Following an investigation by the FBI: the dual that leads the declines in Tel Aviv

According to reports in the US, the FBI is investigating whether Alarmum’s subsidiary, NetNut, was involved in connecting private people’s home Internet devices without their consent to a network that people use to mask their location. Following the report, the company’s stock crashed in late trading by about 39%.

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Balarum did not comment on the details of the investigation, but stated that the company “takes the matter seriously and will fully cooperate with the law enforcement authorities, to ensure that any misuse of its infrastructure will be thoroughly investigated and those responsible will be brought to justice.”

The focus of the investigation is the company’s flagship product, which allows organizations and companies to collect data and information from the Internet, through proxy networks (Residential Proxies). These allow companies to access websites while it seems that they are browsing from a different location than where they are. Which allows for example businesses to customize their websites for different regions, or alternatively be used by sports fans to watch games that are not available where they are.

For more than a year, FBI agents have reportedly been looking into potential links between NetNut, which sells access to such networks, and software known as Popa, which is allegedly used to take over people’s devices.

In a statement issued by the US Department of Justice last night, it was stated that the FBI seized several Internet domains as part of a “coordinated law enforcement effort that focused on the infrastructure related to NetNut’s proxy platforms, its administrators and its users.”

Alarmum today deals in the field of data and defines itself as “a global provider of internet access solutions and online data collection”. The company helps its customers collect data and information from the Internet, while bypassing the restrictions imposed by some websites, based on the user’s IP address, and the different information they present to people depending on the address from which they browse.

“Organizations that want to collect data on a high scale are vulnerable to blocking or deception, so they must use the IPPN system, which allows them access to the Internet from many points they choose and from different IP addresses that preserve anonymity,” Alarmum CEO Shahar Daniel said in an interview with Globes about two years ago. “In fact, they are hidden behind our platform. We have thousands of servers with full geographic coverage. A customer enters our product online, defines what interests him, in what volume of data, and works continuously.”

The cyber company that changed direction

But the company did not always operate in the field in question, it is at the center of the investigation by the American authorities. In the past, the company was called Safe-T and it dealt in the field of cyber security, when it developed software solutions for the secure transfer of data and access to information in the organization. It entered the Tel Aviv Stock Exchange during 2016, “through the back door”. A few months earlier, she tried to issue her shares, but the low demand she received, of only a few million shekels, led to the cancellation of the move.

Later, it was merged into the skeleton of Boursay (a public company without business activity) at a value of about NIS 100 million, which was tens of percent lower than the amount at which it wanted to issue its shares to the public. Two years after it started trading in Tel Aviv, and when its market value hovered around NIS 45 million only, it made a small offering on Nasdaq and started trading there as well.

However, due to difficulties in presenting profitability, and a competitive market, Alarmum’s management chose to change direction. “We decided to make acquisitions that would expand the product portfolio and put us into less crowded markets with more potential, in order to grow revenues and move toward balance. We did serious research and reached the data field,” said the company’s CEO in an interview two years ago.

“In 2019, we bought the company NetNut, which was full of talent and at the beginning of its journey, with revenues of 2 million dollars a year, losing money and requiring additional investment. We recognized that we had a ‘super star’, when after a large investment we made in infrastructure and stabilization its revenues increased significantly. We saw the potential and in mid-2023 we made the most significant decision – to clean the company of its activities and focus on Netnut. We took the the talents from the other two companies and we changed the name to Alarmum.”

Alarmum ended the year 2025 with revenues of $40.7 million, a 28% increase compared to the figure recorded in 2024. Bottom line, the net profit for the period was about $1 million, a decrease of about 83% compared to $5.8 million the year before. The erosion in profit was attributed by the company mainly to an increase in R&D expenses.

The company’s response: “On July 2, 2026, Alarmum and its subsidiary, NetNut, learned of the seizure of some of its domains by the FBI. Alarmum takes this matter seriously and will cooperate fully with law enforcement authorities to ensure that any misuse of its infrastructure is thoroughly investigated and that those responsible are brought to justice.”