FTC Rejects Bid to Lift Surveillance Ban on Spyware Founder Scott Zuckerman

The U.S. Federal Trade Commission has declined spyware entrepreneur Scott Zuckerman’s request to lift a long-standing prohibition preventing him from participating in the surveillance software industry. The decision revives a case that became emblematic of the wider dangers posed by stalkerware—an ecosystem frequently linked to privacy abuses, cybersecurity failures and hidden monitoring of unsuspecting victims.

A Founder Blocked From Returning to the Surveillance Market

Zuckerman, who previously ran the spyware operations Support King, SpyFone, and OneClickMonitor, has been barred since 2021 from creating or promoting surveillance tools. That order followed a series of breaches that exposed highly sensitive data including photos, messages, passwords, location logs and audio recordings harvested from infected phones.

In his recent petition, Zuckerman argued that he should be allowed to return to the industry, claiming the compliance obligations had become too costly and burdensome. But the FTC rejected his appeal, stating the risks of allowing him back into the market were “substantial and ongoing.”

The commission cited the extensive data exposure suffered under his earlier companies and warned that lifting the ban could put more individuals at risk of covert digital surveillance.

Years of Data Breaches Created the Foundation for the Ban

Stalkerware companies have long been criticized for poor security practices, and Zuckerman’s businesses were among the most notorious. Investigators discovered exposed cloud servers containing thousands of images, messages and identifiers from compromised devices. These issues persisted even after warnings from cybersecurity researchers.

Regulators described the company’s operations as opaque, insecure and dangerous, noting that the apps were designed to remain hidden from the people being monitored—while remaining fully visible to hackers.

Those findings led to the 2021 FTC ruling mandating that Zuckerman delete unlawfully collected data, cease involvement in the surveillance industry and subject his future businesses to independent audits.

New Concerns Emerge Despite Earlier Penalties

Despite being barred from the industry, new evidence surfaced that Zuckerman may have maintained indirect links to another stalkerware platform, SpyTrac, shortly after the ban came into effect. Investigators examining leaked data found records associated with SpyFone—data that should have been permanently deleted—as well as access credentials tied to other surveillance tools.

These revelations raised questions about whether individuals banned from the sector can still operate behind shell companies or through intermediaries, prompting advocacy groups to warn that oversight gaps remain significant.

Regulators Unconvinced by Arguments of Financial Burden

In his petition, Zuckerman claimed he now focuses on ventures unrelated to surveillance—such as hospitality and tourism—and that ongoing audits and restrictions were financially damaging. The FTC remained unmoved, clarifying that the purpose of the ban is not punitive but preventive, rooted in extensive evidence of past misconduct and the threat of recurrence.

Privacy advocates say the rejection reinforces the need for stronger accountability, noting that stalkerware remains one of the least regulated yet most invasive forms of consumer technology.

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