Friday, February 20, 2015

Gemalto says investigating hacking report

- Gemalto said on Friday it would investigate a report saying that U.S. and British spies had hacked the digital security firm to steal its encryption keys.

Gemalto's shares fell 8 percent in early trading after the news website Intercept reported the hack by the U.S. National Security Agency (NSA) and Britain's Government Communications Headquarters (GCHQ).


Citing documents provided by whistleblower Edward Snowden, the report said the hack allowed the agencies to monitor a large portion of voice and data mobile communications around the world without permission from governments and telecom companies.


"We take this publication very seriously and will devote all resources necessary to fully investigate and understand the scope of such sophisticated techniques," the company said in a statement.


The Franco-Dutch company makes smart chips for mobile phones, bank cards and biometric passports and counts Verizon and AT&T Inc among its 450 wireless network provider customers around the world.


"If these attacks were to be confirmed and did allow access to various communications, it would be very damaging for Gemalto's reputation," a Paris-based trader said.


Published by First Look Media, Intercept was founded by U.S. documentary maker Laura Poitras, investigative reporter Jeremy Scahill and Glenn Greenwald, who made headlines with his reporting on U.S. electronic surveillance programs.


(This story corrects spelling of "steal" in first paragraph)


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