While Israeli companies are proudly displaying their security wares at the Paris Air Show, including cyber systems, the dark side of some Israeli defense exports has been exposed in the US. According to a report yesterday in "The New York Times," a spy program developed by Israeli NSO Group Technologies is being used to suppress opponents of the government in Mexico. The president of Mexico is Enrique Pena Nieto.
The program, named Pegasus, is used to break into smartphones and eavesdrops and monitors calls, text messages, e-mails, etc. The program can operate the microphones and cameras of devices without the owners being aware of it.
According to "The New York Times," the Pegasus program was purchased by three Mexican government agencies in 2011 for $80 million, which have since used it to monitor opponents of the government, including journalists, social activists, and lawyers trying to combat corruption in Mexico. Reports in the US said that the Mexican authorities used the program to monitor the families of opponents of the government.
The Pegasus program is classed as offensive cyber. It makes it possible to target a telephone on which the Pegasus user wants to conduct surveillance, regardless of the telephone's location and the company that is providing telephone service.
This is not the first time that NSO's software has made the headlines. Last summer, it was reported that Apple Computers had to issue a special security update for its iOS operating system due to penetration of iPhones by Pegasus.
NSO said in response, "The company develops products aimed at assisting governments in combating crime and terrorism. The company sells its products only to authorized government agencies, and complies with all defense export laws.
"The company does not operate its systems for its customers, and is not exposed to the specific use made of the systems by customers. The licensing agreements between the company and its customers allow them to use the product solely for the purpose of investigating criminal or terrorist events. The company takes any alleged misuse of its product seriously in both the ethical and the legal context. In case of a contract violation by any of its customers, the company will take the necessary measures."
In its statement, the company did not comment on the reports concerning the malicious use of its program in Mexico, and did not disclose whether it had taken any steps in the matter.
The Ministry of Defense, which is responsible for the export of such systems through the Defense Export Controls Agency, did not respond to questions from "Globes" on the subject. As a matter of policy, the Ministry of Defense does not comment on individual defense export questions, including the names of companies and countries, even if it is suspected that exports have been made to countries that violate human rights. Israeli defense exports totaled $5.6 billion in 2016.
Founded in 2010 by a group of IDF veterans of Unit 8200, NSO is based in Herzliya. The company founders are Niv Carmi, Omri Lavie, and CEO Shalev Hulio.
Private equity fund Francisco Partners acquired 70% of NSO Group in 2014 at an estimated company value of $130 million. It was reported a month ago that the fund was trying to sell its controlling interest in NSO at a $1 billion company value.
Published by Globes [online], Israel Business News - www.globes-online.com - on June 21, 2017
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