The US Treasury Department imposed further sanctions on five individuals and one entity connected to the Intellexa Consortium, a reportedly tainted holding company behind notorious spyware known as Predator. US officials say that even though more sanctions were imposed last year and again this year, additional steps were necessary because of the complicated network of corporate entities Intellexa had established to avoid responsibility.
Most notably, the sanctions talk around the activities of the Intellexa Consortium, who, while placing money through holding companies, continued to move funds and sell its Predator spyware into multiple holding companies. The new sanctions target these loopholes that enable companies such as Intellexa to engage in such activities, thus according to one senior administration official. To that extent, the sanctions prove consistent on the part of the U.S. government in an attempt to hold accountable all those entities that threaten the nation's security and violate civil liberties.
How Predator Spyware Works
Known to steal sensitive information from devices via one-click and zero-click attacks that require little to no activity from the victim, predator spyware can trace people, monitor phone calls, and obtain access to the data of smartphones and other devices. Since 2019, this malware has spread to Android and iPhone devices globally, even affecting the U.S. government.
As recently confirmed, the Biden administration has made it a fact that over 50 US government employees have been affected by commercial spyware, like Predator, in countries counted in more than 10. Though the exact location of the attacks is not made public, such threats are under close observation by the administration.
Key Individuals and Entities Impacted By Sanctions
The new wave of sanctions hits key players in the company of Intellexa. Felix Bitzios, owner of one of the companies that sold Predator spyware to foreign governments, is among them. Another, Andrea Nicola Constantino Hermes Gambazzi, is accused of facilitating other Intellexa entities to make financial transactions. Other sentences will be handed down for Merom Harpaz, Panagiota Karaoli, and Artemis Artemiou. The organisation, Aliada Group Inc. operating in the British Virgin Islands, was sanctioned due to its provision to transfer millions of dollars to Intellexa.
In March, Tal Jonathan Dilian, a founder of Intellexa, was already sanctioned; however, the corporation was not restricted due to its action of continuing to sell spyware to governments worldwide.
Intellexa reaches quite far, with Predator spyware said to be used by state-sponsored actors and governments in a majority of countries around the world, including such ones as Egypt, Indonesia, Saudi Arabia, and the Philippines. According to recent reports, while US sanctions did seem to place a brake on its sales and adoption, they were unable to halt the spyware so entirely that it was at all times held in check. Instead, researchers found that Predator continues to rebound. New clients include government officials and representatives from Angola, Madagascar, and the Democratic Republic of Congo.
More recently, Google disclosed that the Russian government was also using the vulnerabilities created by Intellexa, sending concerns about the company's activities flying across the globe.
While there are many moves in the plan, U.S. sanctions against the government are part of it. Several companies already received the axe, while the State Department banned the visas of those individuals who have been linked to the misuse of spyware. Such is the case for Israeli firms, like the NSO Group, a manufacturer of notorious Pegasus spyware, blacklisted last 2021.
In the near future, the U.S. will, at the UN General Assembly, host a high-level meeting intended to bring more countries on board to fight misuse of commercial spyware. The officials believe that sanctions imposed so far already challenge Intellexa to move money and conduct its business.
A Warning to Spyware Vendors
According to the U.S. Treasury, sanctions represent an undoubtedly clear message of consequences not just for the likes of Intellexa spyware vendors but for the corporate structures or shell companies that may wrap up their operations no matter how deep. The efforts help comprise both the prevention of exploitative technologies and the promotion of responsible development in cybersecurity solutions that follow international standards.
As the U.S. moves to increase its restrictions on spyware, a rising call to reconsider involvement in these businesses has been made for companies operating in that area. Experts believe that skilled cyber professionals have shunned the spyware business to avoid possible legal and financial implications.
A Minnesota-based spyware company has been hacked, exposing thousands of devices worldwide under its covert surveillance, TechCrunch has learned.
Predator is the result of a collaboration known as the Intellexa Alliance, which also comprises Senpai Technologies, Nexa Technologies, and Cytrox (later bought by WiSpear). In July 2023, the United States put Cytrox and Intellexa on its Entity List due to their "trafficking in cyber exploits used to gain access to information systems."
In regards to the issue, Cisco Talos researchers Mike Gentile, Asheer Malhotra, and Vitor Ventura said in a report, "In 2021, Predator spyware couldn't survive a reboot on the infected Android system (it had it on iOS[…]However, by April 2022, that capability was being offered to their customers."
The cybersecurity vendor first revealed the inner workings of Predator and its harmonic connection with another loader component named Alien more than six months ago.
"Alien is crucial to Predator's successful functioning, including the additional components loaded by Predator on demand[…]The relationship between Alien and Predator is extremely symbiotic, requiring them to continuously work in tandem to spy on victims," Malhotra told cybersecurity firm Hackernews in an interview.
Predator is a "remote mobile extraction system" that can target both Android and iOS. It is sold on a licensing model that can cost millions of dollars, depending on the number of concurrent infections and the exploit used for initial access. This puts Predator out of the reach of script kiddies and inexperienced criminals.
Spyware like Predator and Pegasus, which are designed by the NSO Group, often depend on zero-day exploit chains in Android, iOS, and web browsers as covert intrusion vectors. However, if Apple and Google keep patching the security holes, these attack chains can become useless and they will have to start over.
It is significant to note that the organizations that create mercenary surveillance tools can also obtain whole or partial exploit chains from brokers and transform them into a functional exploit that can be used to successfully compromise target devices.
Another noteworthy aspect of Intellexa’s business model is that it gives the task of building the attack infrastructure, giving them some degree of plausible deniability if the campaigns are discovered—which is an inevitable outcome.
"The delivery of Intellexa's supporting hardware is done at a terminal or airport," the researchers said. "This delivery method is known as Cost Insurance and Freight (CIF), which is part of the shipping industry's jargon ('Incoterms'). This mechanism allows Intellexa to claim that they have no visibility of where the systems are deployed and eventually located."
Furthermore, because the operations are intrinsically connected to the license, which is by default limited to a single phone country code prefix, Intellexa has "first-hand knowledge" of whether their customers are conducting surveillance activities outside of their own borders.
According to Ivan Kolpakov, Meduza’s editor-in-chief based in Latvia, it was obvious that Europeans should be very concerned about Pegasus in light of the discoveries regarding the hacking of his colleague Galina Timichenko by an as-yet-unconfirmed EU country.
“If they can use it against an exiled journalist there are no guarantees they cannot use it against local journalists as well[…]Unfortunately, there are a lot of fans in Europe, and we are not only talking about Poland and Hungary, but Western European countries as well,” said Kolpakov.
Since last month, the European Commission has been working on guidelines for how governments could employ surveillance technologies like spyware in compliance with EU data privacy and national security rules since last month. Despite the fact that member states are responsible for their own national security, the Commission is considering adopting a position after learning that 14 EU governments had purchased the Pegasus technology from NSO Group.
Apparently, Timichenko was targeted by Pegasus in February 2023 when she was in Berlin for a private gathering of Russian media workers exile. The meeting's subject was the threats posed by the Russian government's categorization of independent Russian media outlets as foreign agents.
Taking into account the work that Timichenko deals with, Russia was first suspected; but, according to the digital rights organization Access Now, additional information suggests that one of the intelligence services of an EU member state — the exact one is yet unknown — is more likely to be to blame.
Allegedly, the motive behind the hack could be that numerous Baltic nations, to whom Russia has consistently posed a threat, are worried that a few FSB or GRU agents may have infiltrated their borders among expatriate dissidents and journalists.
“It may happen and probably it actually happens, but in my opinion, it does not justify the usage of that kind of brutal tool as Pegasus against a prominent independent journalist,” Kolpakov said.
Kolpakov believes that the revelations have left the exiled community feeling they are not safe in Europe. “This spyware has to be banned here in Europe. It really violates human rights,” he added.