Disrupted
EXCLUSIVE U.S. State Department phones hacked with Israeli company spyware
By Christopher Bing and Joseph Menn

https://www.reuters.com/technology/exclusive-us-state-department-phones-hacked-with-israeli-company-spyware-sources-2021-12-03/


WASHINGTON/SAN FRANCISCO, Dec 3 (Reuters) - Apple Inc iPhones of at least nine 
U.S. State Department employees were hacked by an unknown assailant using 
sophisticated spyware developed by the Israel-based NSO Group, according to 
four people familiar with the matter.

The hacks, which took place in the last several months, hit U.S. officials 
either based in Uganda or focused on matters concerning the East African 
country, two of the sources said.

The intrusions, first reported here, represent the widest known hacks of U.S. 
officials through NSO technology. Previously, a list of numbers with potential 
targets including some American officials surfaced in reporting on NSO, but it 
was not clear whether intrusions were always tried or succeeded.

Reuters could not determine who launched the latest cyberattacks.

NSO Group said in a statement on Thursday that it did not have any indication 
their tools were used but canceled the relevant accounts and would investigate 
based on the Reuters inquiry.

"If our investigation shall show these actions indeed happened with NSO's 
tools, such customer will be terminated permanently and legal actions will take 
place," said an NSO spokesperson, who added that NSO will also "cooperate with 
any relevant government authority and present the full information we will 
have."

NSO has long said it only sells its products to government law enforcement and 
intelligence clients, helping them to monitor security threats, and is not 
directly involved in surveillance operations.

Officials at the Uganda embassy in Washington did not comment. A spokesperson 
for Apple declined to comment.

A State Department spokesperson declined to comment on the intrusions, instead 
pointing to the Commerce Department's recent decision to place the Israeli 
company on an entity list, making it harder for U.S. companies to do business 
with them.

NSO Group and another spyware firm were "added to the Entity List based on a 
determination that they developed and supplied spyware to foreign governments 
that used this tool to maliciously target government officials, journalists, 
businesspeople, activists, academics, and embassy workers," the Commerce 
Department said in an announcement last month.

EASILY IDENTIFIABLE

NSO software is capable of not only capturing encrypted messages, photos and 
other sensitive information from infected phones, but also turning them into 
recording devices to monitor surroundings, based on product manuals reviewed by 
Reuters.

Apple's alert to affected users did not name the creator of the spyware used in 
this hack.

The victims notified by Apple included American citizens and were easily 
identifiable as U.S. government employees because they associated email 
addresses ending in state.gov with their Apple IDs, two of the people said.

They and other targets notified by Apple in multiple countries were infected 
through the same graphics processing vulnerability that Apple did not fix until 
September, the sources said.

Since at least February, this software flaw allowed some NSO customers to take 
control of iPhones simply by sending invisible yet tainted iMessage requests to 
the device, researchers who investigated the espionage campaign said.

The victims would not see or need to interact with a prompt for the hack to be 
successful. Versions of NSO surveillance software, commonly known as Pegasus, 
could then be installed.

Apple's announcement that it would notify victims came on the same day it sued 
NSO Group last week, accusing it of helping numerous customers break into 
Apple's mobile software, iOS.

In a public response, NSO has said its technology helps stop terrorism and that 
they've installed controls to curb spying against innocent targets.

For example, NSO says its intrusion system cannot work on phones with U.S. 
numbers beginning with the country code +1.

But in the Uganda case, the targeted State Department employees were using 
iPhones registered with foreign telephone numbers, said two of the sources, 
without the U.S. country code.

A senior Biden administration official, speaking on condition he not be 
identified, said the threat to U.S. personnel abroad was one of the reasons the 
administration was cracking down on companies such as NSO and pursuing new 
global discussion about spying limits.

The official added that they have seen "systemic abuse" in multiple countries 
involving NSO's Pegasus spyware.

Historically, some of NSO Group's best-known past clients included Saudi 
Arabia, the United Arab Emirates and Mexico.

The Israeli Ministry of Defense must approve export licenses for NSO, which has 
close ties to Israel's defense and intelligence communities, to sell its 
technology internationally.

In a statement, the Israeli embassy in Washington said that targeting American 
officials would be a serious breach of its rules.

"Cyber products like the one mentioned are supervised and licensed to be 
exported to governments only for purposes related to counter-terrorism and 
severe crimes," an embassy spokesperson said. "The licensing provisions are 
very clear and if these claims are true, it is a severe violation of these 
provisions."

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