(CNN/Money) A cybersecurity company faked hacks and extorted clients to buy its services, according to an ex-employee.
In a federal court this week, Richard Wallace, a former investigator at cybersecurity company Tiversa, said the company routinely engaged in fraud -- and mafia-style shakedowns.
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To scare potential clients, Tiversa would typically make up fake data breaches, Wallace said. Then it pressured firms to pay up.