Alarum Technologies Under Investigation for Securities Fraud
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 13 hours ago
0mins
Source: Globenewswire
- Investigation Launched: Pomerantz LLP is investigating whether Alarum Technologies and its executives engaged in securities fraud or other unlawful business practices, which could undermine investor confidence and lead to stock price volatility.
- FBI Involvement: According to Bloomberg, the FBI is probing whether Alarum's subsidiary NetNut linked customers' home internet devices without consent, potentially exposing the company to legal liabilities.
- Stock Price Plunge: Following the investigation news, Alarum's American Depositary Receipts (ADRs) fell by $4.96, or 61.85%, over two trading sessions, closing at $3.06, indicating extreme market pessimism regarding the company's outlook.
- Legal Consequences: This investigation could result in significant legal and financial risks for Alarum, impacting its future operations and investor trust, potentially leading to substantial damages payouts.
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Analyst Views on ALAR
Wall Street analysts forecast ALAR stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 3.080
Low
20.00
Averages
23.50
High
27.00
Current: 3.080
Low
20.00
Averages
23.50
High
27.00
About ALAR
Alarum Technologies Ltd, formerly known as Safe-T Group Ltd, is an Israel-based company engaged primarily in the provision of data collection software for enterprises. The Company operates two business segments: the Enterprise Internet Access and Web Data Collection segment and the Consumer Internet Access Solutions and Services segment. In the Enterprise Internet Access and Web Data Collection segment, the Company offers a Web Data Collection Service for enterprises that is based on the Company's proxy traffic optimization and routing technology, as well as partnership agreements with Internet providers. In the Consumer Internet Access Solutions and Services segment, the Company offers secured and encrypted connections for individual customers. The Company operates on a Software as a Service (SaaS) business model, offering its software on a fee basis.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Investigation Launched: Pomerantz LLP is investigating whether Alarum Technologies and its executives engaged in securities fraud or other unlawful business practices, which could undermine investor confidence and lead to stock price volatility.
- FBI Involvement: According to Bloomberg, the FBI is probing whether Alarum's subsidiary NetNut linked customers' home internet devices without consent, potentially exposing the company to legal liabilities.
- Stock Price Plunge: Following the investigation news, Alarum's American Depositary Receipts (ADRs) fell by $4.96, or 61.85%, over two trading sessions, closing at $3.06, indicating extreme market pessimism regarding the company's outlook.
- Legal Consequences: This investigation could result in significant legal and financial risks for Alarum, impacting its future operations and investor trust, potentially leading to substantial damages payouts.
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- Stock Price Collapse: Following Google's disabling of accounts linked to Alarum's subsidiary NetNut due to alleged malicious online activities, Alarum's stock plummeted by 20.81% to $6.35 on July 2, 2026, with unusually high trading volume indicating severe market concern about the company's future.
- FBI Investigation Revealed: On July 2, 2026, Bloomberg reported that the FBI had seized multiple internet domains associated with NetNut, revealing that the investigation had been ongoing for over a year, which heightened investor anxiety regarding the company's compliance and operations.
- Investor Losses Worsen: Following the FBI report, Alarum's stock fell another 51.5% to $3.08 on July 6, 2026, exacerbating investor losses and reflecting a significant loss of confidence in the company's future prospects.
- Legal Consultation Opportunity: The Law Offices of Howard G. Smith are offering legal consultations for Alarum investors, encouraging affected investors to reach out for potential claims, indicating that legal action may be a crucial avenue for protecting investor rights.
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- Security Incident Response: Following security incidents reported on July 2 and 3, 2026, Alarum Technologies has decided to temporarily pause certain NetNut Ltd. network services to ensure infrastructure integrity and assess any potential malicious activity.
- Stock Price Plunge: The disclosure of these security incidents led to a stock price drop of over 38% on Nasdaq and more than 70% on the Tel Aviv Stock Exchange, indicating severe market concerns regarding the company's security management capabilities.
- Reduced Service Availability: The company has stated that users should expect significantly reduced service availability during this pause, which is deemed the
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- Investigation Update: Alarum Technologies is investigating an incident affecting NetNut Ltd's network and has decided to pause relevant network services for several days to conduct a thorough investigation, ensuring the safety and reliability of its services.
- Reduced Service Availability: The temporary pause in network traffic will significantly reduce the availability of Alarum's services, which may negatively impact the company's operations and financial results as it assesses the affected infrastructure and determines if any malicious activity occurred.
- Resource Allocation: The company is dedicating substantial technical and operational resources to support the investigation and recovery process, indicating the seriousness with which it is treating the incident and its commitment to restoring normal operations as quickly as possible to minimize customer impact.
- Future Outlook: Alarum will continue to evaluate the situation and provide updates as appropriate; while the company remains cautious about the timeline for service restoration and the specific impacts, it is striving to ensure transparency and maintain customer trust.
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- Coordinated Action: Google, in collaboration with the FBI and Lumen, successfully disrupted NetNut's residential proxy service and the Popa botnet, demonstrating the company's proactive stance in cybersecurity aimed at protecting users from malicious traffic.
- Network Degradation: The operation caused significant damage to NetNut's proxy network and business operations, reducing the available device pool by millions, indicating Google's determination and capability in combating malicious online activities.
- Ongoing Efforts: This action follows Google's January 2026 disruption of the IPIDEA proxy network, reflecting the company's long-term strategy to dismantle residential proxy systems that conceal malicious web traffic.
- Legal Cooperation: NetNut's parent company, Alarum Technologies, stated it will cooperate with law enforcement to investigate any misuse of its infrastructure, highlighting the company's commitment to legal compliance and cybersecurity.
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- Service Disruptions: Alarum Technologies and its subsidiary NetNut are experiencing service disruptions due to the FBI's seizure of multiple associated domains, which, if prolonged, could materially adversely affect the company's operations and financial results.
- Resource Allocation for Investigation: The company is devoting substantial resources to investigate the incident and analyze whether its network has been used for malicious or unlawful purposes by third parties, demonstrating its commitment to addressing the issue and maintaining customer service.
- No Formal Contact Received: As of now, neither Alarum nor NetNut has been formally contacted by the FBI or any other governmental authority, indicating that the company's legal standing in this matter remains unclear, which could impact its future compliance and operations.
- Risks in Forward-Looking Statements: The company's forward-looking statements highlight various risks and uncertainties regarding the duration and impact of service disruptions, suggesting that actual results may differ significantly from expectations, thereby increasing investor anxiety.
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