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Pegasus Spyware And Citizen Surveillance: Here's What You Should Know


Pegasus Spyware and Citizen Surveillance: Here's What You Should Know


Pegasus Spyware and Citizen Surveillance: Here's What You Should Know

For digital spying technology, it's a doozy of a case. Security researchers have revealed evidence of attempted or successful installations of Pegasus, software made by Israel-based cybersecurity company NSO Group, on phones belonging to activists, rights workers, journalists and businesspeople. They appear to have been targets of secret surveillance by software that's intended to help governments pursue criminals and terrorists, and as the months go by, more and more Pegasus infections are emerging.

The most recent revelation is that Pegasus infected the phones of at least 30 Thai activists, according to a July report from Citizen Lab, a Canadian security organization at the University of Toronto. Apple warned those with infected phones in November.

To try to thwart such attacks, Apple has built a new Lockdown Mode into iOS 16, its iPhone software update due to arrive later in 2022, and into its upcoming MacOS Ventura.

The US government is one of the most powerful forces unleashed against Pegasus — even though the CIA and FBI were Pegasus customers, as reported by The New York Times in January. The US Justice Department has launched a criminal investigation, The Guardian said in February, after a whistleblower said NSO Group offered "bags of cash" for sensitive mobile phone data from a US tech firm, Mobileum. The spyware was found on the phones of at least nine State Department officials who were either based in Uganda or involved in matters associated with the African country, Reuters and The New York Times reported in December. 

Pegasus is the latest example of how vulnerable we all are to digital prying. Our phones store our most personal information, including photos, text messages and emails. Spyware can reveal directly what's going on in our lives, bypassing the encryption that protects data sent over the internet.

Pegasus has been a politically explosive issue that's put Israel under pressure from activists and from governments worried about misuse of the software. In November, the US federal government took much stronger action, blocking sale of US technology to NSO by putting the company on the government's Entity List. NSO has suspended some countries' Pegasus privileges but has sought to defend its software and the controls it tries to place on its use. NSO Group didn't respond to a request for comment, and the Justice Department declined to comment.

Here's what you need to know about Pegasus.

What is NSO Group?

It's an Israel-based company that licenses surveillance software to government agencies. The company says its Pegasus software provides a valuable service because encryption technology has allowed criminals and terrorists to go "dark." The software runs secretly on smartphones, shedding light on what their owners are doing. Other companies provide similar software.

Hulio co-founded the company in 2010. NSO also offers other tools that locate where a phone is being used, defend against drones and mine law enforcement data to spot patterns.

NSO has been implicated by previous reports and lawsuits in other hacks, including a reported hack of Amazon founder Jeff Bezos in 2018. A Saudi dissident sued the company in 2018 for its alleged role in hacking a device belonging to journalist Jamal Khashoggi, who had been murdered inside the Saudi embassy in Turkey that year.

New Yorker coverage details some of NSO Group's inner workings, including its argument that Pegasus is similar to military equipment that countries routinely sell to other countries, the company's tight ties to the Israeli government and its recent financial difficulties. It also revealed that NSO employees posted on the wall a detailed Google analysis of one Pegasus attack mechanism that concludes its NSO's abilities "rival those previously thought to be accessible to only a handful of nation states."

In the case of the Thai activists, NSO Group didn't comment specifically but told the Washington Post, "Politically motivated organizations continue to make unverifiable claims against NSO."

What is Pegasus?

Pegasus is NSO's best-known product. It can be installed remotely without a surveillance target ever having to open a document or website link, according to The Washington Post. Pegasus reveals all to the NSO customers who control it — text messages, photos, emails, videos, contact lists — and can record phone calls. It can also secretly turn on a phone's microphone and cameras to create new recordings, The Washington Post said.

General security practices like updating your software and using two-factor authentication can help keep mainstream hackers at bay, but protection is really hard when expert, well-funded attackers concentrate their resources on an individual. And Pegasus installations have employed "zero click" attacks that take advantage of vulnerabilities in software like Apple Messages or Meta's WhatsApp to silently install software. 

Pegasus isn't supposed to be used to go after activists, journalists and politicians. "NSO Group licenses its products only to government intelligence and law enforcement agencies for the sole purpose of preventing and investigating terror and serious crime," the company says on its website. "Our vetting process goes beyond legal and regulatory requirements to ensure the lawful use of our technology as designed."

Human rights group Amnesty International, however, documents in detail how it traced compromised smartphones to NSO Group. Citizen Lab said it independently validated Amnesty International's conclusions after examining phone backup data and since 2021 has expanded its Pegasus investigations.

In September, though, Apple fixed a security hole that Pegasus exploited for installation on iPhones. Malware often uses collections of such vulnerabilities to gain a foothold on a device and then expand privileges to become more powerful. NSO Group's software also runs on Android phones.

Why is Pegasus in the news?

Forbidden Stories, a Paris journalism nonprofit, and Amnesty International, a human rights group, shared with 17 news organizations a list of more than 50,000 phone numbers for people believed to be of interest to NSO customers.

The news sites confirmed the identities of many of the individuals on the list and infections on their phones. Of data from 67 phones on the list, 37 exhibited signs of Pegasus installation or attempted installation, according to The Washington Post. Of those 37 phones, 34 were Apple iPhones.

The list of 50,000 phone numbers included 10 prime ministers, three presidents and a king, according to an international investigation released in mid-July by The Washington Post and other media outlets, though there's no proof that being on the list means an NSO attack was attempted or successful.

The episode hasn't helped Apple's reputation when it comes to device security. "We take any attack on our users very seriously," Federighi said. The company said it'll donate $10 million and any damages from the lawsuit to organizations that are advocating for privacy and are pursuing research on online surveillance. That's a drop in the bucket for Apple, which reported a profit of $20.5 billion for its most recent quarter, but it can be significant for much smaller organizations, like Citizen Lab.

Whose phones did Pegasus infect?

In April, Citizen Lab also revealed that Pegasus infected the phones of at least 51 people in the Catalonia region of Spain. NSO Group Chief Executive Shalev Hulio told The New Yorker, which covered the hacks in depth, that Spain has procedures to ensure such use is legal, but Citizen Lab said Pegasus attacks targeted the phone of Jordi SolĂ©, a pro-independence member of the European Parliament, digital security researcher Elies Campo and Campo's parents, according to the New Yorker. Catalonia is seeking political independence from Spain, but Spanish police have cracked down on the independence movement.

In addition to Mangin, two journalists at Hungarian investigative outlet Direkt36 had infected phones, The Guardian reported. 

A Pegasus attack was launched on the phone of Hanan Elatr, wife of murdered Saudi columnist Jamal Khashoggi, The Washington Post said, though it wasn't clear if the attack succeeded. But the spyware did make it onto the phone of Khashoggi's fiancee, Hatice Cengiz, shortly after his death.

Seven people in India were found with infected phones, including five journalists and one adviser to the opposition party critical of Prime Minister Narendra Modi, The Washington Post said.

And six people working for Palestinian human rights groups had Pegasus-infected phones, Citizen Lab reported in November.

What are the consequences of the Pegasus situation?

The US cut off NSO Group as a customer of US products, a serious move given that the company needs computer processors, phones and developer tools that often come from US companies. NSO "supplied spyware to foreign governments" that used it to maliciously target government officials, journalists, businesspeople, activists, academics and embassy workers. These tools have also enabled foreign governments to conduct transnational repression," the Commerce Department said.

Apple sued NSO Group  in November, seeking to bar the company's software from being used on Apple devices, require NSO to locate and delete any private data its app collected, and disclose the profits from the operations. "Private companies developing state-sponsored spyware have become even more dangerous," said Apple software chief Craig Federighi. That suit came after Meta's WhatsApp sued NSO Group in 2019.

French President Emmanuel Macron changed one of his mobile phone numbers and requested new security checks after his number appeared on the list of 50,000 numbers, Politico reported. He convened a national security meeting to discuss the issue. Macron also raised Pegasus concerns with Israeli Prime Minister Naftali Bennett, calling for the country to investigate NSO and Pegasus, The Guardian reported. The Israeli government must approve export licenses for Pegasus.

Israel created a review commission to look into the Pegasus situation. And on July 28, Israeli defense authorities inspected NSO offices in person.

European Commission chief Ursula von der Leyen said if the allegations are verified, that Pegasus use is "completely unacceptable." She added, "Freedom of media, free press is one of the core values of the EU."

The Nationalist Congress Party in India demanded an investigation of Pegasus use.

Edward Snowden, who in 2013 leaked information about US National Security Agency surveillance practices, called for a ban on spyware sales in an interview with The Guardian. He argued that such tools otherwise will soon be used to spy on millions of people. "When we're talking about something like an iPhone, they're all running the same software around the world. So if they find a way to hack one iPhone, they've found a way to hack all of them," Snowden said.

What does NSO have to say about this?

NSO acknowledges its software can be misused. It cut off two customers in recent 12 months because of concerns about human rights abuses, according to The Washington Post. "To date, NSO has rejected over US $300 million in sales opportunities as a result of its human rights review processes," the company said in a June transparency report.

However, NSO strongly challenges any link to the list of phone numbers. "There is no link between the 50,000 numbers to NSO Group or Pegasus," the company said in a statement.

"Every allegation about misuse of the system is concerning me," Hulio told the Post. "It violates the trust that we give customers. We are investigating every allegation."

In a statement, NSO denied "false claims" about Pegasus that it said were "based on misleading interpretation of leaked data." Pegasus "cannot be used to conduct cybersurveillance within the United States," the company added.

Regarding the alleged infection of State Department phones, NSO Group didn't immediately respond to a request for comment. But it told Reuters it canceled relevant accounts, is investigating, and will take legal action if it finds misuse.

NSO will try to reverse the US government's sanction. "We look forward to presenting the full information regarding how we have the world's most rigorous compliance and human rights programs that are based the American values we deeply share, which already resulted in multiple terminations of contacts with government agencies that misused our products," an NSO spokesperson said.

In the past, NSO had also blocked Saudi Arabia, Dubai in the United Arab Emirates and some Mexican government agencies from using the software, The Washington Post reported.

How can I tell if my phone has been infected?

Amnesty International released an open-source utility called MVT (Mobile Verification Toolkit) that's designed to detect traces of Pegasus. The software runs on a personal computer and analyzes data including backup files exported from an iPhone or Android phone.


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Twitter Shareholders To Vote In September On Musk Deal: What You Need To Know


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Twitter Shareholders to Vote in September on Musk Deal: What You Need to Know


Twitter Shareholders to Vote in September on Musk Deal: What You Need to Know

Twitter shareholders are expected to vote in September on billionaire Elon Musk's $44 billion proposal to buy the influential social network after he tried to back out of the deal.

Twitter scheduled a meeting for shareholders to vote on the proposal on Sept. 13 at 10 a.m. PT, according to a regulatory filing on Tuesday. The company's board of directors is urging shareholders to approve the deal.

"We are committed to closing the merger on the price and terms agreed upon with Mr. Musk. Your vote at the special meeting is critical to our ability to complete the merger," the filing stated. Under the deal, shareholders will receive $54.20 in cash for every share of Twitter's stock they own. 

Twitter and Musk are currently embroiled in a legal battle because the billionaire said in July he no longer wanted to buy Twitter and take the company private. Musk's attempt to back out of acquiring the social media site has raised concerns about Twitter's future. 

Musk has said the deal can't move forward until he gets proof that fewer than 5% of Twitter's 229 million daily users in the first quarter were fake or spam-focused, an important metric for understanding Twitter's ads business. But Twitter alleges in a lawsuit against Musk that the billionaire is trying to pull out of the deal because his personal wealth has fallen so the acquisition has become more expensive for him. 

Here's what you need to know about the ongoing saga between Musk and Twitter:

Why is Musk trying to end the deal?

Musk, who leads Tesla and Space X, appears to have concerns about the future of Twitter's business, even though he said at a TED2022 conference that he didn't care about the "economics" of buying Twitter.

A letter sent by Musk's lawyer claims Twitter violated parts of its agreement with Musk, and it outlines information the company allegedly failed to provide the billionaire, including about the social network's calculations of daily users. Twitter makes most of its money from ad sales, so the number of people who can see ads is an important metric for the company.

"This information is fundamental to Twitter's business and financial performance and is necessary to consummate the transactions contemplated by the Merger Agreement because it is needed to ensure Twitter's satisfaction of the conditions to closing, to facilitate Mr. Musk's financing and financial planning for the transaction, and to engage in transition planning for the business," the letter said.

Since Musk reached an agreement with Twitter, the company's stock price has fallen and there are fears about a potential recession. Twitter has fired key executives, frozen hiring and laid off about 30% of its talent acquisition team. 

Twitter isn't buying Musk's explanation and alleges in the lawsuit his information requests were designed to "designed to try to tank the deal."

Why did Musk want to buy Twitter in the first place?

Musk is an avid user of the service but also one of its loudest critics.

Musk tweeted a poll to his followers in March that asked whether users believed Twitter was protecting free speech. He said the poll results, in which roughly 70% of 2 million respondents answered "no," would be "very important." 

"Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy. What should be done?" Musk said in a follow-up tweet. Then he made an offer to buy Twitter, noting that he believed Twitter needed to be private to accomplish his goal.

The guarantee of free speech in the US Constitution's First Amendment applies to the government censoring speech but not to companies such as Twitter, which have their own rules about what isn't allowed on their sites.

Musk referenced free speech again when Twitter announced the deal in April. He also said he wanted to enhance Twitter with new features and promised he would make the service's algorithms open source, defeat spam bots and authenticate all humans.

"Twitter has tremendous potential," Musk wrote. "I look forward to working with the company and the community of users to unlock it."

Progressives have criticized social media companies for failing to crack down on harmful content such as hate speech and harassment. Conservatives claim their speech is being censored. (Twitter has long denied allegations it censors conservatives.) 

On April 19, Musk tweeted that he thinks social media policies "are good if the most extreme 10% on left and right are equally unhappy." He's also said he would reverse the ban on former US President Donald Trump who was booted from the platform after the Jan. 6 Capitol Hill riots because of concerns about inciting violence. Trump has said he doesn't plan to return to Twitter even if the company lifts the ban.

What has Twitter's response been?

Twitter says closing the deal is in the best interest of shareholders.

Initially, it seemed like Twitter was going to turn down the offer but the board started to take it more seriously when Musk offered details about how he would finance the deal. The company had adopted a defensive strategy known as the "poison pill" that would make it tougher for Musk to add to his stake in the company. The tactic allowed Twitter to accept a competing offer, if one emerged.

Twitter co-founder Jack Dorsey tweeted on April 15 that "as a public company, twitter has always been 'for sale.' that's the real issue." Twitter has dealt with leadership changes, layoffs and activist investors as a public company. After Twitter announced the deal, Dorsey said he didn't believe that anyone should own or run Twitter but taking it back from Wall Street is the "correct first step."

"Solving for the problem of it being a company however, Elon is the singular solution I trust," Dorsey tweeted. "I trust his mission to extend the light of consciousness."

A filing with the US Securities and Exchange Commission also shed more light on how the deal came together. Musk spoke to Twitter co-founder Jack Dorsey in March about the future of social media and decentralizing social media so users get more control over their data and what content they see.

Musk's effort to acquire Twitter has been a bumpy one. Musk rejected a seat on Twitter's board before offering to take the company private. Musk also had a conversation with Dorsey in early April in which Dorsey said he thought Twitter, a publicly traded company, would be better off as a private company, the filing shows.

How did Musk plan to pay for Twitter?

Even for Musk, who's worth about $220 billion, buying Twitter requires some financial juggling.

In an initial SEC filing on April 20, Musk said he had personally committed about $21 billion in equity financing. He also secured about $25.5 billion in debt financing through Morgan Stanley and other financial institutions. 

Since then, Musk has raised capital by selling $8.5 billion in Tesla shares, presumably for the deal, and lined up $7.1 billion from outside investors. According to a May 4 filing, those investors include Sequoia Capital and Oracle co-founder Larry Ellison. (Ellison sits on Tesla's board of directors.) Saudi Arabian investor Prince Alwaleed bin Talal Bin Abdulaziz Alsaud also agreed to pledge his stake of roughly 35 million shares to the deal.

On May 24, Musk pledged more equity to the deal. He's now willing to put $33.5 billion toward the acquisition.

What happens next?

Twitter shareholders are scheduled vote on the deal at a special meeting in September. Meanwhile, Twitter is asking the Delaware Court of Chancery to enforce its agreement with Musk. A trial is expected to happen over five days in October. Killing the deal could cost Musk $1 billion because of a termination fee that's part of the agreement, according to an SEC filing on April 25.


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