Police say they stumbled upon the case after author Amnon Jackont discovered excerpts on the Internet of a book he was still writing. More documents from his computer began appearing on the Internet and someone tried to use his bank details to make transactions.

Jackont realized his computer had been invaded and told police he suspected the spy was his stepdaughter's ex-husband, Michael Haephrati.

In a newspaper interview, he said Haephrati became "vengeful and obsessive" after the collapse of his marriage. Police subsequently found the surveillance software on Jackont's machine.

Story continues below ↓

advertisement | your ad here

Nateev said the discovery snowballed into an international investigation involving British, German and American authorities. "We never saw this in the past," he said. "They were very, very, very surprised by the size of the case and helped us a lot in this."

Investigators determined that Haephrati sold customized copies of his program to three Israeli private investigators. Haephrati, who reportedly lives in London and Germany, has been detained with his new wife by British authorities. The Metropolitan Police decline to say whether he was cooperating.

Some versions of the spy software tempted victims into installing it by posing as a package of confidential documents delivered via e-mail. Once installed, the software recorded every keystroke and collected business documents and e-mails on a victim's PC and transmitted information to a server computer registered in London.

"This was not designed very well," said Robert Sandilands, the head of the virus research lab for Authentium Inc., a Florida security firm. "This does not seem to be the work of an experienced virus writer."

The suspects in Israel include senior executives from three prominent private investigation firms, among them a former top military investigator, retired Shin Bet security agent and former police officers. Police said 12 people are in jail and eight others are under house arrest.

The list of clients implicated in the affair reads like a Who's Who of Israeli blue chips: Amdocs Ltd., a business-software maker that trades on the New York Stock Exchange; the Cellcom phone carrier and three subsidiaries of the Bezeq phone monopoly, a long-distance carrier, cell phone provider and satellite TV firm.

Most of the companies have denied wrongdoing or said they were unaware of the tactics used by investigators they hired.

The alleged victims, meanwhile, reportedly include Hewlett-Packard and the Ace hardware chain, as well as the Globes business daily, Strauss-Elite food group, the HOT cable company, and the Bezeq parent company.

Ira Winkler, author of the book "Spies Among Us," said Trojan horses are a relatively new tactic in a growing epidemic of global high-tech espionage.

He said the break in the case — tracing the scandal to a vindictive relative — was typical. "Never underestimate the stupidity of criminals."

< Prev | 1 | 2