Meta suit against Israel's NSO offered rare insight into world of cyberespionage
By Raphael Satter
WASHINGTON (Reuters) -Israel's NSO Group was handed a $168 million penalty by a federal jury in California on Tuesday for hijacking the servers of WhatsApp in order to hack users of the Meta-owned chat platform on behalf of foreign spy agencies. The case caps a six-year battle between the American social media giant and the surveillance firm. It has also cast a unusual amount of light on the inner workings of the spyware industry.
Here is what we have learned:
TOP-SHELF SPYWARE IS NOT CHEAP
Between 2018 and 2020 NSO charged its European government customers a "standard price" of $7 million for use of its platform to hack 15 different devices at a time, according to Sarit Bizinsky Gil, NSO's vice president of global business operations. The executive said the ability to hack a phone outside the customer's country was a separate add-on worth approximately $1 million or $2 million.
"It is a highly sophisticated product," Meta lawyer Antonio Perez told the court in his opening statement, "And it carries a hefty price tag."
NSO HACKED THOUSANDS OF DEVICES
Between 2018 and 2020 the Israeli spyware firm was responsible for breaking into thousands of devices, according to Tamir Gazneli, NSO's vice president of research and development. During the trial, Gazneli said he disagreed with the idea that his company sold "spyware," leading to an exchange with Perez in which Gazneli insisted his firm's tools were used to gather intelligence on targets but "not people."
"You don't consider the targets people, Mr. Gazneli?" Perez asked him.
"That's not what I said," he responded. "What I said is that the targets are intelligence targets of intelligence agencies."
AMERICAN TAXPAYERS SENT MILLIONS TO NSO'S COFFERS
The Central Intelligence Agency and the Federal Bureau of Investigation collectively paid NSO $7.6 million, according to court records. The agencies' past dealings with the Israeli spyware company had previously been disclosed by The New York Times, which said the CIA bankrolled Djibouti's purchase of NSO spyware and the bureau bought it for testing, but the trial put a price tag on the relationship.
NSO TARGETED WHATSAPP'S INFRASTRUCTURE DURING THE LAWSUIT
The lawsuit against NSO did not deter the spyware firm from continuing to abuse WhatsApp's infrastructure, Meta's lawyers said in a court document filed late last month.
"NSO repeatedly targeted Plaintiffs, Plaintiffs' servers, and Plaintiffs' mobile client even after this litigation was filed," the filing said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
18 minutes ago
- Yahoo
Israel deports Greta Thunberg after Gaza-bound ship she was on was seized
JERUSALEM (AP) — Israel deported activist Greta Thunberg on Tuesday, a day after the Gaza-bound ship she was on was seized by the Israeli military. Speaking upon arrival in Paris en route to her home country of Sweden, Thunberg called for the release of the other activists who were detained aboard the Madleen. She described a 'quite chaotic and uncertain' situation during the detention. The conditions they faced 'are absolutely nothing compared to what people are going through in Palestine and especially Gaza right now," she said. The trip was meant to protest Israeli restrictions on aid to Gaza's population of over 2 million people after 20 months of war, according to the Freedom Flotilla Coalition, the group behind the journey. "We were well aware of the risks of this mission," Thunberg said. 'The aim was to get to Gaza and to be able to distribute the aid.' She said the activists would continue trying to get aid to Gaza. On Monday, U.S. President Donald Trump called Thunberg 'a young angry person' and recommended she take anger management classes. "I think the world need a lot more young angry women," Thunberg said Tuesday in response. Thunberg said it appeared she was headed back to Sweden, hadn't had access to a phone in a few days and wanted a shower. The activists were held separately and some had trouble accessing lawyers, she added. Asked why she agreed to deportation, she said, 'Why would I want to stay in an Israeli prison more than necessary?' Thunberg called on supporters to ask their governments 'to demand not only humanitarian aid being let into Gaza but most importantly an end to the occupation and an end to the systemic oppression and violence that Palestinians are facing on an everyday basis.' She said recognizing Palestine is 'the very, very, very minimum' that governments can do to help. Other activists face deportation Thunberg was one of 12 passengers on the Madleen. Israeli naval forces seized the boat without incident early Monday about 200 kilometers (125 miles) off Gaza. The Freedom Flotilla Coalition, along with rights groups, said Israel's actions in international waters were a violation of international law. Israel rejects that charge, saying such ships intend to breach what it argues is a lawful naval blockade of Gaza. Israel viewed the ship as a publicity stunt, calling it the 'selfie yacht' with a 'meager' amount of aid that amounted to less than a truckload. The Freedom Flotilla Coalition said three activists, including Thunberg, had been deported along with a journalist. It said it had encouraged some to do it so they could speak freely about their experiences. 'Their detention is unlawful, politically motivated and a direct violation of international law,' the coalition said in a statement. Eight other passengers refused deportation and are being detained at Givon prison in Ramle. On Tuesday, Israeli authorities heard their cases at a detention tribunal. 'We argued today, and that also was emphasized by all the activists, that their goal is to enter humanitarian aid to Gaza, to end the famine and to end a genocide in Gaza," said Lubna Tuma, a lawyer with legal rights group Adalah, who is representing the activists. "Any violation or any prohibition to entering the humanitarian aid to Gaza is deepening the complicity of Israel in the famine in Gaza.' Legal representatives for the group said that because Israeli seized their vessel in international waters and forcibly transported them to Israeli territory, Israel had no authority to detain or deport them. 'Pirate attack' Sabine Haddad, a spokeswoman for Israel's Interior Ministry, said the activists who were being deported Tuesday had waived their right to appear before a judge. The others have a hearing with the judge and will be held for 96 hours before being deported, she said. Rima Hassan, a French member of the European Parliament who is of Palestinian descent, was among the passengers. She has previously been barred from entering Israel because of her opposition to Israeli policies toward the Palestinians. It was not clear whether she was being immediately deported or detained. French Foreign Minister Jean-Noel Barrot said one of the detained French activists signed an expulsion order and would leave Tuesday. The other five refused. He said all the activists received consular visits. Sergio Toribio, a Spanish activist, slammed Israel's actions after he arrived in Barcelona. 'It is unforgivable, it is a violation of our rights. It is a pirate attack in international waters," he told reporters. Blockade of Gaza Palestinians in Gaza are now almost completely dependent on international aid. Israel and Egypt have imposed varying degrees of a blockade on Gaza since Hamas seized power from rival Palestinian forces in 2007. Israel says the blockade is needed to prevent Hamas from importing arms, while critics say it amounts to collective punishment of Gaza's Palestinian population. During the 20-month-long war in Gaza, Israel has restricted and sometimes blocked all aid into the territory, including food, fuel and medicine. Experts say that policy has pushed Gaza toward famine. Israel asserts that Hamas siphons off the aid to bolster its rule. Hamas-led militants killed around 1,200 people, mostly civilians, in the Oct. 7, 2023, attack that ignited the war and took 251 hostages, most released in ceasefire agreements or other deals. Hamas still holds 55 hostages, more than half believed to be dead. Israel's military campaign has killed more than 54,000 Palestinians, according to the Gaza Health Ministry, which doesn't distinguish between civilians and combatants but has said women and children make up most of the dead. The war has destroyed vast areas of Gaza and displaced around 90% of the territory's population. ___ Associated Press writers Angela Charlton in Paris, Teresa Medrano in Madrid, Melanie Lidman in Jerusalem and Tia Goldenberg in Tel Aviv, Israel, contributed to this report. ___ Follow AP's war coverage at Isaac Scharf And Areej Hazboun, The Associated Press
New York Post
18 minutes ago
- New York Post
Ex-CIA analyst who admitted leaking docs about Israel strike on Iran gets 37 months in prison
An ex-CIA analyst was sentenced to more than three years in prison Wednesday for leaking top-secret documents about Israel's plans to retaliate against Iran last year. Asif William Rahman, 34, had pleaded guilty in January to two counts of willful retention and transmission of classified information after he was arrested for absconding with records from the National Geospatial-Intelligence Agency last October that indicated Israel was planning to launch airstrikes in response to a massive Iranian missile attack. Rahman, who had been a CIA employee since 2016 and had access to top secret documents, leaked the stolen information on social media platforms — forcing Israel to delay its attack. Advertisement He was sentenced to three years and one month in federal prison by US District Judge Patricia Tolliver Giles, which is less than the government had demanded. 3 Rahman was sentenced to more than three years in federal prison. AP 'Asif Rahman violated his position of trust by illegally accessing, removing, and transmitting Top Secret documents vital to the national security of the United States and its allies,' US Attorney for the Eastern District of Virginia Erik Siebert said in a statement. Advertisement 'The urgency with which Mr. Rahman was identified, arrested, charged, and prosecuted is a testament to the commitment and professionalism of the investigators and prosecutors who brought him to justice. 'This case should serve as a stern warning to those who choose to place their own goals over their allegiance to our nation.' Rahman was working in the US Embassy in Phnom Penh, Cambodia, on Oct. 17, 2024, when he sneaked the documents out in his backpack, brought them to his home, photographed them and then transmitted them to other individuals, before destroying evidence of his actions, according to the Justice Department. The top-secret documents appeared on the 'Middle East Spectator' Telegram channel the following day and 'appeared publicly on multiple social media platforms, complete with the classification ranking,' prosecutors said. Advertisement The documents laid out intelligence gathered from satellite images of an Israeli base taken on Oct. 15 and 16. The breach forced Israeli officials to postpone their attack until Oct. 26. 3 The ex-CIA employee pleaded guilty in January to leaking classified information. NurPhoto via Getty Images 3 Rahman leaked documents related to Israel's plans to launch airstrikes against Iran. WAEL HAMZEH/EPA-EFE/Shutterstock Advertisement Rahman 'repeatedly accessed and printed classified National Defense Information' up until his arrest in November of 2024, according to the DOJ. In the spring of 2024, when he was working in Virginia as a CIA analyst, he disclosed a batch of five secret and top-secret documents, making copies and giving them to people who weren't allowed to see them. And in the fall of 2024, he leaked another 10 classified documents. 'I fully accept responsibility for my conduct last year,' Rahman said in court Wednesday, according to the Cincinnati Enquirer. 'There was no excuse for my actions.' Rahman's attorneys blamed his actions on 'family-related grief' and traumatic assignment in Iraq, compounded by Israel's war against Hamas.
Business of Fashion
23 minutes ago
- Business of Fashion
Zara Owner Inditex Posts Slowing Growth
Zara owner Inditex SA reported a muted start to the second quarter and warned that foreign-exchange fluctuations could have a greater impact on results this year than anticipated. The shares tumbled. Revenue at the world's largest listed clothing retailer rose 6% in the five weeks to June 9, excluding currency effects. That was weaker than last year's start to the summer season, the Arteixo, Spain-based retailer said on Wednesday. 'The release fails to dispel concerns on slowing growth,' analysts at Barclays wrote in a note. The company's shares fell as much as 6.4 percent in early Madrid trading. The stock is down about 4.7 percent since the start of the year. Even though current trading is tracking higher than the 4.2 percent sales growth recorded in the first quarter, the latest numbers suggest that Inditex, like its peers, is not immune to a drop in demand prompted by the global trade war. The company has fared better than many of its rivals by keeping tighter controls on inventory, enabling it to remain nimble in a fickle fashion industry, but its sales-growth rates have headed down sharply from the post-pandemic boom era. Swedish rival Hennes & Mauritz AB posted disappointing first-quarter results because of stockpiles of unsold clothing. Foreign-exchange swings are likely to be a greater-than-expected drag on revenue this year, Inditex warned. The company expects currency fluctuations to shave 3 percent off sales this year, up from 1 percent it had expected previously. The adjustment follows a notable depreciation in both the US dollar and the Mexican peso against the euro, shrinking international earnings when converted back to the company's home currency. Other retailers have also signalled the cooling effect FX swings are having with H&M citing a strong kroner as another reason for its weak first-quarter. Last month, German sneaker brand Puma AG said the effect of tariffs and currency fluctuations was challenging to manage. The global garment industry tends to be a dollar-denominated business, which can particularly affect European retailers when they translate earnings back into local currencies. Inditex first spooked the market in March when it signalled a weaker start to its fiscal year, provoking a 7.5 percent fall — the biggest single-day plunge in its shares in five years. In its first quarter ended April 30, operating profit was in line with analyst estimates, while revenue was below expectations. The retailer said costs grew 2.3 percent in the period, rising faster than the 1.5 percent increase in revenue, including currency swings. Asked about the effect of President Donald Trump's tariffs, Inditex said it would use its broad range of suppliers, including those close to home in Spain, Portugal, Turkey and Morocco to manage the situation. 'In any case, I'd say that we see growth opportunities globally, not just in one market,' said Investor Relations Director Gorka Garcia-Tapia Yturriaga on a call with analysts. Over the last few years, the company has invested in both expanding its network of stores and also on refurbishing existing outlets to ensure a better shopping experience for customers. The company plans to spend €1.8 billion ($2 billion) again this year on store improvements and technology, along with an additional €900 million to expand its logistics network. By Clara Hernanz Lizarraga Learn more: The Brewing Controversy Over the Cotton in Your T-Shirt Zara owner Inditex, the world's largest fast fashion company, is ditching the industry's biggest sustainable cotton scheme amid a deforestation scandal and a wider push to prioritise organic fibres.
