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    The Sunday Read: 'The Battle for the World’s Most Powerful Cyberweapon'

    enFebruary 27, 2022

    Podcast Summary

    • Revolutionary intelligence tool Pegasus intercepts encrypted communicationsPegasus, an advanced cyber tool, allows agencies to intercept encrypted communications on smartphones, enabling them to gather data, open microphones, and take photographs. However, its use by tyrants and dictators against civil society raises ethical concerns.

      The Israeli company NSO and its product Pegasus represent a revolutionary shift in intelligence and law enforcement capabilities, enabling the interception of encrypted communications on smartphones before they are encrypted. Pegasus, which can be used to grab data, open microphones, and take photographs, has been a game-changer for agencies looking to catch criminals and terrorists. However, it has also been used by tyrants and dictators against civil society, human rights activists, political dissidents, and journalists. The US, specifically the FBI, has acquired Pegasus for testing and evaluation, but its use and potential operational capabilities remain unclear. This demonstrates the complex and nuanced issues surrounding advanced cyber technology and its potential misuse.

    • NSO's Pegasus spyware used for abuses against journalists, dissidents, and potential victims of human rights violationsPegasus spyware, used for crime and terrorism prevention, has been subjected to abuses against journalists, dissidents, and potential victims of human rights violations. Controversial use in countries like Mexico, UAE, and Saudi Arabia raises concerns about privacy and human rights.

      NSO's Pegasus spyware, which has been used by law enforcement and intelligence agencies to combat crime and terrorism, has also been subjected to numerous abuses, including targeting journalists, political dissidents, and even potential victims of human rights violations. The use of Pegasus by countries like Mexico, United Arab Emirates, and Saudi Arabia against individuals who were not involved in criminal or terrorist activities has raised serious concerns about privacy and human rights. Despite these concerns, the FBI and other American agencies have shown interest in using Pegasus, but are restricted from targeting US numbers due to Israeli regulations. NSO has recently offered a workaround called Phantom, which can hack any US number with a special license from Israel. The debate over the proper balance between privacy and security in the digital age, particularly with the increasing use of smartphones and spyware, continues to be a contentious issue.

    • U.S. Debate over NSO's Pegasus Spyware UseThe U.S. government debated the legality and ethics of using NSO's Pegasus spyware domestically, but continued to do so, leading to a ban after revelations of targeting journalists and dissidents.

      The use of advanced surveillance technology like Phantom, developed by NSO Group, raises complex legal and ethical questions, particularly when it comes to domestic deployment. The two-year-long debate within the U.S. government revolved around potential violations of wiretapping laws. Despite these concerns, the FBI continued to use and pay for the Pegasus system, leading to intense discussions with NSO engineers about the technological details and their legal implications. However, the revelation of NSO's involvement in targeting journalists and political dissidents led to the U.S. government adding NSO to its entity list, effectively banning American companies from selling critical supplies to the Israeli firm. This move, which was perceived as a rebuke by Israel, highlights the complex relationship between technology, national security, and diplomacy, with Israel maintaining significant control over who NSO can sell its spyware to.

    • Cyber weapons as a new form of currency in international relationsGovernments view cyber weapons as a means to buy influence, similar to military hardware. Israel's sale of Pegasus has shifted votes at the UN and played a role in diplomatic efforts against Iran and the Abraham Accords.

      The sale of cyber weapons, such as Pegasus, has become a new form of currency for influencing international relations. Countries like Mexico and Panama have shifted their votes at the UN in Israel's favor after gaining access to Pegasus. The spying tool has also played a crucial role in Israel's diplomatic efforts against Iran and in negotiating the Abraham Accords. Israel's pursuit of influence and NSO's profits have led to Pegasus being sold to countries with questionable human rights records. The United States has responded by secretly acquiring and deploying the technology while denouncing the company publicly. This showdown between the US and Israel demonstrates how governments view cyber weapons as a means to buy influence, similar to military hardware. The cyber weapons industry has changed international relations profoundly, and Israel has a long history of using weapons sales to forge alliances and secure favorable votes at the UN. With the rise of cyber weapons, a new kind of weapons industry has emerged in Israel, and the use of these weapons is radically changing the nature of state relations.

    • From chicken coop to cyber weapons powerhouseNSO's success comes from its Israeli origins, highly skilled workforce, and government influence.

      NSO Group, a cyber weapons manufacturer based in Israel, was able to achieve unprecedented success and strategic value for the Israeli government due to its unique origins and highly skilled workforce. Founded by Sheleb Julio and Omri Lavi in a former chicken coop, they struggled to find a profitable product until they developed technology that allowed law enforcement and intelligence agencies to control and collect data from smartphones before encryption. With the addition of Niv Karmi, a former military intelligence and Mossad member, they recruited a team of highly skilled engineers, mostly veterans of Israeli Military Intelligence Directorate and its Unit 8200. This team, with their advanced training and focus on discovering new vulnerabilities, gave NSO a significant competitive advantage, allowing them to discover and exploit multiple "0 days" (new vulnerabilities) unlike their rivals. The Israeli government's influence over the firm through export licenses provides them with a crucial lever to shape the actions of the firms and the countries they sell to.

    • NSO's early decisions shaped its successNSO's focus on regulatory oversight and limiting sales to governments helped establish trust and ensured growth. A major success in Mexico led to diplomatic gains for Israel.

      NSO's early decisions to prioritize regulatory oversight and limit sales to governments helped establish it as a trusted and effective provider of spyware technology. This approach not only restricted the number of potential clients but also protected the company from public backlash and ensured its growth. The first major success came when Mexico, seeking to hack encrypted cartel communications, chose Pegasus over sporadic NSA access. The success of Pegasus led to a revitalized investigation operation and diplomatic gains for Israel, as Mexico began to shift its foreign policy stance towards Israel.

    • Israeli surveillance tech used to spy on activists, opposition figures, and journalists in MexicoThe sale and use of Israeli surveillance technology, like Pegasus, by foreign governments can lead to human rights abuses and potential misuse of power. Strict regulations and oversight are necessary to prevent such abuses.

      The sale and use of surveillance technology, such as Pegasus, by Israeli companies to foreign governments can raise serious concerns about human rights abuses and potential misuse of power. The case of Mexico illustrates this, where authorities used Pegasus to spy on activists, opposition figures, and journalists, and possibly even cover up investigations. The involvement of high-ranking officials, like the former chief of the Mexican FBI, in these abuses adds to the complexity of the issue. Furthermore, the reluctance of some countries, like the United States, to share intelligence can push governments towards purchasing such technology from other sources, potentially leading to further abuses. The close relationship between Israel and certain foreign governments, as seen in the case of Panama, can also result in significant political and commercial benefits for Israel. However, it is crucial that the sale and use of such technology are subject to strict regulations and oversight to prevent misuse and protect human rights.

    • Political Espionage with Pegasus SpywareThe Pegasus spyware, sold by NSO Group, was used for political espionage against opponents, judges, union leaders, business competitors, and personal targets in various countries, violating human rights and due legal process.

      The use of the Pegasus spyware, sold by the Israeli company NSO Group, was involved in numerous instances of political espionage against opponents, judges, union leaders, business competitors, and even personal targets like mistresses, in various countries without following due legal process. This included leaders in Poland, India, and Hungary, who used it for their own purposes against political opponents and journalists. NSO's sales were growing rapidly, attracting investors like Francisco Partners, and the spyware was used to help establish relationships between right-wing leaders worldwide. Despite controversies and allegations of human rights violations, some countries, including Hungary, continued to purchase Pegasus, demonstrating its value as a tool for political manipulation and surveillance.

    • New alliances in the Middle East against common enemy IranIsrael sells surveillance tech to Sunni Arab states despite human rights concerns, highlighting the complex nature of new alliances against Iran.

      The assassination of Mahmoud Al-Mansoour on Emirati soil led to a strained relationship between the UAE and Israel, but this incident was just one piece of a larger geopolitical shift happening in the Middle East. Israel and Sunni Arab states, including the UAE and Saudi Arabia, have been forming alliances against their common enemy, Iran. This new alliance has led to Israel selling surveillance technology, like Pegasus, to these countries, despite human rights concerns. In 2017, Israel sold Pegasus to Saudi Arabia, and in 2019, after a brief suspension, the sale was resumed. The sale of Pegasus to Saudi Arabia, and the subsequent human rights violations against a critic of the Saudi government, Mahmoud Al-Mansoour, highlights the complex and often problematic nature of these new alliances in the Middle East.

    • Weapons deals played a significant role in the Abraham Accords peace negotiationsThe Middle East's diplomacy, military deals, and technology are interconnected, and the consequences can be severe when things don't go as planned.

      During the Abraham Accords peace negotiations in 2020 between Israel and several Arab states, weapons deals played a significant role behind the scenes. The U.S. agreed to sell advanced military equipment to the UAE, causing Israel's concerns about losing its edge in the region. In return, Israel granted Pegasus spyware licenses to several signatories, including Saudi Arabia. However, when the Saudi license expired, the Israeli Defense Ministry declined to renew it due to Saudi's reported misuse of Pegasus. This led to an urgent call from Saudi Crown Prince Mohammed to Prime Minister Netanyahu, who intervened to have the license renewed. This incident highlights the interconnectedness of diplomacy, military deals, and technology in the Middle East, and the potential consequences when things don't go as planned. Additionally, the episode took on historical significance when U.S. National Security Advisor Jake Sullivan visited Israel in 2021 to discuss a new nuclear deal with Iran, and the Israeli officials also raised concerns about the future of NSO, a potential vacuum for other countries to fill with their own hacking tools.

    • U.S. blacklists Israeli cyber weapons firm NSO Group, raising concerns about control and accountabilityThe U.S. decision to blacklist Israeli cyber weapons firm NSO Group has raised concerns about foreign ownership and control, potential loss of clients and employees, and accountability for damage caused by these weapons.

      The U.S. government's decision to blacklist Israeli cyber weapons firm NSO Group is seen by some as part of a larger plan to limit Israel's advantage in cyber warfare. NSO's future is uncertain due to its reliance on American technology and potential loss of clients and employees. Israeli officials fear a strategic takeover of the company by a foreign entity, which could lead to a loss of control over the use and development of these weapons. Meanwhile, American companies, including some with ties to intelligence and law enforcement agencies, are reportedly interested in buying NSO. This could potentially result in the company's products being sold to American agencies, raising concerns about accountability and responsibility for the damage caused by these weapons. The lawsuit filed by Facebook against NSO over alleged hacking of WhatsApp accounts adds to the complexity of the issue, with Facebook arguing that NSO was an active participant in the hacks. The debate highlights the complex and evolving nature of the cyber weapons industry and the potential implications of foreign ownership and control.

    • Facebook vs NSO: Complex Relationship RevealedFacebook discovered NSO showcased Phantom to FBI using a hacked US phone number, challenging NSO's adherence to US regulations

      Facebook's legal battle against NSO Group, the Israeli cyber surveillance firm, revealed a complex relationship between the two parties. Facebook initially believed it had evidence to disprove NSO's claim that they do not hack American phone numbers. However, it was later discovered that an attack on a US phone number was part of NSO's demonstrations to the FBI, showcasing Phantom, a system designed for American law enforcement agencies to monitor domestic smartphones. This revelation challenges the notion of NSO strictly adhering to US regulations and highlights the intricacy of the relationship between tech companies and surveillance firms.

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