choice.

Despite the closure of its U.S. operations, Kaspersky affirmed that its global business remains strong, with a continued focus on protecting customers worldwide from cyber threats. The company's renowned consumer antivirus products and research unit, known for uncovering sophisticated hacking groups, will continue to operate outside the U.S.

The Department of Commerce defended its action against Kaspersky Labs as a necessary measure to address a significant threat to national security, following a thorough investigation of the risks associated with the company's products and services. Kaspersky's objections to the ban were considered but ultimately deemed insufficient to overturn the decision.

As Kaspersky prepares to exit the U.S. market, the cybersecurity landscape is set to undergo changes, with implications for both the company and its American customers.

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