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A new Atlantic Council report reveals that US-based investors in commercial spyware nearly tripled in 2024, making the US the largest financial backer in the sector. This surge comes despite ongoing US government efforts to restrict the spyware market due to human rights and national security concerns. The report highlights a growing contradiction between US policy and private sector investment.
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The number of U.S.-based investors in the spyware market surged in 2024, making the U.S. the largest investor by deal count, according to the Atlantic Council's latest report. This increase undermines U.S. government efforts to restrict abusive spyware, as investments continue to flow to vendors with questionable records. The report also highlights the opaque and under-researched role of brokers and resellers in the spyware ecosystem, complicating transparency and accountability.
Jun 29, 2026
U.S. Immigration and Customs Enforcement confirmed to lawmakers that it bought and used Paragon Solutions spyware, including **Graphite**, in investigations tied to drug trafficking, fentanyl networks, and other organizations using encrypted communications. Acting ICE Director Todd Lyons said the deployment complied with constitutional requirements and the 2023 executive order restricting government use of commercial spyware, but House Democrats including **Rep. Summer Lee** said ICE had not provided enough documentation, safeguards, or oversight to justify such invasive surveillance. The disclosure followed the reactivation of ICE’s Paragon contract after an earlier suspension for review, and came amid wider controversy over reports linking Paragon spyware to targeting of journalists and activists. The admission intensified concerns that U.S. policy may be softening toward the commercial spyware industry even as evidence mounts that these vendors are driving serious cyber abuse. Reporting and research cited growing alarm over the lifting of sanctions on Intellexa executives, new U.S.-linked ownership of **NSO Group** and Paragon, and the expanding role of brokers, resellers, and other intermediaries that help spyware vendors evade export controls and obscure supply chains. Analysts also noted that Google attributed more zero-day exploitation to commercial surveillance vendors than to traditional state-backed groups in 2025, while lawmakers pressed for briefings on federal spyware use and U.S. investment in firms long associated with abuses involving **Pegasus**, **Predator**, and related surveillance tools.
Jun 29, 2026
Investigations and legal filings described a growing **mercenary spyware** market in which private vendors developed and sold intrusion capabilities to government customers, with **NSO Group** emerging as the best-known example but not the only one. Reporting tied NSO’s **Pegasus** spyware to attacks on activists, journalists, and government personnel, including the targeting of UAE activist Ahmed Mansoor and more than **1,400 devices** via a WhatsApp exploit that reportedly required no answer from the victim. Microsoft, Google, Cisco, GitHub, LinkedIn, VMware, and others backed WhatsApp’s lawsuit against NSO, arguing the company should not receive sovereign immunity for operating as a private offensive cyber actor, while broader reporting said Facebook had identified **seven** spyware firms targeting roughly **50,000** people across its platforms. Separate investigations showed the industry stretching beyond NSO into Europe and Asia. Lighthouse Reports linked Italy’s **RCS Lab** and its Tykelab unit to covert mobile-phone tracking through telecom signaling weaknesses and to **Hermit** spyware infrastructure, while Citizen Lab and Motherboard connected a fake WhatsApp phishing campaign to Italian vendor **Cy4Gate** and its **Epeius** lawful-intercept product. Earlier reporting on **Hacking Team** and allegations about **APT17** selling stolen data underscored how surveillance and intrusion capabilities have been commercialized, repackaged, and marketed across borders, despite repeated scandals, lawsuits, and sanctions aimed at curbing abuse.
Aug 15, 2026