Israeli Spy Companies
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Israeli Spy Companies: Verint and Narus By Richard Sanders ism specialist and military-intelligence had stolen sensitive technology to officer who served 19 years in Turkey, manufacture artillery gun tubes, ob- n the mid-2000s, two Israeli spy Italy, Germany, and Spain. He notes that tained classified plans for a recon- companies (Narus and Verint) were Israel “always features prominently” in naissance system, and passed sensi- Icaught in the centre of a huge scan- the FBI’s annual report, “Foreign Eco- tive aerospace designs to unauthor- dal involving the wiretapping of virtu- nomic Collection and Industrial Espio- ized users. An Israeli company was ally all US phone and internet mes- nage.” Its 2005 report, he says, stated: caught monitoring a Department of sages. Their mass surveillance services “‘Israel has an active program to Defense telecommunications system were used by America’s two largest tel- gather proprietary information to obtain classified information.” ecom companies, AT&T and Verizon. within the US. These collection ac- Another ex-CIA officer who ex- (See AT&T pp.7-8, and Verizon in ta- tivities are primarily directed at ob- pressed grave concerns about Israel’s ble, “CPP Investments,” p.53.) taining information on military sys- spying is Robert David Steele. He said These telecom giants, which to- tems and advanced computing ap- “Israeli penetration of the entire US tel- gether control 80% of the US market, plications that can be used in Isra- ecommunications system means that were turning over all of their custom- el’s sizable armaments industry.’ It NSA’s warrantless wiretapping actually ers’ internet communications and phone adds that Israel recruits spies, uses means Israeli warrantless wiretapping.” call records to the US National Secu- electronic methods, and carries out Jane’s Intelligence Group re- rity Agency (NSA). On hundreds of oc- computer intrusion to gain the infor- ported in 2004 that Israeli intelligence casions, these data transfers were done mation. agencies “have been spying on the U.S. without legal warrants or court orders. “In 1996…the Pentagon’s De- and running clandestine operations This warrantless wiretapping operation fense Investigative Service warned since Israel was established.” was a gargantuan task requiring the col- [US] defense contractors that Israel In 2008, Harry Brandon, a lection, analysis and transfer of data re- had ‘espionage intentions and capa- former FBI deputy director of counter- lating to billions of messages per day. To accomplish this, AT&T employed Verint and Narus have bugged “virtually the the services of an Israeli spy firm called entire American telecom system,” and Narus, while Verizon used a different “wired much of the planet…. Never Israeli spy company, Verint Systems. The technologies of both Ver- before in history have so few people int and Narus have also been absorbed wiretapped so many.” into the spy products of other compa- “[T]he greatest potential beneficiaries nies. For example, Amdocs has inte- grated Narus software into its products, of this marriage between the Israeli while Verisign has incorporated sys- eavesdroppers and America’s increasingly tems from both Verint and Narus into centralized telecom grid, are its “NetDiscovery” service. (See Am- centralized telecom grid, are docs, pp.5-6, and Verisign in table “CPP Israel’s intelligence agencies.” Investments,” p.53.) James Bamford, author of James Bamford, a former ABC News director and journalist who has The Shadow Factory researched intelligence agencies for bilities’ here [in the US] and was ag- intelligence told Congressional Quar- three decades, has reported that: gressively trying to steal military and terly (CQ) magazine that “the Israelis “Verint and Narus are super-intru- intelligence secrets. It also cited a are interested in commercial as much sive – conducting mass surveillance security threat posed by individuals as military secrets.” CQ surmised that on both international and domestic who have ‘strong ethnic ties’ to Is- “One effective espionage tool is form- [US] communications 24/7. What is rael, stating that ‘Placing Israeli na- ing joint partnerships with U.S. comp- especially troubling, but little tionals in key industries … is a tech- anies to supply software and other tech- known, is that both companies have nique utilized with great success.’” nology products to U.S. government extensive ties to a foreign country, Giraldi says that when the Gen- agencies.” This is precisely what Ver- Israel, as well as links to that coun- eral Accounting Office (GAO), the in- int and Narus have done so effectively. try’s intelligence service – a service vestigative arm of Congress, researched But, as Bamford points out, Ver- with a long history of aggressive spying against US arms industries in int and Narus haven’t just bugged “vir- spying against the U.S.” 1996, it said Israel “conducts the most tually the entire American telecom sys- A glimpse into this “long his- aggressive espionage operation against tem,” these “two firms…have also tory” of Israeli intelligence agencies the US of any U.S. ally.” The GAO wired much of the planet…. Never be- targeting the US is discussed by Philip also reported that fore in history have so few people Giraldi, a former CIA counter-terror- “Israeli citizens residing in the U.S. wiretapped so many.” Spring 2012 (Issue # 66) Press for Conversion! 43 Verint’s cofounder, them are several corporate giants that Jacob “Kobi” support Israel’s military, namely, Cisco, Alexander, Hewlett Packard (HP), Honeywell, Sie- chaired its mens and EMC. (See p.19, p.36 and pp.39-40. For Siemens and EMC, see board from table, “CPP Investments,” p.53.) 1994 until 2006 But besides serving big busi- when he fled Verint Systems Inc. ness, Verint also sells spyware to “law to Israel and Verint is a subsidiary of Comverse enforcement, national security, intelli- then Namibia to Technology which is “the world’s lead- gence, and other government agen- evade 36 charges ing provider of …communications in- cies.” Its technology was used by US of conspiracy, tercept and analysis” technology. telecom giant Verizon to fulfil the mass fraud and money Founded in Israel and with half its em- surveillance requests – legal and oth- laundering. ployees based there, Verint’s parent erwise – from the NSA. “[T]he great- company has attracted its fair share of est potential beneficiaries of this mar- mation to Israel.” The leaky technol- people from Israel’s military and intel- riage between the Israeli eavesdroppers ogy was T2S2 tapware “delivered to the ligence communities. and America’s increasingly centralized [Dutch] government in the last few A search of the Business News telecom grid,” says Bamford, “are Is- years by the Israeli company Verint.” website finds the “Executive Profiles” rael’s intelligence agencies.” In 2004, Verint’s mass surveil- of about twenty key Comverse people Besides the US, Verint’s other lance systems were called “a lemon” who had worked for Israel’s military. major government clients include in the Australian media and a parlia- Of these, at least six were in Israeli in- Mexico, Vietnam, Australia and the mentary committee monitoring the gov- telligence. For example, Alon Geva was Netherlands. Government users in the ernment’s Corruption and Crime Com- “an officer at the elite Intelligence unit two latter countries have raised grave mission (CCC) summoned Verint ex- of the Israeli Defense Forces,” Yoav ecutives to a “closed session.” The Shaked “started his career as an officer committee told Verint that they had in the Israeli Defense Force [IDF] In- “some issues” with the “data intercep- telligence Corps,” Chaim Bechor tion” systems being used by “at least “served as a technical officer in the In- six different law enforcement agencies telligence Corps of the IDF,” Uri across Australia.” The MPs said their Kolodny “served over 4 years in …Is- “issues” with Verint included that it raeli Intelligence,” Alon J. Bender was “can access data from overseas but the the “Senior Security Technology con- CCC seems restricted in its ability to sultant on several Israeli government access data.” Verint’s Tel Aviv-based projects (Prime Minister’s Office, IDF representative confirmed: “We some- and Secret Intelligence), and Noam times operate by remote access.” Livnat “served four and a half years in Bamford has called it “unnerv- the Israeli Defense Forces’ prestigious ing” “that Verint can automatically ac- Intelligence Corps ‘Talpiyot’ project.” cess the mega-terabytes of stored and Originally called Comverse real-time data secretly and remotely Infosys, Verint makes electronic sys- concerns about the security of Verint’s from anywhere, including Israel.” tems to monitor, collect and analyse products and particularly their remote Verint’s board of directors has voice, email and video communica- control from Israel. For instance, always included former military and in- tions. In reference to Verint’s role in Christopher Ketcham reported that: telligence officers from the US and Is- this trade, Bamford notes that by 2004: “In November 2002, sources in the rael. The most infamous of these is “a large percentage of America’s – Dutch counterintelligence commu- Jacob “Kobi” Alexander, an Israeli en- and the world’s – voice and data nity began airing what they claimed trepreneur who cofounded both Com- communications were passing was ‘strong evidence that the Israeli verse and its off-shoot, Verint. Alexan- through wiretaps built, installed, and secret service has uncontrolled ac- der is a former Israeli intelligence of- maintained by a small, secretive Is- cess to confidential tapping data ficer who chaired Verint’s board from raeli company run by former Israeli collected by the Dutch police and its creation in 1994 until 2006, when military and intelligence officers.” intelligence services.’” he was indicted in the US on 36 charges Verint says its customers include In 2003, a Dutch technology of conspiracy, fraud and money laun- “85 percent of the Fortune 100.” They magazine, c’t, ran an article, “Dutch dering.