Italy: Cyber espionage scandal – High-profile data breach, secret service sales

Rome: Italian authorities are currently investigating a significant cyber espionage scandal involving high-profile figures and institutions.

The investigation, led by the Milan Public Prosecutor’s Office, focuses on allegations that sensitive information was stolen and potentially sold to foreign intelligence agencies, including those of Israel and the Vatican.

The scandal centers around Carmine Gallo, a former senior police officer once known as a “super cop,” and Enrico Pazzali, president of the Fondazione Fiera Milano. The suspects are accused of breaching the servers of various ministries and police networks to obtain sensitive data.

The stolen information reportedly targeted major companies, including ENI and Mediolanum Bank, as well as public figures such as athletes and politicians.

Gallo and Pazzali are alleged to have funneled data through a private company, Equalize, and sold it to foreign intelligence services for millions of euros.

Wiretapped conversations involving Nunzio Samuele Calamucci, another central figure in the case, revealed potential interactions with foreign intelligence. Calamucci reportedly boasted of having over 15 terabytes of data, encompassing some 800,000 files.

In one recording, he referenced assisting the Church against Russia and hinted at receiving compensation for such acts. These findings have expanded the investigation to include foreign powers and potential geopolitical implications.

Former police officer Marco Malerba, who has been placed under house arrest, admitted during questioning that he accessed state databases on behalf of his former superior, Gallo.

Malerba stated he felt obliged to comply due to his prior working relationship with Gallo.

The investigation has raised alarms within Italy’s political and security circles. Italy Prime Minister Giorgia Meloni has publicly denounced the situation, describing it as “intolerable” and a threat to the democratic fabric of the country.

In response, Italy’s defense minister, Guido Crosetto, urged parliamentary action, warning that the arrests might only represent the “tip of the iceberg.”

The Ministry of Interior has launched an internal probe to evaluate and secure access to critical government databases. Broader reviews of Italy’s cybersecurity framework and data protection laws are also underway.

Reports indicate that foreign intelligence services, including Israeli and Vatican agencies, may have been involved in acquiring data from the Italian firm. In one leaked recording, Calamucci was heard discussing a cyber operation targeting Russian entities, purportedly in collaboration with Israeli agents. The scope of the operation included surveillance on President Vladimir Putin’s affiliates and tracing funds related to the Wagner Group.

Investigations have revealed that Equalize’s clients extended beyond national borders and included significant European and international organizations.

The firm reportedly leveraged its position to intervene in ongoing investigations and trials, boasting of contacts within police and public services.

Italy’s Foreign Minister, Antonio Tajani, described the scandal as “unacceptable,” citing its potential to damage political stability and national security. A specialized task force has been set up to safeguard embassies and diplomatic missions.

Meanwhile, legal proceedings continue with four suspects, including Gallo, under house arrest. Their legal representatives indicated that further clarity on the case would be provided once all documents are reviewed.

The full extent of the investigation remains ongoing, with dozens of individuals facing scrutiny for conspiracy, corruption and illegal wiretapping.