NSO Group Technologies

URL https://Persagen.com/docs/nso_group.html
Sources Persagen.com  |  Wikipedia  |  other sources (cited in situ)
Source URL https://en.wikipedia.org/wiki/NSO_Group
Date published 2021-11-08
Curation date 2021-11-08
Curator Dr. Victoria A. Stuart, Ph.D.
Modified
Editorial practice Refer here  |  Date format: yyyy-mm-dd
Summary NSO Group Technologies (NSO standing for Niv, Shalev and Omri, the names of the company's founders) is an Israeli technology firm primarily known for its proprietary Pegasus spyware, which is capable of remote zero-click
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NSO Group Technologies Ltd.
nso-group-logo3.png
Name NSO Group Technologies Ltd.
Abbreviation NSO
Founded 2010
Founders
Type Privately held company
Industry Technology
Location Israel
Headquarters Tel Aviv, Israel
Areas served Global
CEO Shalev Hulio  (see also)
Board of Directors website  |  Archive.org  |  local copy
Known for
  • Pegasus spyware
  • spying on politicians, journalists,
    human rights groups
Products Pegasus spyware
Owners
Website NSOGroup.com
Contents

Background

NSO Group Technologies (NSO standing for Niv, Shalev and Omri, names of company's founders) is an Israeli technology firm known for its proprietary spyware   Pegasus spyware, which is capable of remote zero-click surveillance of smartphones. It was founded in 2010 by Niv Karmi  [also known as: Niv Carmi],   Omri Lavie   [see also], and Shalev Hulio  [see also]. It reportedly employed almost 500 people as of 2017, and is based in Herzliya, near Tel Aviv, Israel.

NSO Group is a subsidiary of the Q Cyber Technologies group of companies. Q Cyber Technologies is the name the NSO Group uses in Israel, OSY Technologies in Luxembourg, and in North America it has a subsidiary formerly known as Westbridge - a former technology company now part of Progress SoftwareNSO Group has operated through other companies around the world.

According to several reports, software created by NSO Group was used in targeted attacks against human rights activists and journalists in various countries, was used in state espionage against Pakistan, and played a role in the murder of Saudi Arabia dissident Jamal Kashoggi by agents of the Saudi Arabia government. In October 2019, instant messaging company WhatsApp and its parent company Facebook sued NSO and Q Cyber Technologies under the U.S. Computer Fraud and Abuse Act (CFAA). NSO claims that it provides authorized governments with technology that helps them combat terror and crime.

The Pegasus spyware is classified as a weapon by Israel and any export of the technology must be approved by the government.

Annual revenues were around US$40 million in 2013 and $150 million in 2015. In June 2017, the company was put up for sale for $1 billion by Francisco PartnersNSO Group founders Omri Lavie and Shalev Hulio - partnering with European private equity fund Novalpina Capital  [defunct, 2021-08] - purchased a majority stake in NSO in February 2019.

On 3 November 2021 the United States added the NSO Group to its Entity List, for acting "contrary to the foreign policy and national security interests of the U.S." and it effectively bans the sale of hardware and software to the company.

History

NSO's founders are ex-members of Unit 8200, the Israeli Intelligence Corps unit responsible for collecting signals intelligence. NSO Group's start-up funding came from a group of investors headed by Eddy Shalev  [Chairman of F2 Venture Capital  |  local copy], a partner in venture capital fund Genesis Partners. The group invested a total of $1.8 million for a 30% stake.

In 2012, the government of Mexico announced the signing of a $20 million contract with NSO. It was later revealed by a New York Times investigation that NSO's product was used to target journalists and human right activists in the country. In 2015, the company sold surveillance technology to the government of Panama. The contract became the subject of a Panamanian anti-corruption investigation following its disclosure in a leak of confidential information from Italian firm Hacking Team.

In 2014, the American private equity firm Francisco Partners bought the company for $130 million. In 2015 Francisco was seeking to sell the company for up to $1 billion. The company was officially put up for sale for more than $1 billion in June 2017, roughly ten times what Francisco originally paid in 2014. At that time, NSO had almost 500 employees, up from around 50 in 2014.

On August 1, 2018, the human rights group Amnesty International accused NSO Group of helping Saudi Arabia spy on a member of the organization's staff.

Citizen Lab researchers reported in October 2018 that they were being targeted by undercover operatives connected to NSO. In response to an Associated Press report, NSO denied any involvement.

In early February 2019, one of the operatives targeting Citizen Lab researchers was identified as Aharon Almog-Assouline, a "former Israeli security official living in the Tel Aviv suburb of Ramat HaSharon."

On February 14, 2019, Francisco Partners sold a 60% majority stake of NSO back to co-founders Shalev Hulio and Omri Lavie, who were supported in the purchase by Novalpina Capital  [defunct, 2021-08]. Hulio and Lavie invested $100 million, with Novalpina Capital acquiring the remaining portion of the majority stake, thus valuing the company at approximately $1 billion. The day after the acquisition, Novalpina Capital attempted to address the concerns raised by Citizen Lab with a letter, stating their belief that NSO operates with sufficient integrity and caution.

In April 2019, NSO froze its deals with Saudi Arabia over a scandal alleging NSO software's role in tracking murdered journalist Jamal Khashoggi in the months before his death.

In May 2019, messaging service WhatsApp alleged that a spyware injection exploit targeting its calling feature was developed by NSO. Victims were exposed to the spyware payload even if they did not answer the call. WhatsApp told the Financial Times that "the attack has all the hallmarks of a private company known to work with governments to deliver spyware that reportedly takes over the functions of mobile phone operating systems." NSO denied involvement in selecting or targeting victims, but did not explicitly deny creating the exploit. In response to the alleged cyberattack, WhatsApp sued NSO under the Computer Fraud and Abuse Act (CFAA) and other U.S. laws in a San Francisco court on 2019-10-29. WhatsApp stated that the exploit targeted 1,400 users in 20 countries, including "at least 100 human-rights defenders, journalists and other members of civil society."

NSO employees had complained to WhatsApp about improved security, according to the court filings by WhatsApp and its parent company Facebook.

WhatsApp also alerted the 1,400 targeted users. In at least one case, the surveillance was authorized by a judge.

In April 2020, NSO Group blamed hacking of 1,400 WhatsApp users including journalists and human rights activists on its government clients. However, the firm did not disclose the names of its clients which, as Citizen Lab stated, include authorities in Saudi Arabia, UAE, Bahrain, Kazakhstan, Morocco, and Mexico. In court filings WhatsApp alleged that its investigation into how NSO's  Pegasus was used against 1,400 users in 2019 showed that the hacks originated from NSO Group servers rather than its clients' servers. WhatsApp said "NSO used a network of computers to monitor and update Pegasus after it was implanted on users' devices. These NSO-controlled computers served as the nerve centre through which NSO controlled its customers' operation and use of Pegasus." WhatsApp said that NSO gained "unauthorised access" to WhatsApp servers by reverse-engineering the WhatsApp app to be able to evade security features. NSO responded "NSO Group does not operate the Pegasus software for its clients."

Merger With Circles

In 2014, the surveillance firm Circles merged with the NSO Group. Circles is capable of identifying the location of a phone in seconds, anywhere in the world. It was identified that 25 countries across the world were customers of Circles. The firm has two systems. One operates by connecting to the purchasing country's local telecommunications companies' infrastructure. The other separate system, known as the "Circles Cloud, is capable of interconnecting with telecommunications country across the globe. In December 2020, the Citizen Lab reported that Supreme Council on National Security (SCNS) of the United Arab Emirates was set to receive both these systems. In a lawsuit filed against the NSO Group in Israel, email exchanges revealed links between Circles and several customers in the United Arab Emirates. Documents also revealed that Circles sent targets' locations and phone records to the United Arab Emirates' SCNS. Aside from Israel and the United Arab Emirates, the report named the governments of Australia, Belgium, Botswana, Chile, Denmark, Ecuador, El Salvador, Estonia, Equatorial Guinea, Guatemala, Honduras, Indonesia, Kenya, Malaysia, Mexico, Morocco, Nigeria, Peru, Serbia, Vietnam, Zambia, and Zimbabwe as likely customers of Circles surveillance technology.

In September 2021, Forensic News published shipping records showing that in 2020 Circles supplied equipment to Uzbekistan's State Security Service (SGB).

Foreign Offices and Export Controls

In late 2020, Vice Media published an article in which it reported that NSO Group had closed the Cyprus-based offices of Circles, the company it had acquired in 2014. The article, based on interviews with two former employees, described the integration between the two companies as "awful" and stated that NSO would rely on Circles' Bulgarian office instead. According to Vice, this came just over a year after an activist group known as Access Now wrote to authorities in both Cyprus and Bulgaria, asking them to further scrutinise NSO exports. Access now had stated that they had received denials from both the Bulgarian and Cypriot authorities, with both countries stating that they had not provided export licenses to the NSO Group. Despite this, an article written by The Guardian during the 2021 Pegasus scandal quoted NSO Group as saying that it had been "regulated by the export control regimes of Israel, Cyprus and Bulgaria." NSO's own "Transparency and Responsibility Report 2021," published about a month before the scandal, makes the same statement, adding that those were the three countries through which NSO exported its products. Circles' Bulgarian office, in particular, was stated to have been founded as a "bogus phone company" in 2015 by Citizen Lab citing IntelligenceOnline, a part of Indigo Publications. This report was reprinted by the Bulgarian investigation publication Bivol in December 2020, which appended it with public registry documents which indicated that the company's Bulgarian office had grown to employ up to 150 people and had received two loans worth about 275 million American dollars in 2017 from two offshore companies and a Swiss bank registered in the Cayman Islands.

Pegasus (Spyware)

  • See also main article: Pegasus (Spyware)
  • The Israeli Ministry of Defense licenses the export of Pegasus spyware to foreign governments, but not to private entities.

    Early versions of Pegasus were used to surveil the phone of Joaquín Guzmán, known as El Chapo. In 2011, Mexican president Felipe Calderón reportedly called NSO to thank the company for its role in Guzmán's capture.

    On August 25, 2016, Citizen Lab and Lookout revealed that Pegasus was being used to target human rights activist Ahmed Mansoor in the United Arab Emirates. Mansoor informed Citizen Lab researchers Bill Marczak and John Scott-Railton that his iPhone 6 had been targeted on 2016-08-10, by means of a clickable link in an SMS text message.

    Analysis by Citizen Lab and Lookout discovered that the link downloaded software to exploit three previously unknown and unpatched zero-day vulnerabilities in iOS. According to their analysis, the software can jailbreak an iPhone when a malicious URL is opened, a form of attack known as spear phishing. The software installs itself and collects all communications and locations of targeted iPhones, including communications sent through iMessage,   Gmail   Viber,   Facebook,   WhatsApp,   Telegram, and Skype. The software can also collect Wi-Fi passwords. The researchers noticed that the software's code referenced an NSO Group product called "Pegasus" in leaked marketing materials. Pegasus had previously come to light in a leak of records from Hacking Team, which indicated the software had been supplied to the government of Panama in 2015. The researchers discovered that Mexican journalist Rafael Cabrera had also been targeted, and that the software could have been used in Israel, Turkey, Qatar, Kenya, Uzbekistan, Mozambique, Morocco, Yemen, Hungary, Saudi Arabia, Nigeria, and Bahrain.

    Citizen Lab and Lookout notified Apple Inc.'s security team, which patched the flaws within ten days and released an update for iOS. A patch for macOS was released six days later.

    In 2017, Citizen Lab researchers revealed that NSO  exploit links may have been sent to Mexican scientists and public health campaigners. The targets supported measures to reduce childhood obesity, including Mexico's "Soda Tax."

    In April 2017, after a Lookout report, Google researchers discovered Android malware "believed to be created by NSO Group Technologies" and naming it Chrysaor (Pegasus' brother in Greek mythology). According to Google, "Chrysaor is believed to be related to the Pegasus spyware."

    In July 2017, the international team assembled to investigate the 2014 Iguala mass kidnapping publicly complained they thought they were being surveilled by the Mexican government. They stated that the Mexican government used Pegasus to send them messages about funeral homes containing links which, when clicked, allowed the government to surreptitiously listen to the investigators. The Mexican government has repeatedly denied any unauthorized hacking.

    In June 2018, an Israeli court indicted a former employee of NSO Group for allegedly stealing a copy of Pegasus and attempting to sell it online for $50 million worth of cryptocurrency.

    In October 2018 Citizen Lab reported on the use of NSO software to spy on the inner circle of Jamal Khashoggi just before his murder. Citizen Lab's 2018-10 report stated, with high confidence, that NSO's Pegasus had been placed on the iPhone of Saudi Arabia dissident Omar Abdulaziz, one of Khashoggi's confidantes, months before. Abdulaziz stated that the software revealed Khashoggi's "private criticisms of the Saudi royal family," which according to Abdulaziz "played a major role" in Khashoggi's death. In December 2018, a New York Times investigation concluded that Pegasus software played a role in the Khashoggi's murder, with a friend of Khashoggi stating in a filing that Saudi authorities had used the Israeli-made software to spy on the dissident. NSO CEO Shalev Hulio stated that the company had not been involved in the "terrible murder," but declined to comment on reports that he had personally traveled to the Saudi capital Riyadh for a $55 million Pegasus sale.

    In July 2019, it was reported that NSO Group had sold Pegasus software to Ghana in around 2016.

    In June 2020, an investigation by Amnesty International alleged that Moroccan journalist Omar Radi was targeted by the Moroccan government using the Israeli spyware Pegasus. The rights group claimed that the journalist was targeted three times and spied on after his device was infected with an NSO tool. Meanwhile, Amnesty International also claimed that the attack came after the NSO Group updated their policy in September 2019.

    According to an investigation by The Guardian and El PaísPegasus software was used by the government of Spain to compromise the phones of several politicians active in the Catalan independence movement, including President of the Parliament of Catalonia   Roger Torrent, and former member of the Parliament of Catalonia   Anna Gabriel i Sabaté. The results of a joint investigation by The Guardian and Le Monde alleged that people targeted by Pegasus software included six critics of the government in Togo, journalists in India and Morocco, and political activists in Rwanda.

    Pegasus has been used to target and intimidate Mexican journalists by drug cartels and cartel-entwined government actors.

    A report by The Citizen Lab revealed in December 2020 that the NSO Group shifted towards zero-click exploits and network-based attacks. It allowed the government customers to break into the target phones without interaction and without leaving any visible traces. According to the report, Saudi Arabia and the United Arab Emirates used the zero-click tool of the Pegasus spyware and deployed it through an opening in iMessage, to target two London-based reporters and 36 journalists at the Al Jazeera television network in Qatar.

    In July 2021, a joint investigation conducted by seventeen media organisations, revealed that Pegasus spyware was used to target and spy on heads of state, activists, journalists, and dissidents, enabling "human rights violations around the world on a massive scale." The investigation, dubbed "the Pegasus Project", was launched after a leak of 50,000 phone numbers of potential surveillance targets. Amnesty International carried out forensic analysis of mobile phones of potential targets. The investigation identified 11 countries as NSO clients: Azerbaijan, Bahrain, Hungary, India, Kazakhstan, Mexico, Morocco, Rwanda, Saudi Arabia, Togo, and the United Arab Emirates. The investigation also revealed that journalists from multiple media organizations including Al Jazeera,   CNN, the Financial Times, the The Associated Press,   The New York Times,   The Wall Street Journal,   Bloomberg News, and Le Monde were targeted, and identified at least 180 journalists from 20 countries who were selected for targeting with NSO spyware between 2016 and June 2021. The investigation further revealed that Azerbaijan, Hungary, India, and Morocco were among the states that used Pegasus to spy on journalists. The spyware was found to have been used to target three family members of the murdered Saudi Arabia journalist Jamal Khashoggi prior to his murder by agents of the Saudi state (despite repeated denials of involvement by NSO Group). The investigation discovered in mid-2021 that Koregaon Bhima activists were also successfully targeted by an as yet unidentified hacker who planted "evidence" on their computers.

    On 24 August 2021, according to the Citizen Lab, the NSO Group spyware was used to successfully hack the mobile phones of nine Bahraini human rights defenders between June 2020 and February 2021. Of the nine activists, four were believed with a "high degree of confidence" by the Citizen Lab to have been targeted by Bahrain's government using a Pegasus operator, LULU. Two zero-click   iMessage   exploits, the 2020 KISMET exploit, and a 2021 exploit called FORCEDENTRY, were also used to hack some of the activists. On 2021-09-07, Citizen Lab reported new findings to Apple regarding the FORCEDENTRY vulnerability, leading to Apple quickly releasing patches through iOS and iPadOS 14.8 on 2021-09-13.

    On 24 October 2021, reports revealed that The New York Times journalist Ben Hubbard was targeted multiple times using the Pegasus spyware over a three-year period. The targeting reportedly took place between June 2018 to June 2021, while he was reporting on Saudi Arabia, and writing a book about the Saudi Crown Prince Mohammed bin Salman. In 2018, Hubbard was targeted twice with a suspicious text message likely sent by Saudi Arabia and an Arabic text message on WhatsApp inviting him for a protest at a Saudi Embassy in Washington. This was followed by the 2020 KISMET exploit  zero-click exploit in July 2020. Lastly, on 13 June 2021, an iPhone belonging to Ben Hubbard was successfully hacked using the FORCEDENTRY exploit.


    Additional Reading

  • [ProPublica.org, 2022-07-12] Pegasus Spyware Maker NSO Is Conducting a Lobbying Campaign to Get Off U.S. Blacklist.  The cybersecurity firm has invested heavily in top lobbyists and law firms in an effort to lift restrictions on doing business in America. NSO is hoping the Israeli prime minister will raise the issue with Joe Biden when the two meet this week [2022-07].

  • [Calcalistech.com (Wikipedia: Calcalist), 2022-01-18] Israel police uses NSO's Pegasus to spy on citizens.  Mayors, leaders of political protests against former Prime Minister Benjamin Netanyahu, and former governmental employees, were among those tracked by police without a search or bugging warrant authorizing the surveillance.  |  Discussion: Hacker News: 2022-01-18

  • [APNews.com, 2021-12-21] Polish opposition duo hacked with NSO spyware.  |  Discussion: Hacker News: 2021-12-22

  • [Reuters.com, 2021-12-03] U.S. State Department phones hacked with Israeli company spyware - sources.  |  Discussion: Hacker News: 2021-12-03

  • [Apple.com, 2021-11-23] Apple sues NSO Group to curb the abuse of state-sponsored spyware.  Apple also announced a $10 million contribution to support cybersurveillance researchers and advocates.  |  Discussion: Hacker News: 2021-11-23

  • [NPR.org, 2021-11-10] They got hacked with NSO spyware. Now Israel wants Palestinian activists' funding cut.

  • [FrontLineDefenders.org, 2021-11-08] Six Palestinian human rights defenders hacked with NSO Group's Pegasus Spyware.  |  Investigation  |  local copy  |  Discussion: Hacker News: 2021-11-08

  • [theVerge.com, 2021-11-03] Pegasus spyware group blacklisted by the U.S. government.  American companies are restricted from exporting their goods and services to NSO Group, the company that built Pegasus.

  • [CitizenLab.ca, 2021-10-24] New York Times Journalist Ben Hubbard Hacked with Pegasus after Reporting on Previous Hacking Attempts.  |  Discussion, Hacker News: 2021-10-24

  • [Tehnologijaviews.xyz, 2021-10-09] NSO Pegasus Spy Software: Why One of the Pegasus Inventors Became A Dropout.  |  local copy


  • [CitizenLab.ca, 2020-12-20] The Great iPwn.  Journalists Hacked with Suspected NSO Group iMessage 'Zero-Click' Exploit.  |  local copy


  • [MIT TechnologyReview.com, 2020-08-19] The man who built a spyware empire says it's time to come out of the shadows.  Shalev Hulio, co-founder and CEO of NSO, says his industry is full of companies trying to avoid scrutiny.

  • [Sky.com, 2021-07-27] Pegasus spyware owner Novalpina to be liquidated after failure to resolve internal bust-up.  The London-headquartered private equity firm is to be wound up following a months-long dispute between its three principals and controversy over its ownership of the surveillance technology provider NSO GroupSky News (U.K.) learns.

  • [Financial Times: FT.com, 2021-07-27] Private equity owner of spyware group NSO stripped of control of €1bn fund.  Novalpina Capital investors' vote follows months of turmoil amid disagreements between co-founders.  |  Archive.today snapshot  |  local copy

  • [The Associated Press: AP.org, 2019-02-27] Aharon Almog-Assoulin">Court filing links spy exposed by The Associated Press to Israel's Black Cube.

  • [TimesOfIsrael.com, 2019-02-11] Exposed Israeli spy linked to apparent effort by NSO Group to derail lawsuits.  AP investigation uncovers alleged sprawling undercover bid by Israeli firm, which is under fire for its spyware sales to foreign governments.  |  A man who identified himself as "Michel Lambert" but whose real name is Aharon Almog Assoulin and was linked in investigations with an alleged undercover operation targeting critics of the Israeli tech firm NSO Group.


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