Spyware
Pegasus appears to be plummeting to earth, with an announcement from Apple that it is suing the company behind the spyware and reports that it's in financial trouble. And to add to the NSO Group's woes, Israel has slashed the number of countries to which spyware can be exported officially.
Apple's lawsuit describes NSO as "amoral 21st century mercenaries who have created highly sophisticated cyber-surveillance machinery that invites routine and flagrant abuse." At the same time, Apple has begun notifying users who it believes are being targeted by state-sponsored attackers. Journalists in El Salvador and activists in Thailand have already received notifications. "It is unacceptable to weaponize powerful state-sponsored spyware against those who seek to make the world a better place,” Apple said. “We will continue to work tirelessly to protect our users from abusive state-sponsored actors like NSO Group.” It would also help if Apple stopped releasing products that are riddled with vulnerabilities.
In Israel, where the NSO Group and many of its competitors are based, the government reduced by two-thirds the number of countries to which spyware products can be officially exported. The cut-down list, obtained by Calcalist, includes only 37 democracies and removes the autocratic regimes that were some of the spyware industry's biggest customers. The Israeli decision comes after the US imposed restrictions on NSO and some of its competitors, and there are clear signs that it is at least partly the result of considerable - and unusual - diplomatic pressure.
All of which has left the NSO Group in a pickle. It lost its new CEO a week after he was appointed, it owes $500 million and it's reported to have exhausted its credit lines. Bloomberg reports that Wall Street is treating it as a distressed asset. But before anyone opens the champagne, it's crucial to understand that the technology we use remains deeply flawed, attackers continue to want to exploit those flaws, and even if NSO collapses, the skills of its employees will be in demand elsewhere.