Indian regulators have ordered Alphabet Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL) to disable hundreds of Firebase accounts after linking the platform to a wave of bank-impersonation scams.

Regulatory Action

According to a Reuters report, Indian officials identified a pattern of scammers exploiting Google’s Firebase app and website development platform. The Indian Cyber Crime Coordination Centre (I4C) sent three government notices to Google directing the takedown of at least 57 Firebase-hosted websites and databases in August alone.

The notices cited malware distribution and the theft of sensitive financial data. Seven of the flagged pages mimicked major lenders, including State Bank of India, ICICI Bank, and Axis Bank.

Liability and Context

Google could face liability if flagged links are not removed within three hours, although the notices do not allege wrongdoing by the company itself. Google did not immediately respond to a request for comment.

This regulatory action occurs as bank scams gain prominence globally. Last year, the FBI warned of the “Phantom Hacker” scam, which has drained more than $1 billion from U.S. bank accounts since 2024 by impersonating tech support and financial institutions.

In February, Google committed $15 billion to expand artificial intelligence with a major focus on strengthening digital infrastructure and connectivity in India.

A federal judge has overturned seven economic espionage convictions against former Alphabet Inc. (NASDAQ: GOOGL) software engineer Linwei Ding, ruling that prosecutors failed to prove he intended to benefit the Chinese government.

U.S. District Court Judge Vince Chhabria in San Francisco issued the ruling on Thursday, noting that while the evidence supported Ding’s convictions for stealing trade secrets, it did not meet the higher burden required for economic espionage charges.

Convictions and Sentencing Details

Ding, also known as Leon Ding, was convicted in January following an 11-day trial. The judge’s decision vacates the seven economic espionage counts, each carrying a potential sentence of up to 15 years in prison and a $5 million fine.

However, his seven convictions for stealing trade secrets remain intact. These charges carry a maximum penalty of 10 years in prison and a $250,000 fine per count. Ding is scheduled to be sentenced on Sept. 1.

Allegations and Evidence

Prosecutors accused Ding of stealing thousands of pages of confidential information from Google starting around 2022. The allegedly stolen material included details about the hardware infrastructure and software platforms used to train large AI models.

According to court documents, Ding joined Google in May 2019 and began misappropriating data while being recruited by an early-stage Chinese technology company. His lawyers had sought an acquittal shortly after the trial, arguing that prosecutors did not prove the charges beyond a reasonable doubt.

Market Reaction

Alphabet Class A shares closed at $340.67 on Thursday, down 1.17%, while Class C shares fell 1.02% to close at $338.20. The stock movement reflects broader market sentiment rather than a direct reaction to the legal ruling, as the company’s core business operations remain unaffected.

The Justice Department and Google did not immediately respond to requests for comment regarding the judicial decision.