Italy has emerged as a significant global player in spyware, with Italian firms providing governments, including those in Kazakhstan, Syria, and Italy itself, with tools for widespread surveillance, reports The Record, a news site by cybersecurity firm Recorded Future.
One such spyware firm, RCS Labs, gained attention after its spyware, Hermit, was discovered on devices in Kazakhstan following protests. RCS and other Italian vendors specialize in low-cost but highly invasive spyware, which, though less sophisticated than Israel-based NSO Group's Pegasus tool, can intercept calls, messages, and activate device cameras. Even Italian law enforcement has leveraged this local market, using budget-friendly spyware in investigations with minimal oversight, spurred by affordable rental fees set by the Ministry of Justice. Efforts to regulate spyware usage have been ongoing, with legislation mandating judicial evaluation for each case set to take effect in February. While the law is expected to add some safeguards, critics argue that Italy’s complex and fragmented oversight structure may hinder meaningful control. Meanwhile, the thriving spyware market in Italy has attracted talent, driven exports, and led experts to predict further growth in both the domestic and global markets as regulatory legitimacy increases.