US Leads Global Investment in Commercial Spyware
▼ Summary
– The United States is now the largest investor in commercial spyware, which poses serious threats to human rights and national security through covert surveillance.
– In 2024, 20 new US-based spyware investors were identified, bringing the total to 31 and outpacing other major investing countries like Israel and the UK.
– US investors include major firms like D.E. Shaw and Millennium Management, which have funded Israeli spyware provider Cognyte, linked to alleged human rights abuses.
– A notable new US investment is AE Industrial Partners’ acquisition of Israeli spyware vendor Paragon Solutions, whose contract with ICE was reactivated in late 2024.
– Paragon has been linked to alleged misconduct, including targeting journalists and human rights defenders in Italy and other countries, as confirmed by Citizen Lab.
The United States now stands as the world’s leading financial backer of commercial spyware, a rapidly expanding sector linked to the secret monitoring of activists, reporters, government officials, and private citizens worldwide. This trend raises serious alarms about privacy erosion, democratic integrity, and global security.
A recent study by the Atlantic Council reveals that American involvement has surged dramatically, with 20 new U.S.-based investors entering the market in 2024 alone. That brings the nationwide total to 31, placing it well ahead of other significant players like Israel, Italy, and the United Kingdom. The report analyzed 561 entities across 46 countries over more than three decades, identifying 34 new global investors since last year’s analysis.
Within the European Union and Switzerland, a combined 31 investors have been cataloged, with Italy, a recognized hub for surveillance technology, accounting for nearly a third of that figure. Israel, another major producer and exporter of spyware, hosts 26 investment entities.
Prominent American financial firms are among those bankrolling the industry. D.E. Shaw & Co., Millennium Management, Jane Street, and Ameriprise Financial have all directed funding toward Cognyte, an Israeli company that produces lawful interception software. Cognyte has faced allegations of involvement in human rights violations in countries including Azerbaijan and Indonesia.
In a separate high-profile move, Florida-based private equity firm AE Industrial Partners acquired Israeli spyware vendor Paragon Solutions in late 2024. Paragon recently returned to public attention when its suspended contract with U.S. Immigration and Customs Enforcement (ICE) was unexpectedly reinstated. Civil liberties organizations condemned the decision, warning that it intensifies worries over ICE’s growing power and its impact on individual rights.
Paragon has also been connected to surveillance abuses in Europe. WhatsApp previously reported that the firm’s tools were used to target Italian journalists and civil society figures. Although an Italian parliamentary inquiry initially claimed government spyware was only used against human rights defenders, researchers from the University of Toronto’s Citizen Lab confirmed that a journalist was indeed surveilled. Their investigation also pointed to possible Paragon clients in Australia, Canada, Denmark, Cyprus, Singapore, and Israel.
(Source: Ars Technica)
