[HN Gopher] Theranos devices ran "null protocol" to skip actual ...
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       Theranos devices ran "null protocol" to skip actual demo for
       investors
        
       Author : intunderflow
       Score  : 48 points
       Date   : 2021-10-20 21:17 UTC (1 hours ago)
        
 (HTM) web link (arstechnica.com)
 (TXT) w3m dump (arstechnica.com)
        
       | LeifCarrotson wrote:
       | Ads for new phones typically read "Screen images simulated". No
       | one should blame Theranos for using carefully configured images
       | in their marketing brochures - if the graphic designer used
       | actual photos at all instead of CAD renders and simulated
       | screenshots, you'd expect them to clear a fault or get a passing
       | test before hitting the shutter. If there were some machines
       | visible from the front lobby, if they were live and just running
       | "demo mode" that's basically the same as putting a sticker with a
       | passing test over the display.
       | 
       | I give Apple a ton of credit for running with real demos, as
       | shown by the fact that they fail, like the FaceID snafu:
       | 
       | https://www.theverge.com/circuitbreaker/2017/9/12/16296912/a...
       | 
       | Or Steve Jobs' wifi disconnection:
       | 
       | https://www.cnet.com/videos/steve-jobs-demo-fail/
       | 
       | A lot of Apple demos include simulated marketing screen sequences
       | too, but if they had 'lip synced' these parts I don't think
       | anyone would have noticed. Clearly, they didn't, or else those
       | two failures would not have happened.
       | 
       | Regardless, I don't think Theranos running a "null protocol" or
       | "demo mode" is particularly surprising. You can't blame them for
       | wanting to avoid something like the machine blurting out "You Are
       | HIV Positive" during a demo. I do think there's a difference
       | between a marketing demo where you expect to be lied to and a
       | "this is a standard production machine running an actual test"
       | lie. The question is which side of that divide the Theranos
       | investor demos fell on.
        
         | unsui wrote:
         | Fun fact:
         | 
         | Steve Jobs' demo for the original macintosh was actually done
         | with a bit of cheating:
         | 
         | "Once we integrated all the pieces together, the demo didn't
         | come close to be able to run on a standard Macintosh.
         | Fortunately, we had a prototype of a 512K Mac in the lab, so we
         | decided to cheat a little (there were only two in existence at
         | the time) and use that for the demo, which made things fit."
         | 
         | https://www.folklore.org/StoryView.py?project=Macintosh&stor...
        
         | pdabbadabba wrote:
         | I'd have a lot more sympathy for this argument if the Theranos
         | machines were actually capable of doing the tests that they
         | were pretending to run.
         | 
         | I think there's a world of difference between a) simulating a
         | technology that a company really can provide just to ensure
         | that things run smoothly for the test and b) pretending to
         | offer a technology that, in fact, the company couldn't provide
         | at all.
        
         | Zigurd wrote:
         | It depends on what you are demonstrating. I recently worked on
         | a very legit medical device. It has a demo mode that shows off
         | the product UI. It is 100% clear that there is no real sample
         | and no real reagents in the machine.
         | 
         | Note the article said the demo mode "would not analyze the
         | sample." The article goes on to say that real blood samples
         | were used in these demos. Not the same thing at all.
        
       | RyJones wrote:
       | yes? they're a terrible company run by terrible people.
        
         | buitreVirtual wrote:
         | were
        
           | fernandotakai wrote:
           | and thank god for that. can you imagine theranos doing covid
           | tests?
        
             | mhh__ wrote:
             | I won't name names in case I'm wrong but there are
             | apparently some cowboy companies doing exactly this in the
             | UK.
             | 
             | Huge numbers of contracts were outsourced with no review to
             | anyone available (read: nepotism) with a phone number.
        
       | temptemptemp111 wrote:
       | So just as accurate as corona tests.
        
       | [deleted]
        
       | version_five wrote:
       | I don't see any massive red flags in the stuff reported.
       | 
       | I'm convinced based on what I know that Theranos engaged in
       | deliberate fraud. But fraud is more than the sum of promotional
       | practices that can be taken retrospectively or without context as
       | sign of wrongdoing.
       | 
       | Having scripted demos that hide error messages is not really
       | sketchy. It could be part of a fraud, or it could not, but it's
       | not really telling.
       | 
       | I say this because we often see popular ethical judgements where
       | it's made out that there is a clear line between good and bad and
       | that because the key players were unethical, they just did a
       | bunch of bad things. I don't see it that way. There are lots of
       | individual small judgements, most of which could be completely
       | benign, but that add up to a fraud in the bigger picture. It
       | probably makes sense as part of a body of evidence in a trial,
       | but it's not really as sensational as the tabloids would like it
       | to be.
       | 
       | Incidentally, I think that Theranos and Enron are basically the
       | same story (at least Bad Blood and The Smartest Guys in the Room
       | are the same book). And the root cause in both is not direct lack
       | of scruples, but believing that ideas are what's important and
       | execution doesn't matter. The lesson to me, is that a good way to
       | get into trouble you cant get out of (and both of these stories
       | resulted in real people taking their lives) is to think that
       | details don't matter and a good idea is all you need.
        
         | outworlder wrote:
         | Hiding error messages is one thing.
         | 
         | What about showcasing devices that pretended to work but then
         | shipping the tests to be run in normal labs?
        
           | dfsegoat wrote:
           | > What about showcasing devices that pretended to work but
           | then shipping the tests to be run in normal labs?
           | 
           | They didn't even have any basic systems validation / quality
           | management documentation, which is how they racked up their
           | first FDA inspection violations.
           | 
           | This really should have been obvious to anyone doing due
           | diligence in a regulated space (devices, pharma, etc.).
        
           | wolverine876 wrote:
           | While the behavior is atrocious IMHO, the article doesn't say
           | the tests were run in 'normal labs':
           | 
           | > the actual test would be run in a lab away from prying eyes
           | 
           | That lab could have been using a Theranos machine, but with
           | errors displayed, etc.
        
         | hn_throwaway_99 wrote:
         | These kinds of responses infuriate me. I also get so frustrated
         | by so much of the media taking the line of "This was just
         | Silicon Valley's 'Fake it til you make it' culture taken to the
         | extreme."
         | 
         | Nonsense. I've worked in startups my entire 20+ year career,
         | and while we've certainly spun or promoted things to the
         | extreme, the line of "outright lying" was never gray.
         | 
         | Take for example the initial iPhone demo by Steve Jobs. It's
         | been mentioned many times before that the demo had to be run in
         | a specific, exact order, or else the OS would crash. That's
         | fine, but _nothing_ in those demos were faked. It all did
         | exactly what he demoed, live. It would have been a much
         | different story, if, for example, Jobs just demoed a video with
         | surreptitious pause and play buttons. _That_ would have been
         | fraud, and that 's much less than what Theranos faked here.
        
         | goldcd wrote:
         | I think having scripted demos that hide error messages is
         | sketchy, if you're representing the demo as "being your
         | product". You're saying "this is my product" and you're showing
         | something that "isn't your product".
         | 
         | Doesn't mean I'm against demos - but normally you can come up
         | with a slice (or two if you're lucky) through it that genuinely
         | works and shows for a representative scenario (and if your
         | arm's twisted you just say that with more money, you can
         | support more scenarios).
        
         | rtkwe wrote:
         | They were telling investors the tests were actually running on
         | machines though which is factually untrue and were lying in
         | materials sent to investors about the testing done on devices
         | and the validation of those tests. This is far more than just
         | having a narrow slice demo and saying "this is a demo of what X
         | will be like." What they were doing was directly lying about
         | what the machines were doing and what they were capable of
         | doing, beyond just lying to investors they pushed it out to the
         | public using shoddy validation techniques which gave people
         | incorrect test results.
        
         | PragmaticPulp wrote:
         | > Having scripted demos that hide error messages is not really
         | sketchy. It could be part of a fraud, or it could not, but it's
         | not really telling.
         | 
         | They pricked investors fingers and implied that a Theranos
         | machine would process the sample, but then they secretly ran
         | the sample on a competitor's machine in another room:
         | 
         | > In demos of the company's technology, investors would have
         | their fingers pricked for testing alongside one of Theranos'
         | proprietary devices, but the actual test would be run in a lab
         | away from prying eyes.
         | 
         | This would be the equivalent of a SaaS company setting up an
         | API that just passed the calls through to a competitor's API,
         | but then telling investors that their own platform was
         | operational. You can run the pass-through API long enough to
         | fake demos and raise money, but it's still fraud if you mislead
         | investors to believe that you have the platform operational.
         | 
         | They weren't just hiding error messages or smoothing over rough
         | edges. They were architecting fraudulent claims to investors.
        
           | eli wrote:
           | Pretty sure a non-zero number of AI/ML startups were actually
           | just feeding data to humans, at least at the start.
        
             | spaetzleesser wrote:
             | "At least at the start" is possibly ok if you have a path
             | forward to get to your goal. Theranos had no path.
        
         | spaetzleesser wrote:
         | You may do scripted demos or avoiding problematic errors. But
         | usually you will have some kind of path to get where you want
         | to be.
         | 
         | From what I have read Theranos had nothing. They had no idea
         | how they could make their machines work. There was no new
         | technology or new insight. They just lied blatantly.
         | 
         | That's on a different level from the usual cheating people do
         | at demos.
        
       | 1cvmask wrote:
       | The Germans would call this schadenfreude to the founder of Fox
       | News perhaps:
       | 
       | Meanwhile, investors were given binders that made hyperbolic
       | claims about Theranos' diagnostic technology. One binder sent to
       | media tycoon Rupert Murdoch, who invested $125 million, said,
       | "Theranos offers tests with the highest level of accuracy." The
       | company's technology, it also said, "generates significantly
       | higher integrity data than currently possible."
       | 
       | https://en.wikipedia.org/wiki/Schadenfreude
        
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       (page generated 2021-10-20 23:00 UTC)