Unveiling Barcelona: The Surprising Rise of Spyware Startups in the Tech Hub

In late 2023, an Israeli security researcher based in Tel Aviv revealed an intriguing recruitment experience that highlights the growing trend of offensive cybersecurity companies in Europe, particularly in Barcelona. Approached via LinkedIn, the researcher was offered a position with what was described as a “legitimate” cybersecurity firm promising competitive pay.

The Recruitment Journey: Suspicion and Secrecy

Throughout the recruitment process, the researcher felt that something was amiss. He shared his concerns with TechCrunch, noting, “The whole secrecy was very weird. Some employees that interviewed me didn’t use their full names, and they took a long time to reveal the company’s location.” This lack of transparency raised red flags for him.

Company Background and Key Players

During discussions with the company’s Chief Technology Officer, Alexey Levin—who previously worked for the sanctioned spyware firm NSO Group—the researcher learned that the company was named Palm Beach Networks. Levin described it as a developer of zero-day exploits and spyware designed for compromising devices.

Additionally, Levin mentioned that Palm Beach Networks had at least one client from the U.S. government, which only fueled the researcher’s skepticism. “It seems like a company that might get sanctioned in the future,” he reflected.

Barcelona: An Emerging Spyware Hub

Despite its controversial past involving political scandals, Barcelona has become a surprising hotspot for spyware startups. The researcher explained that employees cited reasons such as a familiar cultural environment, favorable tax benefits, and pleasant weather as motivations for establishing operations in the city.

• Good tax benefits
• Similar lifestyle to Israel
• Attractive climate

According to industry experts, this trend raises significant concerns for Europe, particularly regarding the ethical implications of surveillance technology. Natalia Krapiva, legal counsel at Access Now, warns that “the spyware business goes hand in hand with corruption and abuse of power.”

Concerns About Surveillance and Human Rights

Experts like John Scott-Railton from the Citizen Lab have voiced their apprehension, suggesting that the emergence of spyware companies in Barcelona could exacerbate Europe’s existing surveillance crisis. Scott-Railton stated, “This will add fuel to the fire of Europe’s spyware crisis.”

Barcelona’s Startup Ecosystem

Barcelona is not just a hub for spyware; it is also home to numerous startups across various sectors. The city hosts more than 500 cybersecurity companies, employing over 10,000 people, a significant increase from previous years. “It’s an attractive location for tech workers due to its lower cost of living compared to other European cities like London and Berlin,” explained an industry insider.

Other notable companies in the area include:

• Paradigm Shift: An offshoot of Variston, struggling with staff retention.
• Epsilon: Led by industry veteran Jeremy Fetiveau.

A Changing Landscape for Israeli Cybersecurity Firms

As regulations tighten in Israel regarding spyware exports, many researchers are relocating to Barcelona. The shift is partially due to the restrictive nature of the Israeli government’s licensing, making it easier to operate within the EU.

While some companies like Paradigm Shift are open about their offensive cybersecurity focus, others maintain a level of secrecy about their operations, which raises ethical concerns.

The Future of Palm Beach Networks

The future of Palm Beach Networks remains uncertain, especially as it has changed names multiple times, a tactic often employed by spyware firms to obscure their activities. The researcher ultimately declined the job offer, stating, “I could get good enough money elsewhere without the ethical concerns.”

For those interested in the evolving landscape of cybersecurity and its implications for privacy and human rights, it is crucial to stay informed about the activities of companies operating in this space, particularly in regions like Barcelona.