Israeli spyware giant NSO Group ordered to pay nearly $170M to WhatsApp for hacking accounts
Israeli spyware company NSO Group was ordered by a U.S. federal court on Tuesday to pay WhatsApp and its parent company Meta almost $170 million in damages after its cyber tools were used to hack around 1,400 WhatsApp accounts.
NSO Group has become the poster child in recent years for the mostly underground spyware market, used increasingly by governments to
surveil dissidents
, journalists
and politicians
. The ruling, the latest step in a process that began in 2019, is a major win for privacy advocates and those pushing back against NSO Group's controversial Pegasus software.
According to a spokesperson for Meta, the ruling involves NSO Group paying punitive damages of around $167 million to WhatsApp on top of more than $440,000 in compensatory damages after one day of jury deliberation. This stems from an
effort linked to NSO Group
to exploit video calling systems and send malware to around 1,400 WhatsApp users in 2019, many of whom worked for civil society groups. WhatsApp filed a complaint in court after the plot was discovered.
NSO Group was previously
found liable for hacking the WhatsApp user accounts
, setting a precedent for organizations targeted by spyware to go after the companies that build the malicious software.
A post on Meta's site
shortly after the ruling celebrated the win, and noted that WhatsApp will be working to get a court order to 'prevent NSO from ever targeting WhatsApp again.' It added that Meta will be making an unspecified donation to digital rights organizations that work to expose spyware abuses. In addition, WhatsApp plans to publish transcripts of deposition videos from NSO Group executives and others to aid researchers in understanding the full use of spyware globally.
'Today's verdict in WhatsApp's case is an important step forward for privacy and security as the first victory against the development and use of illegal spyware that threatens the safety and privacy of everyone,' the post reads.
Apple also filed a suit against NSO Group, seeking damages for spyware being used against its customers. It ultimately
dropped the case last year
after concluding that the suit might expose sensitive Apple user data.
NSO Group has pushed back repeatedly against criticism, arguing that its Pegasus spyware has been used for good, such as
catching high-profile criminals
.
Gil Lainer, vice president of global communications for NSO Group, said in a statement Tuesday that the decision is 'another stope in a lengthy judicial process,' and that 'we firmly believe that our technology plays a critical role in preventing serious crime and terrorism and is deployed responsibly by authorized government agencies.'
'We will carefully examine the verdict's details and pursue appropriate legal remedies, including further proceedings and an appeal,' Lainer said, adding that the company 'remains fully committed to its mission to develop technologies that protect public safety' while working within legal frameworks.
NSO Group was added to the Commerce Department's entity list in 2021, making it difficult for it to do business in the U.S. Meanwhile, the European Parliament
has set up a committee
to investigate the use of Pegasus across EU nations.
Last year, the Biden administration backed a pledge for
other nations to use spyware responsibly
, and the Trump administration
recently backed
an international effort to set a code of conduct for wielding this type of software.
John Scott-Railton, a senior researcher for Citizen Lab, which helped investigate the initial hacks of WhatsApp accounts,
tweeted Tuesday
that NSO Group's conduct 'deserved to be punished,' adding that 'NSO makes millions hacking mostly American tech companies … so that dictators can hack dissidents.'
'NSO Group emerges from the trial severely damaged,' Scott-Railton tweeted. 'This will scare customers.'

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
CIA analyst who leaked Israel strike plan sentenced to three years
A former CIA analyst who leaked classified documents about Israel's plans to strike Iran has been sentenced to 37 months in prison. Asif William Rahman, 34, pleaded guilty in January to two counts of willful retention and transmission of national defence information under the Espionage Act. Authorities say that, using his high-level security clearance, Rahman printed, photographed and sent out top secret documents. They later ended up being circulated on social media. Israel carried out air strikes on Iran last October, targeting military sites in several regions, in response to the barrage of missiles launched by Tehran weeks earlier. "For months, this defendant betrayed the American people and the oaths he took upon entering his office by leaking some of our Nation's most closely held secrets," John Eisenberg, assistant attorney general for national security, said in a press release. In October 2024, documents appearing to be from a Department of Defense agency were published on an Iranian-aligned Telegram account. The documents, bearing a top-secret mark, were viewable between the Five Eyes intelligence alliance, made up of the US, Britain, Canada, New Zealand and Australia. The leaked documents are also said to have contained the US' assessment of Israeli plans ahead of the strike on Iran and the movements of military assets in preparation. One referred to Israel's nuclear capabilities, which have never been officially acknowledged. When asked about the leak, former President Joe Biden said he was "deeply concerned". Israel ended up carrying out those air strikes later in the month, targeting military sites in several regions in response to missiles fired by Tehran weeks prior. Rahman, who worked abroad, was arrested by the FBI in Cambodia and brought to the US territory of Guam to face charges.
Yahoo
an hour ago
- Yahoo
Gaza Humanitarian Foundation says Hamas attack has killed multiple aid workers
Multiple aid workers were killed after a bus was attacked in Gaza on Wednesday night, according to a US-backed humanitarian aid organization which accused Hamas of carrying out the assault. Hamas has yet to respond to the allegations. The Gaza Humanitarian Foundation (GHF), a controversial US and Israeli-backed aid initiative, said that a bus carrying more than two dozen of its team members was attacked by Hamas at around 10 p.m. local time. 'We are still gathering facts, but what we know is devastating: there are at least five fatalities, multiple injuries, and fear that some of our team members may have been taken hostage,' GHF said in a statement. The group was en route to a distribution center in the area west of Khan Younis, GHF said, adding further details would be provided once they became known. 'We condemn this heinous and deliberate attack in the strongest possible terms,' the GHF said in a statement. The GHF also accused Hamas of repeatedly threatening the organization in recent days. On Sunday, Hamas media said its forces have 'full authority and mandate to strike decisively against any entity or individual collaborating with the enemy's plans or with any rogue, criminal, or traitorous elements that violate the law and the traditions of our people.' 'All agents, thieves, and armed criminal gangs are considered legitimate targets for the resistance and its security apparatus,' the militant group said. The GHF was established amid Israeli accusations that Hamas is stealing aid in Gaza and profiting off its sale but the organization has been controversial from the get-go and criticized by multiple international aid agencies. The humanitarian situation in Gaza remains desperate. Restrictions imposed by the Israeli military on aid routes, ongoing airstrikes, a lack of security and the continuous displacement of tens of thousands of people are aggravating an already alarming situation, according to the United Nations and other aid agencies. The supplies that do get in risk getting looted and only a fraction of what is needed is getting in. Multiple Palestinians have been killed by gunfire near aid distribution sites since GHF began operations. This is a developing story and will be updated.
Yahoo
2 hours ago
- Yahoo
Energy Deal Creates Technical Bullish Signal for Meta Platforms Stock (META)
From a fundamental perspective, social media and technology juggernaut Meta Platforms (META) recently made a compelling case for long-term investment. Meta recently entered into a 20-year power purchase agreement with Constellation Energy's (CEG) Clinton nuclear plant in Illinois. Primarily, the deal will help Meta manage its energy costs, a core component of its forward growth strategies. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Indeed, artificial intelligence has emerged as one of the top priorities in the tech ecosystem. However, generative AI comes at a significant cost: substantial power consumption. In 2023, the power required to support AI deployment was estimated at 1 gigawatt. Experts believe that this rate will increase sevenfold to tenfold in the next two years, thus underscoring the criticality of Meta's energy deal. I too am bullish on META, but for different reasons. Market narratives aren't always reliable indicators of future valuations. Even as sentiment around Meta remains largely optimistic, analysts are actively revising their forecasts. While the majority maintain a bullish stance, the consensus price target suggests a degree of caution. For traders focused on near-term gains, compelling narratives alone don't offer enough concrete data for decision-making. In these cases, speculators often rely more on empirical, quantitative indicators to inform their strategies. When investors turn to financial publications, they're not simply looking for recycled narratives—they're in search of opportunities, specifically cases where the market may have mispriced certain stocks. To uncover these discrepancies, investors often turn to fundamental and technical analysis. While these methods can provide helpful context and short-term guidance—helping frame potential entry and exit points—they fall short of offering true empirical precision. The core issue lies in the problem of non-stationarity: over time, the metrics and benchmarks used for analysis can shift significantly due to changing market conditions and sentiment cycles, undermining their long-term reliability. For example, META stock recently closed near the $700 level. Five years ago, the equity could be bought for around $230. And a decade ago, META was priced at around $117. Attempting to conduct meaningful statistical analyses, such as price clustering, would be impossible given the significant disparity in share prices. Similarly, it's challenging to make valuation assessments on META stock. One could note that the equity trades at over 27x earnings. However, there's no first-order principle that this metric means anything. Furthermore, a range of catalysts — including business expansion, industry transitions, share dilution, and buybacks — can alter this ratio. Subsequently, comparisons across time aren't meaningful due to the shifting framework. To conduct an empirically sensible analysis, one must impose stationarity on the dataset, and that's where market breadth comes into play. At its core, market breadth is the pattern of accumulation and distribution. Another way of looking at market breadth is that it represents demand, and demand is a binary concept — it's either happening or it's not. Plus, from a statistical standpoint, demand is a discrete event that is easily categorizable and quantifiable across time. Stated differently, a market breadth profile that occurred several years ago remains relevant to the same profile that is currently in effect. That's the benefit of compressing — or abstracting to use the proper lexicon — price discovery into a binary code: analysts can develop probability matrices, focusing on how one demand profile (or behavioral state) transitions to another. With META stock, in the past two months, the security printed a '7-3-U' sequence: seven up weeks, three down weeks, with a net positive trajectory across the 10-week period. Notably, in 58.25% of cases, the following week's price action results in upside, with a median return of 2.59%. If the implications of the 7-3-U sequence materialize as projected, META stock could potentially reach $715.78 in short order, possibly within a month. Should the bulls maintain control of the market, the optimists could attempt to drive the share price to $723 over the next three weeks. Primarily, the setup incentivizes a bullish posture because of the baseline probability. On any given week, the chance that META stock will rise is 55.51%, which is a decent upward bias. However, the 7-3-U sequence adds a couple of percentage points to the odds in favor of the bullish speculator. In the open market, a 3% gain or so isn't really going to move the needle. However, with the leverage of multi-leg options strategies, relatively incremental gains can turn into significant payouts. For those who want to take a more aggressive approach while staying within the realm of rationality, the 710/715 bull call spread, expiring June 27, is offering value. This transaction involves buying the $710 call and simultaneously selling the $715 call, for a net debit paid of $210. Should META stock rise through the short strike price at expiration, the maximum reward is $290, which translates to a payout of over 138%. What makes this trade so enticing? As specified earlier, the statistical response to the 7-3-U is generally to the upside. Should META stock rise, the median return is 2.59%. Of course, the actual result could be higher or lower. If the median performance materializes, META could soon be priced near $716. Therefore, a $710 price target provides a certain level of 'safety' margin. Notably, the market makers are offering a 138% payout, which suggests that they don't expect META stock to rise significantly from here. Most likely, they believe that the good news is priced in. Among professional market analysts, META stock carries a Strong Buy consensus rating based on 42 Buys, three Holds, and one Sell rating. The average META stock price target is $698.07, implying a marginal upside potential of less than 1% over the coming 12 months. If you're looking to invest in Meta Platforms, the company's recent energy deal offers a strong long-term narrative. However, if your goal is to trade META stock for shorter-term gains, you'll need more actionable, data-driven insights. In that case, statistical analysis may be a better approach, providing the required empirical rigor to identify high-probability opportunities. Disclaimer & DisclosureReport an Issue Sign in to access your portfolio