NSO Group, the Israeli firm behind the controversial spyware tool Pegasus, is facing multiple challenges that could have significant implications for its future. The company, which was blacklisted by the US government in November 2021, has been accused of creating and selling a powerful zero-click spyware tool that has been used to target and track individuals such as government officials, human rights workers, journalists, and activists around the world.
The US government’s blacklisting of NSO Group severely restricted the company’s ability to operate by prohibiting the transfer of US technology to the firm. In December 2021, the company faced another blow when its spyware was found on the phones of at least nine US State Department employees. These incidents strained NSO Group’s relationship with the Biden administration even further.
In addition to the government actions against NSO Group, the company is also grappling with a growing number of lawsuits. One notable lawsuit was filed by Hanan Elatr, the widow of murdered Washington Post journalist Jamal Khashoggi. Elatr claims that NSO Group’s Pegasus spyware violated US hacking laws and was used to track her and Khashoggi before his killing in 2018. Elatr alleges that the spyware caused immense harm to her, including the loss of her husband, safety, privacy, autonomy, financial stability, and career.
NSO Group is also facing legal challenges from other high-profile entities. Apple filed a lawsuit against the company in November 2021, accusing it of targeting its users with Pegasus spyware. The suit is ongoing, and it highlights the ongoing threat posed by NSO Group’s spyware. Additionally, Meta-owned WhatsApp was granted permission by the US Supreme Court in January to proceed with its suit against NSO Group for spyware damages.
Despite the legal troubles, there are investors who see an opportunity in NSO Group. According to reports, a group of investors, including Robert Simonds, a US investor known for producing Adam Sandler movies, and William “Beau” Wrigley, an heir to the chewing-gum fortune, are considering buying the assets of NSO Group. However, the potential sale raises concerns about placing powerful surveillance technology in the hands of individuals without sufficient expertise or a history of involvement in the cyber industry.
The potential sale of NSO Group’s assets may face additional challenges. The Israeli government closely regulates the company and could intervene in any sell-off of its technology. The acquisition would likely face scrutiny from Israeli authorities, ensuring compliance with regulatory requirements and national security considerations.
There is speculation that Simonds, one of the potential buyers, has privately pledged to hand over the surveillance technology to the “Five Eyes” alliance, a collaboration between intelligence agencies in Australia, Canada, New Zealand, the UK, and the US. However, despite this pledge, concerns about the misuse and proliferation of NSO Group’s spyware technology remain. The acquisition could lead to an increase in targeted attacks, surveillance activities, and potential abuse.
It is worth noting that the value of NSO Group and its Pegasus spyware may have already peaked. The trend in the spyware space is moving towards open-source tools, which make surveillance tools readily available and drive down the value of proprietary products like Pegasus. Open-source spyware is becoming more mainstream, with tools being found on online repositories and communities.
While NSO Group continues to face these challenges, the squeeze on its business and reputation persists. The outcome of the lawsuits, the potential sale of its assets, and the evolving nature of the spyware landscape will determine the future of NSO Group and its powerful Pegasus tool.