Pegasus hacking scandal: Israeli firm ordered to pay WhatsApp $167m

An American jury has ordered Israeli cyber-intelligence company NSO Group to pay $167 million to WhatsApp, following revelations that the firm used its Pegasus spyware to hack into the devices of 1,400 users in 2019.

The ruling marks a historic precedent, making NSO the first spyware developer held legally accountable for exploiting vulnerabilities in smartphone systems. WhatsApp's parent company, Meta, hailed the verdict as a landmark win against the proliferation of unlawful surveillance technology.

Pegasus, NSO’s flagship spyware tool, can be covertly installed on smartphones to access sensitive data, including activating microphones and cameras without the user's knowledge. Although NSO maintains the tool is strictly intended for use by governments to combat terrorism and serious crime, investigations have revealed that the software has been misused to target journalists, activists, politicians, and high-profile public figures globally.

The scandal surrounding Pegasus erupted in 2021 when a leaked database containing over 50,000 phone numbers believed to have been targeted by the spyware was shared with international media outlets. Subsequent investigations uncovered that many of the numbers belonged to senior government officials, royals, business leaders, and more than 180 journalists across the world.

Among those reportedly affected were officials from the UK’s Downing Street and Foreign Office, French President Emmanuel Macron, and family members of murdered Saudi journalist Jamal Khashoggi.

In addition to the $167 million judgment, NSO Group was also ordered to pay an extra $444,000 in damages to Meta, bringing the total penalty to over $167 million.

NSO has vowed to review the ruling and pursue all available legal options, including filing an appeal. “We firmly believe that our technology is crucial for fighting serious crime and terrorism and is used responsibly by authorised government agencies,” the company said in a statement.

However, Meta contends that the jury’s decision sends a powerful message. “This outcome is a critical deterrent to the spyware industry and underscores the legal risks of targeting American technology platforms,” a spokesperson said.

The outcome of the case, which has stretched over six years, could now pave the way for other tech companies to take legal action against NSO Group and similar firms accused of breaching digital privacy protections.