US government blacklist Embedi and ERPScan

California-based Cyber Security companies caught in the crossfire between US and Russia

Following the recent cyber-attacks on the US, the Trump Administration has blacklisted tech companies associated with the Russian government. California-based security experts Embedi, and cyber security firm ERPScan are both owned by the Russian company Digital Security and thus found themselves under scrutiny this Monday.

Digital Security has been detected as a threat in the past, and the US Treasury department accused the firm of “providing material and technological support to the FSB”, the Russian Federation Security Service. The US are yet to clarify the ban for the two US tech companies, however, and the official note merely outlines the fact that Embedi and ERPScan are subsidiaries of Digital Security.

Alex Kruglov, Embedi’s Head of Marketing, asserted that the company has “never worked with any government – the Russian or US, or any government.” According to Kruglov, Embedi are a “totally a white hat company.”

The sanction will undoubtedly tarnish the reputations of Embedi and ERPScan, while preventing both firms from trading with any US-based companies. Kruglov added bleakly that Emedi are “not sure” about their “future activity or the future of [their] US office.”

With no real evidence to connect the companies directly to the cyber-attacks, the founder of ERPScan feels wrongly discriminated against. Polyakov Alexander expressed his astonishment to The Register, and said “the only issue is that some of my peers and I were born in Russia. I’m sorry, we can’t change it.”

As the sanctions take full effect, the future brings an unnerving and ambiguous set of problems regarding the fate of ERPScan and Embedi. Alexander asserted that they “will continue helping protect critical SAP and Oracle software from cyberattacks as we did, and it doesn’t matter what has happened.”

1 COMMENT

  1. ERPScan claim that the block will lower competition and innovation in the market. However, there are several players in the market for SAP cybersecurity solutions. All of them have demonstrated a commitment to innovation. Layer Seven Security, for example, have developed an innovative add-on for SAP Solution Manager that support’s threat detection and response and data loss prevention. It also supports vulnerability and patch management for SAP systems. Therefore, there is no reason to believe that the EO will have a negative impact on the market.

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