On Tuesday, WhatsApp achieved a significant legal win against the notorious spyware developer, NSO Group, as a jury ordered the company to pay over $167 million in damages. This ruling concluded a lengthy legal battle that began in October 2019 when WhatsApp accused NSO of exploiting a vulnerability in its audio-calling feature to hack into more than 1,400 user accounts.
The trial, which lasted a week, featured testimonies from various witnesses, including NSO Group’s CEO, Yaron Shohat, and employees from WhatsApp who worked on the investigation. Notably, prior to the trial, it was revealed that NSO had terminated contracts with ten of its government clients due to the misuse of its Pegasus spyware, disclosing the locations of over 1,200 victims in the process.
During the trial, WhatsApp’s legal team detailed the mechanics of the zero-click attack used by NSO, which involved making a phony WhatsApp call to deliver malicious software to the target’s device without any user interaction. According to WhatsApp’s attorney, the attack required only the target’s phone number and utilized a specially developed server to send harmful messages through WhatsApp.
In a startling admission, NSO Group’s executives confirmed during testimony that they had previously targeted an American phone number in 2022 as a demonstration for the FBI, contradicting their earlier assertions that their spyware was unable to target devices in the U.S. They clarified that this was an exception, designed for testing sensitivity to potential government contracts.
Shohat further noted that NSO’s customers did not select specific hacking methods; rather, the Pegasus system autonomously chose the appropriate exploit based on the target. This reflects a troubling aspect of how NSO’s clientele engages with their spyware capabilities.
In an intriguing twist, NSO Group operates its office in the same building as Apple in Herzliya, Israel. Shohat remarked on the irony of sharing an elevator with a company whose devices have fallen prey to NSO’s spyware.
Revelations from the trial also indicated that NSO continued its surveillance operations against WhatsApp users even after the lawsuit was filed in November 2019. The company allegedly employed codenamed versions of its spyware, with operations running well into 2020.
Financially, NSO Group disclosed grim figures during the trial, reporting losses of $9 million in 2023 and $12 million projected for 2024. They possessed only $8.8 million in assets as of 2023, raising concerns over their ability to pay the damages awarded by the jury. Shohat stated they were struggling financially, sparking doubts about the company’s future viability.
This significant verdict marks a pivotal moment in the ongoing discussions about digital privacy, surveillance, and the accountability of corporations like NSO Group in handling personal data. Further updates will follow as more details from the trial are made available.
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