The US is now the largest investor in commercial spyware

The United States has taken the lead as the largest investor in commercial spyware, a sector that enables hidden surveillance of journalists, human rights advocates, and political figures, creating significant risks for human rights and national security. According to a recent report from the Atlantic Council, 20 new US-based investors in spyware emerged in 2024, raising the total to 31. This surge in investment has surpassed contributions from other prominent nations, including Israel, Italy, and the United Kingdom. The Atlantic Council's study examined 561 entities across 46 countries from 1992 to 2024, identifying a total of 128 investors, up from 94 in the previous year’s dataset. In the European Union and Switzerland, there are 31 identified investors, with Italy being a major player, contributing 12. Israel follows closely with 26 investors. Notable US investors include major hedge funds like D.E. Shaw & Co. and Millennium Management, as well as the trading firm Jane Street and financial services company Ameriprise Financial. These firms have reportedly funded the Israeli company Cognyte, which has faced allegations of involvement in human rights violations in countries such as Azerbaijan and Indonesia. In a significant move, AE Industrial Partners, a private equity firm in Florida focused on national security, acquired Israeli spyware vendor Paragon Solutions in late 2024. This company recently made headlines when its contract with Immigration and Customs Enforcement (ICE) was abruptly reactivated after a long hiatus. Civil rights organizations labeled this decision as "extremely troubling," exacerbating existing concerns regarding the increasing budget and authority of ICE. Paragon Solutions has also faced scrutiny in Europe, with reports indicating that its spyware technology was used to target Italian journalists and civil society figures. An Italian parliamentary committee highlighted that the government utilized Paragon's Graphite spyware primarily against human rights defenders. Furthermore, the University of Toronto’s Citizen Lab confirmed instances of an Italian journalist being targeted and uncovered potential clients for Paragon in several countries, including Australia, Canada, Denmark, Cyprus, Singapore, and Israel.