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A report by Reuters says that Yahoo developed software to scan hundreds of millions of Yahoo email accounts at the request of the National Security Agency and the FBI.
The company allegedly searched for specific sets of characters, phrases, or an email attachment in incoming emails and delivered the information to government officials. According to Reuters, it isn't clear what the agencies were looking for and they had reached out to other email providers. In 2007, Yahoo had fought a FISA (which stands for Foreign Intelligence Surveillance Act) request to conduct searches on specific email accounts unless the agencies obtained a warrant.
It's another complication for the troubled company. Last month, Yahoo admitted that over 500 million accounts were part of a foreign backed data breach back in 2014. In July, Verizon agreed to buy Yahoo for $4.8 billion.
Kim Zetter, a journalist and author who has been covering cyber security for more than a decade, cautions the story is still unfolding.