Scamnetic Drops Trade Secret Claims Against BlackCloak

Scamnetic will instead focus on false advertising allegations against its identity verification competitor.

Published on Feb. 25, 2026

Got story updates? Submit your updates here. ›

Scamnetic, Inc. has announced it is dropping its trade secret claims against BlackCloak and will instead focus on expanded allegations of false advertising. The decision follows comprehensive document and testimonial discovery from BlackCloak executives, which revealed a stark contrast between BlackCloak's identity product offering and Scamnetic's own market-leading identity verification platform, IDeveryone.

Why it matters

This legal dispute highlights the competitive landscape in the identity verification technology market, where companies are vying to provide consumers with tools to protect against online scams and fraud. The outcome could impact consumer trust and adoption of these types of identity verification solutions.

The details

Scamnetic's proposed amended complaint alleges that BlackCloak's identity product does not function as publicly claimed, in violation of the Lanham Act and the Florida Deceptive and Unfair Trade Practices Act. Scamnetic cites specific misrepresentations BlackCloak has made and continues to make about its product's capabilities. IDeveryone is Scamnetic's innovative identity verification solution, designed to help consumers securely confirm the identities of unknown individuals online.

  • Scamnetic announced the decision to drop its trade secret claims and focus on false advertising allegations on February 19, 2026.

The players

Scamnetic, Inc.

A company that provides identity verification solutions to help consumers protect themselves from online scams and fraud.

BlackCloak

A competitor of Scamnetic that offers an identity verification product, which Scamnetic alleges makes false claims about its capabilities.

Al Pascual

The CEO and co-founder of Scamnetic.

IDeveryone

Scamnetic's innovative identity verification solution designed to help consumers securely confirm the identities of unknown individuals online.

Got photos? Submit your photos here. ›

What they’re saying

“Our mission remains steadfast: to provide real identity-verification tools that help everyday people guard against scammers.”

— Al Pascual, CEO and co-founder of Scamnetic (BusinessWire)

What’s next

Scamnetic's proposed amended complaint alleging false advertising claims against BlackCloak will now move forward in the legal process.

The takeaway

This dispute highlights the importance of accurate and transparent claims in the identity verification technology market, as consumers increasingly rely on these tools to protect themselves from online fraud and scams.