Question

Is the strategy of pretexting an acceptable means in order to obtain critical information that will strengthen a company’s internal control system? The following legal advice was obtained on the subject by HP: The committee was then advised by the committee’s outside coun- sel that the use of pretexting at the time of the investigation was not generally unlawful (except with respect to financial institu- tions), but such counsel could not confirm that the techniques employed by the outside consult- ing firm and the party retained by that firm complied in all respects with applicable law.

Answer 1

As per the legal context, definitely pretexting is not illgegal except with respect to financial instutions, brokerage house etc. For one company's internal control system(in this case HP), strengthening can be a valid purpose. But what pretexting technique used and exact data used is always subject to legal aspect and also ethical issue. At the end of the day, it is extensive lying and breaching private data. That's why after a specific scandal by HP, actually pretexting became illegal in many US states. So, ideally even where it's legal, pretexting use should be minimal and purpose, information gathering must comply law.