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While Gemalto was indeed another casualty in Western governments’ sweeping effort to gather as much global intelligence advantage as possible, the leaked documents make clear that the company was specifically targeted. According to the materials published Thursday, GCHQ used a specific codename — DAPINO GAMMA — to refer to the operations against Gemalto. The spies also actively penetrated the email and social media accounts of Gemalto employees across the world in an effort to steal the company’s encryption keys. Evidence of the Gemalto breach rattled the digital security community. “Almost everyone in the world carries cell phones and this is an unprecedented mass attack on the privacy of citizens worldwide,” said Greg Nojeim, senior counsel at the Center for Democracy & Technology, a non-profit that advocates for digital privacy and free online expression. “While there is certainly value in targeted surveillance of cell phone communications, this coordinated subversion of the trusted technical security infrastructure of cell phones means the US and British governments now have easy access to our mobile communications.”

For Gemalto, evidence that their vaunted security systems and the privacy of customers had been compromised by the world’s top spy agencies made an immediate financial impact. The company’s shares took a dive on the Paris bourse Friday, falling $500 million. In the U.S., Gemalto’s shares fell as much 10 percent Friday morning. They had recovered somewhat — down 4 percent — by the close of trading on the Euronext stock exchange. Analysts at Dutch financial services company Rabobank speculated in a research note that Gemalto could be forced to recall “a large number” of SIM cards. The French daily L’Express noted today that Gemalto board member Alex Mandl was a founding trustee of the CIA-funded venture capital firm In-Q-Tel. Mandl resigned from In-Q-Tel’s board in 2002, when he was appointed CEO of Gemplus, which later merged with another company to become Gemalto. But the CIA connection still dogged Mandl, with the French press regularly insinuating that American spies could infiltrate the company. In 2003, a group of French lawmakers tried unsuccessfully to create a commission to investigate Gemplus’s ties to the CIA and its implications for the security of SIM cards. Mandl, an Austrian-American businessman who was once a top executive at AT&T, has denied that he had any relationship with the CIA beyond In-Q-Tel. In 2002, he said he did not even have a security clearance.

AT&T, T-Mobile and Verizon could not be reached for comment Friday. Sprint declined to comment. Vodafone, the world’s second largest telecom provider by subscribers and a customer of Gemalto, said in a statement, “[W]e have no further details of these allegations which are industrywide in nature and are not focused on any one mobile operator. We will support industry bodies and Gemalto in their investigations.” Deutsche Telekom AG, a German company, said it has changed encryption algorithms in its Gemalto SIM cards. “We currently have no knowledge that this additional protection mechanism has been compromised,” the company said in a statement. “However, we cannot rule out this completely.”

Update: Asked about the SIM card heist, White House press secretary Josh Earnest said he did not expect the news would hurt relations with the tech industry: “It’s hard for me to imagine that there are a lot of technology executives that are out there that are in a position of saying that they hope that people who wish harm to this country will be able to use their technology to do so. So, I do think in fact that there are opportunities for the private sector and the federal government to coordinate and to cooperate on these efforts, both to keep the country safe, but also to protect our civil liberties.”

When the incoming emails stopped arriving, it seemed innocuous at first. But it would eventually become clear that this was no routine technical problem. Inside a row of gray office buildings in Brussels, a major hacking attack was in progress. And the perpetrators were British government spies. It was in the summer of 2012 that the anomalies were initially detected by employees at Belgium’s largest telecommunications provider, Belgacom. But it wasn’t until a year later, in June 2013, that the company’s security experts were able to figure out what was going on. The computer systems of Belgacom had been infected with a highly sophisticated malware, and it was disguising itself as legitimate Microsoft software while quietly stealing data. Last year, documents from National Security Agency whistleblower Edward Snowden confirmed that British surveillance agency Government Communications Headquarters was behind the attack, codenamed Operation Socialist. And in November, The Intercept revealed that the malware found on Belgacom’s systems was one of the most advanced spy tools ever identified by security researchers, who named it “Regin.”

Publicly, Belgacom has played down the extent of the compromise, insisting that only its internal systems were breached and that customers’ data was never found to have been at risk. But secret GCHQ documents show the agency gained access far beyond Belgacom’s internal employee computers and was able to grab encrypted and unencrypted streams of private communications handled by the company. Belgacom invested several million dollars in its efforts to clean-up its systems and beef-up its security after the attack. However, The Intercept has learned that sources familiar with the malware investigation at the company are uncomfortable with how the clean-up operation was handled—and they believe parts of the GCHQ malware were never fully removed.

The revelations about the scope of the hacking operation will likely alarm Belgacom’s customers across the world. The company operates a large number of data links internationally (see interactive map below), and it serves millions of people across Europe as well as officials from top institutions including the European Commission, the European Parliament, and the European Council. The new details will also be closely scrutinized by a federal prosecutor in Belgium, who is currently carrying out a criminal investigation into the attack on the company. Sophia in ’t Veld, a Dutch politician who chaired the European Parliament’s recent inquiry into mass surveillance exposed by Snowden, told The Intercept that she believes the British government should face sanctions if the latest disclosures are proven.

What sets the secret British infiltration of Belgacom apart is that it was perpetrated against a close ally—and is backed up by a series of top-secret documents, which The Intercept is now publishing.

Between 2009 and 2011, GCHQ worked with its allies to develop sophisticated new tools and technologies it could use to scan global networks for weaknesses and then penetrate them. According to top-secret GCHQ documents, the agency wanted to adopt the aggressive new methods in part to counter the use of privacy-protecting encryption—what it described as the “encryption problem.” When communications are sent across networks in encrypted format, it makes it much harder for the spies to intercept and make sense of emails, phone calls, text messages, internet chats, and browsing sessions. For GCHQ, there was a simple solution. The agency decided that, where possible, it would find ways to hack into communication networks to grab traffic before it’s encrypted.

The Snowden documents show that GCHQ wanted to gain access to Belgacom so that it could spy on phones used by surveillance targets travelling in Europe. But the agency also had an ulterior motive. Once it had hacked into Belgacom’s systems, GCHQ planned to break into data links connecting Belgacom and its international partners, monitoring communications transmitted between Europe and the rest of the world. A map in the GCHQ documents, named “Belgacom_connections,” highlights the company’s reach across Europe, the Middle East, and North Africa, illustrating why British spies deemed it of such high value.

Documents published with this article: Automated NOC detection Mobile Networks in My NOC World Making network sense of the encryption problem Stargate CNE requirements NAC review – October to December 2011 GCHQ NAC review – January to March 2011 GCHQ NAC review – April to June 2011 GCHQ NAC review – July to September 2011 GCHQ NAC review – January to March 2012 GCHQ Hopscotch Belgacom connections

Beyond the technical issues, trying to legislate ideas out of existence is a fool’s game: those sufficiently determined will always find ways to make themselves heard. Indeed, as U.S. pop star Barbra Streisand famously learned, attempts to suppress ideas usually result in the greatest publicity possible for their advocates and/or elevate them by turning fringe ideas into martyrs for free speech (I have zero doubt that all five of the targeted sites enjoyed among their highest traffic dates ever today as a result of the French targeting). But the comical futility of these efforts is exceeded by their profound dangers. Who wants governments to be able to unilaterally block websites? Isn’t the exercise of this website-blocking power what has long been cited as reasons we should regard the Bad Countries — such as China and Iran — as tyrannies (which also usually cite “counterterrorism” to justify their censorship efforts)?

s those and countless other examples prove, the concepts of “extremism” and “radicalizing” (like “terrorism” itself) are incredibly vague and elastic, and in the hands of those who wield power, almost always expand far beyond what you think it should mean (plotting to blow up innocent people) to mean: anyone who disseminates ideas that are threatening to the exercise of our power. That’s why powers justified in the name of combating “radicalism” or “extremism” are invariably — not often or usually, but invariably — applied to activists, dissidents, protesters and those who challenge prevailing orthodoxies and power centers. My arguments for distrusting governments to exercise powers of censorship are set forth here (in the context of a prior attempt by a different French minister to control the content of Twitter). In sum, far more damage has been inflicted historically by efforts to censor and criminalize political ideas than by the kind of “terrorism” these governments are invoking to justify these censorship powers. And whatever else may be true, few things are more inimical to, or threatening of, Internet freedom than allowing functionaries inside governments to unilaterally block websites from functioning on the ground that the ideas those sites advocate are objectionable or “dangerous.” That’s every bit as true when the censors are in Paris, London, and Ottawa, and Washington as when they are in Tehran, Moscow or Beijing.

Instead, explained the Rapporteur, states have relied on vague claims whose validity cannot be assessed because of the secrecy behind which these programs are hidden: “The arguments in favor of a complete abrogation of the right to privacy on the Internet have not been made publicly by the States concerned or subjected to informed scrutiny and debate.” About the ongoing secrecy surrounding the programs, the report explained that “states deploying this technology retain a monopoly of information about its impact,” which is “a form of conceptual censorship … that precludes informed debate.” A June report from the High Commissioner for Human Rights similarly noted “the disturbing lack of governmental transparency associated with surveillance policies, laws and practices, which hinders any effort to assess their coherence with international human rights law and to ensure accountability.” The rejection of the “terrorism” justification for mass surveillance as devoid of evidence echoes virtually every other formal investigation into these programs. A federal judge last December found that the U.S. Government was unable to “cite a single case in which analysis of the NSA’s bulk metadata collection actually stopped an imminent terrorist attack.” Later that month, President Obama’s own Review Group on Intelligence and Communications Technologies concluded that mass surveillance “was not essential to preventing attacks” and information used to detect plots “could readily have been obtained in a timely manner using conventional [court] orders.”

That principle — that the right of internet privacy belongs to all individuals, not just Americans — was invoked by NSA whistleblower Edward Snowden when he explained in a June, 2013 interview at The Guardian why he disclosed documents showing global surveillance rather than just the surveillance of Americans: “More fundamentally, the ‘US Persons’ protection in general is a distraction from the power and danger of this system. Suspicionless surveillance does not become okay simply because it’s only victimizing 95% of the world instead of 100%.” The U.N. Rapporteur was clear that these systematic privacy violations are the result of a union between governments and tech corporations: “States increasingly rely on the private sector to facilitate digital surveillance. This is not confined to the enactment of mandatory data retention legislation. Corporates [sic] have also been directly complicit in operationalizing bulk access technology through the design of communications infrastructure that facilitates mass surveillance. ”

The report was most scathing in its rejection of a key argument often made by American defenders of the NSA: that mass surveillance is justified because Americans are given special protections (the requirement of a FISA court order for targeted surveillance) which non-Americans (95% of the world) do not enjoy. Not only does this scheme fail to render mass surveillance legal, but it itself constitutes a separate violation of international treaties (emphasis added): The Special Rapporteur concurs with the High Commissioner for Human Rights that where States penetrate infrastructure located outside their territorial jurisdiction, they remain bound by their obligations under the Covenant. Moreover, article 26 of the Covenant prohibits discrimination on grounds of, inter alia, nationality and citizenship. The Special Rapporteur thus considers that States are legally obliged to afford the same privacy protection for nationals and non-nationals and for those within and outside their jurisdiction. Asymmetrical privacy protection regimes are a clear violation of the requirements of the Covenant.

Three Democratic Senators on the Senate Intelligence Committee wrote in The New York Times that “the usefulness of the bulk collection program has been greatly exaggerated” and “we have yet to see any proof that it provides real, unique value in protecting national security.” A study by the centrist New America Foundation found that mass metadata collection “has had no discernible impact on preventing acts of terrorism” and, where plots were disrupted, “traditional law enforcement and investigative methods provided the tip or evidence to initiate the case.” It labeled the NSA’s claims to the contrary as “overblown and even misleading.” While worthless in counter-terrorism policies, the UN report warned that allowing mass surveillance to persist with no transparency creates “an ever present danger of ‘purpose creep,’ by which measures justified on counter-terrorism grounds are made available for use by public authorities for much less weighty public interest purposes.” Citing the UK as one example, the report warned that, already, “a wide range of public bodies have access to communications data, for a wide variety of purposes, often without judicial authorization or meaningful independent oversight.”

The latest finding adds to the growing number of international formal rulings that the mass surveillance programs of the U.S. and its partners are illegal. In January, the European parliament’s civil liberties committee condemned such programs in “the strongest possible terms.” In April, the European Court of Justice ruled that European legislation on data retention contravened EU privacy rights. A top secret memo from the GCHQ, published last year by The Guardian, explicitly stated that one key reason for concealing these programs was fear of a “damaging public debate” and specifically “legal challenges against the current regime.” The report ended with a call for far greater transparency along with new protections for privacy in the digital age. Continuation of the status quo, it warned, imposes “a risk that systematic interference with the security of digital communications will continue to proliferate without any serious consideration being given to the implications of the wholesale abandonment of the right to online privacy.” The urgency of these reforms is underscored, explained the Rapporteur, by a conclusion of the United States Privacy and Civil Liberties Oversight Board that “permitting the government to routinely collect the calling records of the entire nation fundamentally shifts the balance of power between the state and its citizens.”