The recent targeting of Serbian activists with advanced spyware has been cited as the latest example in a growing record of misuse within the commercial spyware industry. This trend is making the systemic and foreseeable risks for investors increasingly difficult to overlook.
Despite assurances from the industry that its technology is intended for investigating terrorists and criminals, spyware has repeatedly been linked to the targeting of various groups, including journalists, activists, elected officials, opposition leaders, lawyers, judges, academics, and civil society.
The consequences for companies involved in such activities have been significant, including costly litigation, criminal complaints, sanctions, judicial investigations, tightening export restrictions, and executives being convicted. Some firms have also experienced severe reputational damage and, in certain cases, financial collapse.
Investors are encouraged to screen commercial spyware companies from their investment portfolios and to require fund managers to identify and prevent exposure across investment chains. They are also urged to prompt portfolio companies to take action to prevent spyware proliferation.