The US Is Now the Largest Investor In Commercial Spyware

An anonymous reader quotes a report from Wired: The United States has emerged as the largest investor in commercial spyware -- a global industry that has enabled the covert surveillance of journalists, human rights defenders, politicians, diplomats, and others, posing grave threats to human rights and national security. In 2024, 20 new US-based spyware investors were identified, bringing the total number of American backers of this technology to 31. This growth has largely outpaced other major investing countries such as Israel, Italy, and the United Kingdom, according to a new report published today by the Atlantic Council.

The study surveyed 561 entities across 46 countries between 1992 and 2024, identifying 34 new investors. This brings the total to 128, up from 94 in the dataset published last year. The number of identified investors in the EU Single Market, plus Switzerland, stands at 31, with Italy -- a key spyware hub -- accounting for the largest share at 12. Investors based in Israel number 26. US-based investors include major hedge funds D.E. Shaw & Co. and Millennium Management, prominent trading firm Jane Street, and mainstream financial-services company Ameriprise Financial -- all of which, according to the Atlantic Council, have channeled funds to Israeli lawful-interception software provider Cognyte, a company allegedly linked to human rights abuses in Azerbaijan and Indonesia, among others.

Apart from focusing on investment, the Atlantic Council notes that the global spyware market is 'growing and evolving,' with its dataset expanded to include four new vendors, seven new resellers or brokers, 10 new suppliers, and 55 new individuals linked to the industry. Newly identified vendors include Israel's Bindecy and Italy's SIO. The study reveals the addition of three new countries linked to spyware activity -- Japan, Malaysia, and Panama. Japan in particular is a signatory to international efforts to curb spyware abuse, including the Joint Statement on Efforts to Counter the Proliferation and Misuse of Commercial Spyware and the Pall Mall Process Code of Practice for States. The Atlantic Council's Jen Roberts, who also worked on the report, urged expanding Executive Order 14105 to also include spyware. He also emphasized preserving Executive Order 14093, noting that U.S. purchasing power is a key lever in shaping and constraining the global spyware market. 'US purchasing power is a significant tool in shaping and constraining the global market for spyware,' said Roberts.

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