10 Apr 2016

Cyber Weapons Dealer Offers $1MN for Tools to Hack iPhone





CNNMoney's Jose Pagliery discusses cyber weapons dealer Zerodium, which sells hacking tactics to governments and corporations. Pagliery says that "when there are bugs in software, bugs in products, normally if you find them you tell the company so that they could fix it. In fact in the last few years companies like Microsoft, Google and others, have adopted these things called 'bug bounties' where they're willing to pay you so that you tell them the flaws in their products and they could fix it. This turns this entire model on its head. Because what we're dealing with is a company that's willing to pay you to find out what's wrong but to keep it secret so that it can weaponize that and hand that to a company or a government. And from there we have no transparency."

Zerodium's business is extremely controversial, because it is selling "zero-days," the golden gun of the cyber world. These are rare, powerful hacks that exploit never-before-seen vulnerabilities. They get their name from the notion that tech companies have had "zero days" to fix them.

"This is a weapon," said Zuk Avraham, founder of cybersecurity firm Zimperium. "It takes one man to write an exploit these days -- one man willing to sell his soul to the devil."

"The recent story between the FBI and Apple shows the most interesting aspect of the zero-day business, which is the need for government agencies to get access to unpatched flaws to properly conduct investigations and save lives," he wrote.

And Zerodium isn't the only company selling zero-days to the highest bidder. Experts who closely watch the zero-day market say this business is also conducted by government contractors, like weapons maker Lockheed Martin, consultants at the RAND Corporation and the Florida-based Harris Corporation, which makes a police phone-tracking tool called the Stingray. 

Selling zero-days on the open market can make the Internet and gadgets less safe to use, experts tell CNNMoney.

Non-profit Mozilla says it has rewarded researchers for spotting 260 bugs in the past two years, paying around $3,000 on average. But compare that to Zerodium, which openly advertises it will pay up to $30,000 for a Firefox hack.

Dixon-Thayer said there's now direct pressure on tech companies everywhere to raise their bug bounty prices -- making computer security even more expensive.