Jakarta - An Austrian company that according to Microsoft Corp. created malicious software that was detected on the computer systems of some of its clients in at least three countries, saying its spy tool called "Subzero" is only for official use in European Union countries.

On Wednesday 27 July, Microsoft said the company, DSIRF, had deployed spy software, or spyware - which is capable of accessing confidential information such as passwords or login credentials - at an unidentified number of banks, law firms and strategic consultants.

“Subzero is software from DSIRF GesmbH Austria, which has been developed exclusively for official use in European Union countries. Subzero is not offered, sold or made available for commercial use," DSIRF said in an emailed statement to Reuters

"In light of the facts described by Microsoft, DSIRF categorically rejects the impression that they have misused the Subzero software," he added.

It is not clear which EU member state governments, if any, use the tool. DSIRF did not respond to a request for further comment.

Austria's Interior Ministry told local news agency APA on Friday, July 29, that it was investigating Microsoft's claims. The ministry did not respond to a request from Reuters for comment.

Spyware tools have become an increasing focus in Europe and the United States after Pegasus, a spyware developed by Israel's NSO, was found to have been used by governments to spy on journalists and dissidents.

DSIRF said it had commissioned an independent expert to investigate the issues raised by Microsoft, and had contacted the US tech giant for "collaboration on this matter". Microsoft declined to provide further comment.

In a blog post Thursday, the company said DSIRF had developed four so-called "zero-day exploits," serious software flaws that are particularly valuable to hackers and spies because they function even when the software is up to date.

DSIRF listed several previous commercial clients as references in an internal presentation promoting Subzero published by German news site Netzpolitik last year.

Two of the companies named in the presentation, SIGNA Retail and Dentons, told Reuters they did not use spyware and did not agree to serve as references for the companies. DSIRF did not respond to a request for comment on the matter.


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