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Apple Sues NSO Group To Curb The Abuse Of State-Sponsored Spyware

Apple also announced a $10 million contribution to support cybersurveillance researchers and advocates. Apple Sues NSO Group To Curb The Abuse Of State-Sponsored Spyware

Apple today filed a lawsuit against NSO Group and its parent company to hold it accountable for the surveillance and targeting of Apple users. The complaint provides new information on how NSO Group infected victims’ devices with its Pegasus spyware.

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To prevent further abuse and harm to its users, Apple is also seeking a permanent injunction to ban NSO Group from using any Apple software, services, or devices.

NSO Group creates sophisticated, state-sponsored surveillance technology that allows its highly targeted spyware to surveil its victims. These attacks are only aimed at a very small number of users, and they impact people across multiple platforms, including iOS and Android.

Researchers and journalists have publicly documented a history of this spyware being abused to target journalists, activists, dissidents, academics, and government officials.

“State-sponsored actors like the NSO Group spend millions of dollars on sophisticated surveillance technologies without effective accountability.

That needs to change,” said Craig Federighi, Apple’s senior vice president of Software Engineering. “Apple devices are the most secure consumer hardware on the market — but private companies developing state-sponsored spyware have become even more dangerous.

While these cybersecurity threats only impact a very small number of our customers, we take any attack on our users very seriously, and we’re constantly working to strengthen the security and privacy protections in iOS to keep all our users safe.”

NSO Group’s FORCEDENTRY Exploit

Apple’s legal complaint provides new information on NSO Group’s FORCEDENTRY, an exploit for a now-patched vulnerability previously used to break into a victim’s Apple device and install the latest version of NSO Group’s spyware product, Pegasus.

The exploit was originally identified by the Citizen Lab, a research group at the University of Toronto.

The spyware was used to attack a small number of Apple users worldwide with dangerous malware and spyware. Apple’s lawsuit seeks to ban NSO Group from further harming individuals by using Apple’s products and services.

The lawsuit also seeks redress for NSO Group’s flagrant violations of US federal and state law, arising out of its efforts to target and attack Apple and its users.

NSO Group and its clients devote the immense resources and capabilities of nation-states to conduct highly targeted cyberattacks, allowing them to access the microphone, camera, and other sensitive data on Apple and Android devices.

To deliver FORCEDENTRY to Apple devices, attackers created Apple IDs to send malicious data to a victim’s device — allowing NSO Group or its clients to deliver and install Pegasus spyware without a victim’s knowledge. Though misused to deliver FORCEDENTRY, Apple servers were not hacked or compromised in the attacks.

Apple makes the most secure mobile devices on the market, and constantly invests in strengthening privacy and security protections for its users.

For example, researchers have found that other mobile platforms have 15 times more malware infections than iPhone,2 and a recent study showed that less than 2 percent of mobile malware targets iOS devices.

iOS 15 includes a number of new security protections, including significant upgrades to the BlastDoor security mechanism.

While NSO Group spyware continues to evolve, Apple has not observed any evidence of successful remote attacks against devices running iOS 15 and later versions. Apple urges all users to update their iPhone and always use the latest software.

“At Apple, we are always working to defend our users against even the most complex cyberattacks. The steps we’re taking today will send a clear message: In a free society, it is unacceptable to weaponize powerful state-sponsored spyware against those who seek to make the world a better place,” said Ivan Krstić, head of Apple Security Engineering and Architecture.

“Our threat intelligence and engineering teams work around the clock to analyze new threats, rapidly patch vulnerabilities, and develop industry-leading new protections in our software and silicon.

Apple runs one of the most sophisticated security engineering operations in the world, and we will continue to work tirelessly to protect our users from abusive state-sponsored actors like NSO Group.”

Apple’s Continuing Efforts to Protect Its Users

Apple commends groups like the Citizen Lab and Amnesty Tech for their groundbreaking work to identify cybersurveillance abuses and help protect victims.

To further strengthen efforts like these, Apple will be contributing $10 million, as well as any damages from the lawsuit, to organizations pursuing cybersurveillance research and advocacy.

Apple will also support the accomplished researchers at the Citizen Lab with pro-bono technical, threat intelligence, and engineering assistance to aid their independent research mission, and where appropriate, will offer the same assistance to other organizations doing critical work in this space.

 

“Mercenary spyware firms like NSO Group have facilitated some of the world’s worst human rights abuses and acts of transnational repression, while enriching themselves and their investors,” said Ron Deibert, director of the Citizen Lab at the University of Toronto.

“I applaud Apple for holding them accountable for their abuses, and hope in doing so Apple will help to bring justice to all who have been victimized by NSO Group’s reckless behavior.”

Apple is notifying the small number of users that it discovered may have been targeted by FORCEDENTRY. Any time Apple discovers activity consistent with a state-sponsored spyware attack, Apple will notify the affected users in accordance with industry best practices.

 

Apple believes privacy is a fundamental human right, and security is a constant focus for teams across the company. For years, Apple has led the industry with new protections to disrupt sophisticated attacks and defend its users, including features such as pointer authentication codes (PAC), BlastDoor, and the Page Protection Layer (PPL).

For more information about Apple’s platform security, visit support.apple.com/guide/security/welcome/web.

Apple Notified State Department Employees of Phone Hacking Linked To NSO Group Software

Foreign service officers in Uganda among those informed their iPhones were compromised in attack.

Apple Inc. last week notified 11 U.S. State Department employees in Uganda that their iPhones were hacked, and investigators have linked the attack to a tool developed by NSO Group, an Israeli technology company that was blacklisted by the Biden administration, according to a person familiar with the matter.

Some of the targeted State Department employees were foreign service officers who are U.S. citizens, while others appear to be locals working for the embassy, the person familiar with the matter said. The hacked phones were linked to State Department email addresses, the person said.

The alerts appear to be the first confirmed cases of NSO Group’s mobile hacking tool, known as Pegasus, being used to successfully target American officials.

The Biden administration last month placed NSO Group on an export prohibition list that restricts the firm from obtaining some types of technology from the U.S.

That came after a recent series of articles published by a global consortium of journalism organizations alleged that Pegasus, one of NSO Group’s main software intrusion tools, has been used by dozens of law-enforcement and intelligence customers around the world to target and break into cellphones belonging to politicians, human-rights activists and journalists.

“Once the inquiry was received, and before any investigation under our compliance policy, we have decided to immediately terminate relevant customers’ access to the system, due to the severity of the allegations,” NSO Group said in a statement. “To this point, we haven’t received any information nor the phone numbers, nor any indication that NSO’s tools were used in this case.”

NSO Group didn’t identify the customer or customers whose access to its tools were terminated and said it would cooperate with any relevant government authorities investigating the matter. Apple has a policy of notifying users it suspects have been targeted by state-sponsored attackers.

Those notifications don’t include who was behind the effort. Reuters first reported that at least nine State Department employees had been hacked by an unknown NSO Group customer.

The State Department declined to confirm the specific allegations, but said it closely monitors the cybersecurity conditions of its workers.

Apple last week sued NSO Group, alleging the company had engaged in “concerted efforts in 2021 to target and attack Apple customers, Apple products and servers and Apple through dangerous malware and spyware.” The suit seeks to bar NSO Group from using Apple’s products.

It follows a similar lawsuit that the WhatsApp messaging service brought in 2019 alleging NSO Group had sent malware to 1,400 of its users. WhatsApp is owned by Meta Platforms Inc., formerly known as Facebook Inc.

NSO Group has said its technology has been used to save lives around the globe by helping law enforcement and intelligence agencies in countries that respect privacy and the rule of law to pursue terrorists and other criminals.

The company has also said it has terminated contracts with governments that have abused its software and taken steps to prevent abuse.

But that has not appeased the company’s critics, who have for years accused NSO Group of being one of the most prominent vendors in an expanding commercial marketplace for hacking tools.

While some governments often develop their own hacking tools at intelligence agencies like the National Security Agency, others have increasingly sought to purchase digital surveillance tools from companies that specialize in building and selling them.

“Companies that enable their customers to hack U.S. government employees are a threat to America’s national security and should be treated as such by the government,” Sen. Ron Wyden, a Democrat on the Senate Intelligence Committee who has advocated for a crackdown on hacking tool vendors like NSO Group, said Friday in response to news of the State Department notifications.

NSO Group has said that there are certain restrictions on the use of its tools, including that they are blocked from working on U.S. phone numbers. In its statement Friday, the firm acknowledged that “once the software is sold to the licensed customer, NSO has no way to know who the targets of the customers are, as such, we were not and could not have been aware of this case.”

Pegasus spyware allows pervasive surveillance once a phone is compromised, essentially creating a silent spying device that can access a phone’s files and messages as well as its microphone and camera.

To install it, the NSO Group has developed a number of sophisticated techniques, including one “zero-click” method discovered earlier this year that could infect an iPhone without requiring the owner to click a link or open a file, according to researchers who have studied the software.

Updated: 4-11-2023

New Spyware Firm Said To Have Helped Hack iPhones Around the Globe

Apple Sues NSO Group To Curb The Abuse Of State-Sponsored Spyware

Tools linked to QuaDream of Israel highlight continued use of secret software.

Hacking tools sold by a little-known Israeli vendor have been used to break into the iPhones of journalists and political opposition figures by silently exploiting Apple Inc.’s iPhone software, cybersecurity researchers said.

The intrusions are linked to QuaDream Ltd., which markets spyware under the name “Reign,” according to new research published Tuesday by Citizen Lab, a research group at the University of Toronto, and Microsoft Corp.

Spyware makers have operated largely under the radar for years, but U.S. authorities and tech companies have become increasingly concerned about the misuse of their hacking tools.

In particular, another Israeli company, NSO Group, has attracted scrutiny, with investigators saying that its software has been deployed to attack U.S. officials as well as journalists, activists and politicians worldwide.

In 2021, Microsoft linked the Israeli company Candiru to attacks on more than 100 victims, including politicians, human-rights activists and journalists.

“The explosive growth of private ‘cyber mercenary’ companies poses a threat to democracy and human rights around the world,” said Amy Hogan-Burney, the general manager of Microsoft’s Cybersecurity Policy & Protection.

QuaDream is the latest spyware company to face questions about its software and how it is used. The company’s software essentially granted assailants full surveillance capabilities over a user’s device, including the ability to record phone calls, capture photos and read messages, said Bill Marczak, a researcher with Citizen Lab.

QuaDream’s software was as sophisticated as NSO Group’s and took pains to obscure its fingerprints in computer code deployed on infected devices, Mr. Marczak said.

Law-enforcement agencies say that there are legitimate uses for spyware products—to conduct surveillance of criminal or terrorist organizations, for example—but the Biden administration has recently taken steps to ensure that they aren’t used without proper oversight and legal authorization.

Apple Sues NSO Group To Curb The Abuse Of State-Sponsored Spyware

The NSO Group has previously said its software is used only lawfully and is licensed to government intelligence and law enforcement for investigations. An NSO spokesman declined to comment for this article.

Representatives for QuaDream and Candiru didn’t respond to requests for comment.

Although Citizen Lab was unable to obtain the software used to attack the iPhone, they said they were able to draw some conclusions by examining the digital evidence left on at least five previously hacked phones along with two samples of the spyware provided by Microsoft.

Mr. Marczak and other researchers determined that the attack compromised phones running versions of Apple’s iOS 14 iPhone operating system, which was state-of-the-art between 2020 and 2021, and appeared to be connected with calendar invitations sent to the victims.

Citizen Lab’s analysis found that the attack worked without requiring any user interaction—what is known as a zero-click attack—meaning that victims would be defenseless against it. “There’s nothing the victim has to do” to be infected, Mr. Marczak said. The research group didn’t provide the identities of suspected victims.

In July of last year, Apple introduced a new feature, called Lockdown Mode, designed to mitigate the risks of zero-click attacks.

Without samples of the attack code, it isn’t possible to determine whether the QuaDream attack has been patched, according to Citizen Lab.

The attack hasn’t been launched against more-recent versions of Apple’s operating system, a sign that the bug—or bugs—that it leveraged to burrow into the iPhone may have been fixed, Mr. Marczak said.

Apple hasn’t detected signs that the attack described by Citizen Lab was used after March 2021, when iOS 14.4.2 shipped, a company spokesman said. Attacks such as the one described by Citizen Lab typically cost millions of dollars to develop, have a short shelf life and don’t affect most iPhone users, he said.

QuaDream’s operator locations were found in a range of countries, Citizen Lab said. They are Bulgaria, Czech Republic, Hungary, Ghana, Israel, Mexico, Romania, Singapore, United Arab Emirates and Uzbekistan.

Reports of the growing use of hacking tools purchased from vendors in Israel and elsewhere have fueled calls within Europe and in the U.S. to restrict their use.

Last month, President Biden issued a first-of-its-kind executive order limiting the use of commercial spyware within the federal government, though it doesn’t outright prohibit its use, either for offensive purposes or testing.

The administration also disclosed that it believed at least 50 U.S. personnel working overseas had been compromised by such spyware and that it expected that number to grow as officials continued to investigate.

NSO Group has faced years of international scrutiny for its selling of a mobile-device hacking tool known as Pegasus, which has been used to break into cellphones belonging to politicians, activists and journalists, according to Facebook-parent Meta Platforms Inc., Citizen Lab and others.

The Biden administration blacklisted both NSO Group and Candiru in 2021, but senior administration officials said the new executive order was needed to keep up with a rapidly evolving international spyware market.

Instead of publicly listing companies barred from selling to the U.S. government, the administration seeks to create a system of rules that agencies will internally consider to determine whether vendors pose a threat to national security or human rights and should be off limits.

Updated: 5-26-2023

Israeli Cyber Company NSO Group Has New Ownership After U.S. Blacklist

The maker of controversial Pegasus software used to target government officials and activists has been pushed into a restructuring by its lenders.

NSO Group, the Israeli cybersecurity company blacklisted by the U.S. for its sale of hacking tools to authoritarian regimes, is under new ownership after lenders forced a change of control with plans to keep its controversial spyware business going, according to people familiar with the matter.

Creditors including Credit Suisse and Senator Investment Group moved earlier this year to foreclose on NSO’s parent company, Luxembourg-domiciled NorthPole, according to people familiar with the matter.

The takeover wiped out NSO’s previous owners, including a private-equity fund started by Novalpina Capital that bought the company in a deal that valued it at roughly $1 billion in 2019, the people familiar said.

The lenders have been working with Omri Lavie, a co-founder of NSO, after foreclosing on the parent company, the people said. A Luxembourg-based holding company controlled by Lavie called Dufresne Holdings is listed as the sole shareholder of NSO’s parent company, according to corporate filings.

NSO has been in financial distress since 2021, when the Biden administration blacklisted the company over allegations that its Pegasus surveillance software had been used inappropriately.

The company’s lenders believe that NSO has valuable intellectual property and should continue operating rather than shut down and liquidate, even though its finances are in turmoil, people familiar with their thinking said.

They have agreed not to call NSO in default for failing to pay debts to them since the 2021 blacklist and have extended millions of dollars to help pay NSO’s expenses since then, the people said.

Lavie’s company is involved with day-to-day management at NSO and has fired a number of directors and officers across the NSO corporate umbrella, according to the people familiar with the matter and corporate filings.

“The company is managed directly by our CEO, Yaron Shohat. The lenders are currently in a process of restructuring the shareholders,” an NSO spokesperson said.

NSO’s new owners face the challenge of helping rehabilitate NSO’s business and image after years of criticism from privacy advocates who allege that NSO and similar companies sell tools that allow governments and other customers to target and break into cellphones belonging to politicians, human-rights activists and journalists.

The company has previously said that its software products are used by intelligence and law-enforcement agencies and that it has taken steps to prevent abuse, including by terminating contracts with some governments.

The Biden administration, other Western countries and the United Nations have criticized NSO for its governmental clients’ alleged abuses, while NSO has argued that it generally can’t control how its customers use its software.

NSO is the most visible company to sell ready-to-use hacking tools that can be deployed against common consumer technologies.

Its signature product, Pegasus, can extract data remotely from smartphones, offering countries without a homegrown cyber intelligence capability a way to collect digital information.

Founded in 2010 by three Israeli software engineers, NSO has been in private-equity hands for nearly a decade. In 2019, it was purchased by Novalpina Capital in a leveraged buyout funded with $500 million in debt.

NSO went into financial freefall after the Biden administration placed it on an export prohibition list in 2021 for allegedly selling spyware to foreign governments that use the tools to violate human rights and stifle dissent.

Last year, NSO was in talks to be acquired by several U.S. cybersecurity companies, but a deal never materialized.

The business has for years been considered a leading vendor in “zero-click” hacking tools, so called because of their ability to infiltrate targeted phones without needing a victim to click on a malicious link or attachment. Apple and other hardware makers have taken steps over the past year to attempt to protect against zero-click threats.

In an interview with The Wall Street Journal in January, Shohat, NSO’s CEO, said clients had sometimes abused its tools, even as he defended the need to provide law-enforcement and intelligence agencies with the means to hack into smartphones.

“I will not tell you that we never had mistakes, but we act responsibly,” he said. “We make sure that all of our customers understand what abuse means; understand what are the legitimate use cases for the tool.”

Allegations of misuse have continued to emerge, however. On Thursday, researchers from Amnesty International and other advocacy groups alleged that Pegasus was used to target several dozen Armenian activists’ and journalists’ smartphones during the country’s conflict with Azerbaijan between 2020 and 2022.

Some of the hacking identified occurred after NSO was put on the U.S. blacklist in 2021, the report alleged.

NSO said that it is unable to address any specific allegations related to the report and that the company “will investigate all credible allegations of misuse.”

 

 

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