Israeli cyber intelligence firm Paragon Solutions has ended its contract with the Italian government after allegations surfaced that its spyware was used to target journalists and activists. The spyware, known as Graphite, can access encrypted communications without user awareness. The termination follows accusations that Italy breached the contract terms by allegedly using the software to monitor individuals critical of the government’s dealings with Libya.
Background: WhatsApp’s Alarming Revelation
On January 31, 2025, WhatsApp notified 90 individuals across 24 countries that their phones had been infected with spyware linked to Paragon Solutions. The spyware was reportedly deployed through malicious PDF files sent via WhatsApp group chats. Recipients did not need to open the files for their devices to be compromised.
Among the targeted individuals were:
- Francesco Cancellato, Editor-in-Chief of Fanpage
- Luca Casarini, Head of Mediterranea Saving Humans
- Husam El Gomati, a Libyan activist living in Sweden
WhatsApp confirmed the attack was discovered in December 2024, with assistance from Citizen Lab at the University of Toronto, which specializes in tracking digital threats to civil society.
The Role of Paragon’s Spyware: Graphite
Paragon’s spyware Graphite is a military-grade tool similar to Pegasus (developed by NSO Group). It infiltrates devices without user interaction, enabling the extraction of encrypted messages from apps like WhatsApp and Signal.
Paragon’s contract with Italy permitted spyware use only for legitimate purposes like counterterrorism and criminal investigations. However, an unnamed source disclosed that Italy breached these terms by allegedly targeting journalists and activists instead.
Paragon’s Decision to End the Contract
According to a source speaking anonymously to The Guardian, Paragon initially suspended its contract with Italy “out of an abundance of caution” when the allegations first emerged. After confirming a violation of the contract’s ethical framework, the firm fully terminated the relationship.
Paragon, like many spyware vendors, sells its tools exclusively to government agencies under strict conditions. The company has maintained a policy of not commenting on client-specific matters.
Italian Government’s Response
The Italian government, led by Prime Minister Giorgia Meloni, swiftly denied the accusations. In a statement issued on February 12, 2025, the government claimed that:
- Italian intelligence agencies did not target journalists or activists.
- Their spyware usage adheres strictly to legal and ethical guidelines.
Cabinet Minister Luca Ciriani reaffirmed Italy’s cooperation with ongoing investigations while threatening legal action against unfounded accusations.
Despite the denial, opposition parties remain skeptical. Giuseppe Conte, leader of the Five Star Movement (M5S), questioned the government’s narrative, calling the surveillance of journalists “an unprecedented violation of democratic norms.”
Political and Public Reactions
The spyware controversy has sparked intense debate within Italian political circles:
- Barbara Floridia (M5S Senator) voiced concerns about the implications for press freedom and privacy rights.
- Sandro Ruotolo (Democratic Party MEP) demanded clarity on whether Italy had multiple contracts with Paragon and their specific purposes.
The scandal has also fueled concerns about the broader misuse of spyware in Europe. The Italian public is increasingly worried about potential privacy violations and the erosion of press freedoms under the current administration.
International Ramifications
The spyware breach extended beyond Italy, with compromised devices found in multiple EU countries, including Belgium, Germany, Greece, Spain, and Sweden. EU officials are now calling for stricter oversight of surveillance technologies to protect journalists and civil society members from similar intrusions.
Furthermore, Paragon’s recent acquisition by AE Industrial Partners, a U.S. private investment firm, raises questions about the firm’s future operations and its contracts with other nations.
Final Thoughts
Paragon Solutions’ decision to end its contract with Italy has intensified scrutiny over the use of spyware against journalists and activists. While the Italian government denies wrongdoing, evidence of targeted surveillance raises significant concerns about privacy, press freedom, and the ethical use of surveillance technology. As investigations continue, the case serves as a stark reminder of the delicate balance between national security and civil liberties in the digital age.
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